According to Savills Dubai Office H1 2022 – Market in Minutes report, the Dubai office space market remained steady during the first half of 2022. It has been driven primarily by the ongoing demand for Class A business premises, which also has led to a sharp drop in vacancy spaces in this segment.
According to the study, there is strong demand for tenants because of a strong local economy, with the completion of business expansion plans and an influx of senior executives, business owners and high net-worth individuals (HNIs).
According to the latest report by Savills Prime Office Costs (SPOC), in the second quarter of 2022, Dubai's office occupancy rate was the highest among cities monitored by Savills in Europe, the Middle East, and Africa. In Dubai, 80% of employees typically return to their jobs in some manner.
Businesses are increasingly recognising the importance of modernisation of existing premises or moving to new offices that fully match their changing requirements due to the pandemic. Many of the market's new clients find great benefit in consolidating their operations, that allows them to focus their attention and achieve significant savings at the same time while operating costs rise.
Swapnil Pillai, Associate Director of Research, the Middle East, states: “With commitment to quality, the general shift in tenant preferences continues towards Class A premises. It is driven by increased attention to ESG compliance and the correct definition of existing property areas in terms of cost and operational efficiency. Further economic diversification and the formation of new sectors like virtual asset field, contribute to the enlargement of the tenant profile.