Dubai's Toyota Building Demolition Raises Tenant Concerns

Aug 22, 2026

73 min

Aug 22, 2026 02:31

Toyota building demolition: What Dubai tenants need to know about partitions and eviction

## Demolition Plans and Tenant Rights

The iconic Toyota Building on Sheikh Zayed Road in Dubai is scheduled for demolition in 2027. With 70% of tenants already relocated, questions have arisen about tenant rights and the legality of apartment partitions. Although the building's management claims no forced evictions occurred, electricity has been cut off, reportedly due to Dubai Municipality's actions. Some tenants still hold contracts valid until December 2026.

## Illegal Partitions and Shared Housing Regulations

The situation highlights issues with unauthorized apartment partitions. Dubai Law No. (4) of 2026 regulates shared housing, requiring permits for dividing properties into rooms or bed spaces. Only property owners or authorized companies can legally manage shared accommodations. Tenants cannot partition apartments without proper authorization, and Dubai Municipality sets occupancy limits and facility standards.

## Legal and Financial Implications

Illegal partitions can lead to fines ranging from Dh500 to Dh500,000, with repeat offenses potentially doubling the penalty. Property owners or operators have a year to comply with new regulations. Tenants who partition without consent risk eviction and restoration costs. Landlords can pursue legal action if unauthorized partitions are discovered.

## Demolition and Eviction Rules

For buildings marked for demolition, Dubai's Rental Law requires landlords to give tenants 12 months' notice, specifying the reason for eviction. This notice must be served through a Notary Public or registered post. Tenants have a right of first refusal to rent the property post-reconstruction, provided they act within 30 days of notification.

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