Serviced Offices in the UAE: Almost Empty Market

12:26 am  |  05.12.2023

Serviced offices are a unique format of office real estate, where the operator of the service space provides a full range of services for successful business. This format includes everything from the ability to accommodate employees to the provision of reception services, cleaning services, coffee ladies, and a carefully thought-out technological infrastructure for office management.

For Whom

Service offices are suitable for businesses of almost any profile, from IT companies to banks and enterprises engaged in foreign economic activity. The market has teams providing premium office space, serving selective clients with high demands and expectations, regardless of their geographical origin.

Development of the Format in Dubai

For example, vacancies have dropped from 30% to almost zero at the ONE Central business center over the past two years. It is worth noting that rental rates have almost doubled on existing office real estate offers.

In recent years, the format of service offices has been actively developing in the Dubai market, although several years ago technological offices of this type were rare here. The pandemic has reduced demand for office space and commercial real estate, resulting in fewer high-quality office properties. However, after the pandemic, the market is recovering quickly.

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Current Trends in the Real Estate Market in Dubai

Of course, from the common point of view, the term SHELL & CORE primarily refers to internal basic works during the process of construction. This part of the room, which is visible, must be completely completed in its final form – from floor to ceiling.

Although there is talk of problems in Dubai’s housing market, it is premature to apply these concerns to office real estate. Despite the presence of beautiful office buildings, high-quality Class A Premium facilities remain insufficiently common, and their quantity leaves much to be desired.

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If you are an entrepreneur who is planning to start a business in Dubai, the following recommendations are suggested.:

  1. Careful analysis and preparation. Before deciding to enter the local market, detailed analysis and thorough preparation are necessary. Effectively navigating the challenges facing a new entrant into the Dubai market begins with developing a well-thought-out and prepared economic model.
  2. A balanced approach. A new entrepreneur needs to weigh the pros and cons and measure his capabilities and resources. This is the only way to make an informed management decision, taking into account the peculiarities of the local business climate.
  3. Take into account the high cost of the city. Don’t forget that Dubai is a city with a high standard of living and the costs of starting a company and staff salaries will be significant. It is important to consider all aspects of the cost of living in the city and include them in your business plan.
  4. An objective look at risks. Given the high costs in Dubai, it is important for entrepreneurs to maintain an objective view of the risks. This will allow you to better adapt to market conditions and minimize financial difficulties.
  5. Market research. Dubai is an exciting and growing market, but it is important to conduct thorough market research before starting a business. Understanding the needs and preferences of your target audience will help you tailor your business strategy to local requirements.

READ: Prices Are Rising in Dubai: New Apartments and Projects To Be Completed By 2026

With these recommendations in mind, entrepreneurs can more effectively prepare to launch their business in Dubai and successfully navigate the challenges of the local business environment.

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