UAE Flexible Office Space Market Size (2024 - 2029)

UAE Flexible Office Space Market Analysis

The UAE Flexible Office Space Market size is estimated at USD 1.13 billion in 2024, and is expected to reach USD 1.73 billion by 2029, growing at a CAGR of 9.16% during the forecast period (2024-2029).

The United Arab Emirates is experiencing a rising demand for flexible office spaces, leading to more expansions than contractions in the office market and exacerbating the supply-demand imbalance. This trend and record-high new company registrations pose challenges for firms seeking high-quality office space across the market. The surge is primarily driven by new businesses establishing their operations in the city, as they find these flexible spaces more suitable during their initial phases than traditional offices.

A total of 34,075 new companies joined as members of the Dubai Chamber of Commerce during H1 2024, representing year-over-year (YoY) growth of 5%. The figures reflect the dynamism of Dubai’s business environment and the emirate’s high levels of competitiveness in attracting foreign direct investment. This increase is fueled by Dubai's appeal as a competitive global hub, attracting international startups and expanding companies, particularly from Asia, Central Asia, and the MENA region.

In Dubai, the market saw the addition of 92,000 square meters of new office space in 2023, bringing the total stock to 9.2 million square meters. An additional 44,000 square meters are expected by the end of 2024. Grade-A office rents in Dubai's Central Business District (CBD), surged by 15% year-on-year to AED 2,425 (USD 660) per square meter per annum, setting a new record and reducing vacancies to 8%.

Abu Dhabi's office market also remains strong, with 3.9 million square meters of total stock in 2023 and an expected increase of 112,000 square meters in 2024. Average Grade-A rents in the city rose 12% year-on-year to AED 2,000 (USD 544) per square meter per annum, with vacancies slightly decreasing to 22%.

The demand for hybrid working is notably high in the United Arab Emirates, with 90% of employees favoring hybrid models and 83% reporting employer support for these schemes, per industry associations. In response, IWG launched two new flexible office spaces in 2023: "Spaces" in Dubai and Signature Workspace in Abu Dhabi. The UAE's real estate sector thrives due to the high demand for quality office spaces, limited availability, and a favorable investment climate.

UAE Flexible Office Space Industry Segmentation

A flexible workspace, also known as shared office space or flexispace, is fitted with basic equipment like phone lines, desks, and chairs. It allows employees who normally work from home or telecommute to have a physical office for a few hours every week or every month. A complete background analysis of the UAE's flexible office space market, including the contribution of sectors in the economy, assessment of the economy and, market size estimation for key segments, market overview, and emerging trends in the market dynamics, market segments, and geographical trends is covered in the report.

The UAE's flexible office space market is segmented by type (co-working space, serviced offices / executive suites, and others (hybrid, virtual office)), end-use (information technology (IT and ITES), BFSI (banking, financial services, and insurance), business consulting & professional services, other services), and user (freelancers, enterprises, start-ups, and others). The report offers market size and forecasts for all the above segments in value (USD).