DUBAI: Companies in Dubai are leasing less office space while spending more per square foot as they position themselves for post-pandemic recovery, according to Savills.
Demand for co-working space and serviced offices has also increased as companies look to retain flexibility amid what remains a uncertain economic environment, the global real estate agent said in a report.
“There has been an increase in the number of companies that have reduced their office space across whilst relocating to newer high-quality developments as they adopt a hybrid working model,” Swapnil Pillai, associate director research at Savills Middle East, said in the report. “Their new office space, in many cases 30 percent to 40 percent smaller than their previous take-up, helps to balance a reduction in size against the higher rental levels of better quality and more sustainable space.”
Dubai office rents in the secondary market continued to decline in the first quarter, said Savills, which saw signs of stability in the more central, mature free zones.
DIFC remains the most expensive office space in the emirate with rents ranging from about 120 dirhams ($32.68) per square foot to about 330 dirhams, Savills said.
Sheikh Zayed is next with maximum rents of about 270 dirhams. The lowest rents can be found at Dubai Investments Park where rents are no more than 65 dirhams per square foot.