Flexible workspaces will experience a new increase in popularity amid the return of people from remote employment

Flexible workspaces will experience a new increase in popularity amid the return of people from remote employment

According to the latest market forecasts from its participants, the segment of modern office spaces for large companies should grow in the coming year. Flexible office spaces began their «march» through the Dubai market in 2018, taking an 8% share in the total emirate office market.

Premises designed for quick and convenient conversion for current work purposes quickly gained popularity among both employees and companies, but their sales collapsed catastrophically (approx. Together with the office market as a whole), when COVID-19 hit the world. The blow was so strong that even in 2021, due to the active post-pandemic recovery, the share of flexible offices in the market did not exceed 5%.

Isolation and remote work made large offices an extra commodity on the market and a similar state persisted until the beginning of 2022, when Dubai recorded the first jump in the business activity index in several years. International business began to return to the emirate, and local enterprises got a second wind amid the weakening of quarantine restrictions.

According to some analytical agencies, Dubai is included in the list of the 18 largest office markets in the world and will become one of the driving forces of the global recovery of this segment of real estate. However, the emirate is still quite far from the leaders of the flexible office space market, such as London, New York and Paris.

Nevertheless, at its level, Dubai feels great. Some operators indicate that many of their offices are currently rented at 100% and demand exceeds the available supply. In some areas, the office market has already recovered to the indicators of 2019. The leader among them is Business Bay, the first quarter of which showed a 33% increase in rental rates by 2020 (the first quarter is the last period for which clear data is available).

One of the characteristic features of modern business is hybrid employment schemes that combine remote work with a temporary stay in the office. In view of this, easily adaptable flexible offices gain an advantage over traditional office spaces and this sector of the market promises to continue to grow actively.

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