Remote working will demand bigger units and more flexible leases in UAE says report

DUBAI: The growth of remote working across the Emirates is changing demand for residential real estate according to a new report from broker Asteco.
Overall sales prices and rents contracted last year but the broker also noted a rise in rents and villa sales prices in certain locations which it attributed to changing workplace and work-life habits.
“The longer-term trend toward remote working will also see a need for larger residential dwellings and short term/serviced apartments with more flexible leasing and payment plans,” said HP Aengaar, CEO at Asteco, said, “Flexible and home working, use of advanced and smart technologies such as AI, automation, contactless technology, need for larger units with outdoor space and increased storage space and preference for lower density developments are some of the trends that will be taken over in 2021 and beyond.”
Asteco expects the market to remain soft amid persistent economic uncertainty.
In Abu Dhabi, approximately 15,000 residential units are anticipated for completion in 2021 — a large number of units concentrated on Reem Island comprising approximately 1,850 units, Al Raha Beach with 4,000 units, Yas Island with 2,400 units and Saadiyat Island with 800 units.
In Dubai, 41,500 new residential units and 1.5 million square feet of office space are expected for handover in 2021.
The broker said this figure could possibly increase if currently stalled projects resume activity.
“With more supply expected for handover in 2021, tenant retention will become increasingly important,” Asteco said.