Dubai office sector remains resilient in first half

Dubai’s office sector has remained resilient over the first half of 2022, aided mainly by the continued demand for Grade A office space which has also led to a sharp drop in vacancy levels for this segment, according to Savills Dubai Office H1 2022 - Market in Minutes report.

Occupier demand has been strong on the back of a buoyant local economy where companies are crystallising their expansion plans, and amid an influx of senior executives, business owners and High Net-worth Individuals (HNIs), said the report.

Dubai’s office utilisation levels in Q2 2022 were highest among Europe, Middle East, and Africa cities tracked by Savills, with an average of 80 per cent of workers back in the office in Dubai in some capacity, according to the recent Savills Prime Office Costs (SPOC) Report.

Paula Walshe, director, International Corporate Services, Savills Middle East says, “Businesses are increasingly acknowledging the importance of upgrading their existing spaces or moving to new places altogether that better suit their renewed requirements, which were altered by the pandemic. Many of our clients are finding better value in consolidating their operations, which is allowing them to sharpen their focus while making significant savings against a backdrop of rising operational costs.”

Swapnil Pillai, associate director of research, Middle East says, “Amid a flight-to-quality, a general shift in occupier preference towards Grade A space continues, driven by an increased focus on ESG compliance and right-sizing of existing real estate footprint for cost and operational efficiency.”

— issacjohn@khaleejtimes.com