UAE Flexible Office Space Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | > 6.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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UAE Flexible Office Space Market Analysis
The UAE flexible office space market is expected to register a CAGR of approximately 6% during the forecast period.
- The COVID-19 pandemic-induced new work strategies and hybrid arrangements significantly accelerated the rising demand for flexible office spaces in the UAE. An increasing number of startups drove the growth of the flexible office space market as they opted for co-working spaces owing to the increased rent of private office spaces.
- The UAE is considered one of the largest markets for flexible space in the Middle East and North Africa (MENA) region. In recent years, the country has seen the entry of companies like Letswork, Servcorp, and My Office offering shared spaces to corporations and freelancers. Government-run free zones have also offered their own flexible spaces, primarily to attract start-ups and freelancers. Letswork, a UAE property technology start-up, aims to capitalize on the growing demand for co-working spaces and expand its operations across the region.
- Flexible office space in the UAE is surging in demand, not only because of the flexibility it offers tenants but also due to the critical shift in workplace strategy and wellness that it addresses. By incorporating flex space into their portfolios, end-users can better mitigate risk and attract top talent by providing motivating, collaborative, and amenity-rich work environments.
- Furthermore, co-working spaces are emerging as a major sector in the market because they provide an environment to build professional relationships and expand business operations. In addition, Dubai is leading the country in terms of supply and demand for flexible office spaces. However, the low level of awareness regarding flexible office spaces is hampering the market's growth. This is attributed to a huge misconception among many SMEs and startups from various industry verticals that flexible office spaces are only for the IT sector, as they mainly work from their devices.
UAE Flexible Office Space Market Trends
This section covers the major market trends shaping the UAE Flexible Office Space Market according to our research experts:
Increasing Demand for Commercial Working Space
The area of commercial working space in Dubai, in the United Arab Emirates (UAE), will reach 9.18 million square meters in 2021. The area in 2019 was recorded at 8.74 million square meters. One Business Centre (OBC), a company built to inspire entrepreneurship success by providing company formation, private offices, and coworking spaces in Dubai, has recently witnessed a profound transformation in its clientele demographic and is even planning to expand its current space to 100,000 sq ft by the end of 2023. The industry association has revealed that the demand for Grade A office space is continuing to rise, along with occupancy levels. It also revealed that office rents in the UAE's two largest business hubs, Dubai and Abu Dhabi, remained resilient over the quarter.
Office rents in Dubai are rebounding for the first time in six years, rising faster than in New York or London. During the second quarter of 2022, the value of office rentals in the city rose for the first time since early 2016. Prime office rents rose 7 percent in the year through June, while rents for grade A space increased by 7.2 percent. At the other end of the spectrum, lower-grade workspace rose 3 percent, according to CBRE Group. Average Prime and Grade A rents in Abu Dhabi fell by 6.9 percent and 1.1 percent, respectively, whereas the Grade B segment of the market saw average rents increase by 4.5 percent in 2022.
With demand for office space rising, rents have also gone up, particularly in popular business districts such as Sheikh Zayed, where leasing rates rose by 35 percent in Q1 2022, One Central (29 percent), Business Bay, Jumeirah Lakes Towers (29 percent), and Downtown Dubai (16 percent). Office units with a combined 480,000 square feet of space were delivered during Q1 2022, bringing the city's office supply to 107 million square feet.
Co-working Spaces are Witnessing Significant Growth
Furthermore, co-working spaces facilitate different kinds of interaction, opening opportunities for networking, collaboration, and idea exchange in a way that cannot necessarily be replicated in a conventional office environment. These factors are driving the growth of the market. Dubai is leading the way in providing co-working spaces in the UAE. In addition, co-working spaces in Dubai offer well-designed working spaces with modern decors at affordable membership prices. Some of the major co-working spaces in Dubai include Astrolabs, which offers co-working spaces for USD 408.38 per month, followed by Regus, The Co-Dubai, Nook, etc.
Co-working spaces are becoming the places where startups, new entrepreneurs, and small and mid-sized businesses (SMEs) like to work the most. The Bureau Business Center, referred to as The Bureau, focuses on creating an environment that supports women within the entrepreneurial and startup worlds and officially opened the UAE's first female-focused coworking space in the heart of Dubai in January 2023. Located in Dubai's Gold & Diamond Park, The Bureau features all the makings of a classic coworking space, including lounges, meeting rooms, and private offices, but it goes further to support each member's experience as a woman in business.
The pandemic caused restrictions and policies to keep people away from each other in the office sector, but the sector is now getting better. Co-working spaces are becoming the place where startups, new entrepreneurs, and small and mid-sized businesses (SMEs) like to work the most. During the forecast period, one of the main reasons for the growth of co-working spaces is likely to be the rise in the number of SMEs and startups in many different industries.
