The UAE's commercial real estate market is adapting to the growing demand for flexible workspaces as hybrid working models gain popularity. In the first half of 2024, Dubai saw 34,075 new company registrations reflecting strong global business interest. The country's economy is also set to grow by 4% in 2024, driven by diversification and foreign investment.

The shift towards hybrid working has transformed office space requirements. Many businesses now prefer flexible, co-working spaces that can scale with their needs offered by providers like WeWork, IWG and Servcorp. These dynamic spaces are particularly appealing to start-ups.

At the same time, prime areas like DIFC, Downtown Dubai and Business Bay are experiencing a strong recovery with Grade A office occupancy near 97% and rental prices increasing by up to 44%. This reflects a return to in-office work but with more flexible leases and layouts.

Sustainability has become a priority with increased demand for green-certified, energy-efficient buildings. Secondary markets like Dubai Science Park and Dubai Investments Park are also thriving with significant rental growth as businesses seek affordable alternatives.

Despite challenges like supply constraints and rising rents in prime areas, developers are adapting by creating spaces that cater to both collaboration and privacy. The UAE’s commitment to infrastructure and innovation is expected to keep driving demand for commercial real estate with flexible and sustainable spaces becoming the norm.