Dubai is being considered as a practical option in contrast to numerous European cities because of its effective handling of the Covid-19 pandemic, as per global property consultant Savills.
“Dubai has emerged as the location of choice, especially for technology companies, keen to expand in the region. More interestingly, it is also now being considered as a viable alternative to many European cities due to its handling of the pandemic, balancing an effective inoculation drive, whilst keeping the Dubai economy open for business,” Savills said in a commentary on Dubai’s office market.
Swapnil Pillai, associate director, research, Savills, said after a year of remote and hybrid working, most corporate occupiers are taking a longer-term view on their real estate requirements.
Swapnil Pillai, associate director, research, Savills, provided that after a year of remote and hybrid working, most corporate occupiers are taking a longer-term point on their real estate necessities.
“Occupiers are more proactive and now initiate discussions with landlords on lease renewals/restructuring — in most cases, well in advance of their lease expiry, based on their future real estate strategy… A prolonged uncertainty around sustained global economic recovery has led companies to prioritize flexible leasing options. This has increased the demand for co-working and serviced office space,” she said.
As per Emirates NBD Research, commercial properties witnessed a loss in annual rents in the Q1 of the financial year 2021, mainly as ongoing Covid-19 limitations mean many businesses are still urging some employees to work from home to restrict the contagion risk.
Office rents were lowered by 17.8% year-on-year and 2.6% quarter-on-quarter. The commercial property market has seen oversupply challenges prior to the pandemic, adding further to the cost pressures we are witnessing in this segment.
Swapnil Pillai observed that the Dubai office market is composed for growth as it expands in the region, gaining from companies restricting their spend on capital expense.
Moving further, it said growth in hybrid working models and a rise in the figure of start-ups will act as a further catalyst.