UAE Flexible Office Space Industry Overview
The market for flexible office space in the UAE is getting more competitive and divided, with a lot of local and regional players and a few global players. During the forecast period, the market is expected to grow because companies in the industry are getting a lot of money and investments. Some of the key players in the market include Nasab, Astrolabs, Nook, LetsWork, and WitWork. Major companies in the market have used partnerships, business expansions, acquisitions, and the use of new technologies as their main ways to grow and offer better services to customers. For example, in November 2022, Singapore-based startup Deskimo, which was backed by Y Combinator, expanded its services to Dubai. Soon, the company plans to add Abu Dhabi and other cities in the region. It has also partnered with workspaces such as Nook, Servcorp, Unbox, myOffice, The Place, The Executive Center, and many more.
UAE Flexible Office Space Market Leaders
Nasab
Astrolabs
Nook
Letswork Inc
WitWork
*Disclaimer: Major Players sorted in no particular order
UAE Flexible Office Space Market News
- February 2022: Asset management firm Merex Investment has signed a commercial office lease agreement with Talabat, MENA's leading tech company, to set up its regional and UAE headquarters at City Walk, Dubai's centrally located design-inspired, mixed-use destination. Talabat's regional HQ will span almost 150,000 sq ft of premises, featuring a custom-built office environment that can cater to over 2,000 employees.
- January 2022: Cloud Spaces has launched a state-of-the-art flexible working facility at Yas Mall. Intended to support and empower freelancers, entrepreneurs, and small businesses, it provides a safe, inspiring, and motivational working environment that comes complete with a wide range of creative facilities.
UAE Flexible Office Space Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Technological Trends in the Industry
4.3 Government Initiatives and Regulatory Aspects
4.4 Industry Value Chain Analysis
4.5 Insights on Flexible Office Space Rents
4.6 Insights on Office Space Planning
4.7 Impact of Remote Working on Space Demand
4.8 Insights into Flexible Office Space Construction Costs
4.9 Insights into Key Flexible Office Space Industry Metrics (Supply, Rentals, Prices, Occupancy/Vacancy (%))
4.10 Insights into Rents, Leasing, and Rental Yields in the Flexible Office Space Segment
4.11 Insights into Key Trends on Rental and Leasing
4.12 Impact of COVID - 19 on the Market
5. MARKET DYNAMICS
5.1 Drivers
5.2 Restraints
5.3 Opportunities
5.4 Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers/Buyers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION (Market Size By Value)
6.1 By Type
6.1.1 Private offices
6.1.2 Co-working space
6.1.3 Virtual Office
6.2 By End-User
6.2.1 IT and Telecommunications
6.2.2 Media and Entertainment
6.2.3 Retail and Consumer Goods
6.3 By City
6.3.1 Dubai
6.3.2 Abu Dhabi
6.3.3 Sharjah
6.3.4 Rest of UAE
7. COMPETITIVE LANDSCAPE
7.1 Overview
7.2 Company Profiles
7.2.1 Nasab
7.2.2 Astrolabs
7.2.3 Nook
7.2.4 Letswork Inc
7.2.5 WitWork
7.2.6 Instant Group
7.2.7 WeWork Management LLC
7.2.8 Regus Group
7.2.9 ServCorp
7.2.10 DTEC*
- *List Not Exhaustive
8. FUTURE OF THE MARKET
9. APPENDIX
UAE Flexible Office Space Industry Segmentation
A flexible workspace is also known as shared office space or flexispace. This type of office space is fitted with basic equipment like phone lines, desks, and chairs, a setup that allows employees who normally work from home or telecommute to have a physical office for a few hours every week or every month.
UAE Flexible Office Space Market is Segmented by Type (Private offices, Co-working Space, and Virtual Office), by End User (IT and Telecommunications, Media and Entertainment, and Retail and Consumer Goods), and by City (Dubai, Abu Dhabi, Sharjah, and Rest of UAE). The report offers the market size and forecasts in dollars (USD billion) for all the above segments.
| By Type | |
| Private offices | |
| Co-working space | |
| Virtual Office |
| By End-User | |
| IT and Telecommunications | |
| Media and Entertainment | |
| Retail and Consumer Goods |
| By City | |
| Dubai | |
| Abu Dhabi | |
| Sharjah | |
| Rest of UAE |
UAE Flexible Office Space Market Research FAQs
What is the current UAE Flexible Office Space Market size?
The UAE Flexible Office Space Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)
Who are the key players in UAE Flexible Office Space Market?
Nasab, Astrolabs, Nook, Letswork Inc and WitWork are the major companies operating in the UAE Flexible Office Space Market.
What years does this UAE Flexible Office Space Market cover?
The report covers the UAE Flexible Office Space Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the UAE Flexible Office Space Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UAE Flexspace Industry Report
Statistics for the 2024 UAE Flexspace market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UAE Flexspace analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
