Supported by the recovery and government facilities for establishing companies and the decline in rents

The demand for office space in Abu Dhabi increased by 50%

  • The decline in rents for office space in Abu Dhabi is partly due to an increase in supply.

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Realtors reported that the demand for office space in Abu Dhabi witnessed a rise of up to 50%, during the last period, after a period of stagnation during the “Corona” pandemic, noting that the increase in demand included large and small office spaces in business centers alike.

They explained to "Emirates Today" that the increase in demand was supported by the start of the recovery of economic activities in general, as well as the government facilities for establishing companies, the cancellation of fines for previous commercial licenses, in addition to the decrease in office rental prices.

Height

In detail, the CEO of "Skyline Real Estate" in Abu Dhabi, Nader Hassan, said that the demand for office space in Abu Dhabi witnessed a rise in rates that reached 50% during the recent period, after a period of stagnation during the "Corona" pandemic, bringing it back to levels Pre-pandemic approx.

Recovery and facilities

Hassan added that the increase in demand included large office spaces and small offices in business centers alike, explaining that the large demand was supported by three main factors, the first of which is the start of the recovery of economic activities in general after the pandemic, in addition to government facilities for establishing companies that are concentrated in two types of The facilities, the first is the cancellation of the fines of previous commercial licenses, which encouraged many to renew their commercial licenses, while the second type represented by facilitating the procedures for establishing new companies and reducing the cost of establishment to become simple, which prompted many investors to start establishing new commercial activities, which increased the demand heavily on office space.

Hassan indicated that the third factor, which supported the demand for office space, was the drop in the rental price per square meter in Abu Dhabi to between 350 and 400 dirhams on average now, after it ranged between 600 and 700 dirhams on average for average office spaces, while the price is up For luxury office spaces, it reaches 700 dirhams per square meter fully finished, after it was previously reaching 1200 dirhams on average.

Oversupply

Hassan pointed out that the decline in rental prices is partly due to the increase in supply, especially since some companies in Abu Dhabi, especially those working in the fields of technology, are still working remotely, and have not returned their employees to offices, after remote work has proven its feasibility for many companies during the pandemic. In addition, it contributes to reducing operational costs.

He stated that some companies, especially small ones, also resorted to working a lot through the "business center" system or "business centers", to reduce costs, which increased the demand for them by more than 50%, amid the diversity of office spaces in the emirate.

cost reduction

For his part, the head of the "Future 23" real estate company, Ekrami Hammad, said that there is a great demand during the current period for office space in Abu Dhabi, with rates exceeding 25%, especially offices in business centers.

Hammad attributed the growing demand to the recovery from the effects of the pandemic, as well as the facilities offered by the Department of Economic Development in Abu Dhabi, regarding the facilities for issuing new licenses and reducing the cost of establishment, in addition to reducing the cost of some different services for new companies, especially small and medium ones.

business centers

Hammad added that business centers have made it easier for many companies to work, especially as they are characterized by reducing the cost of rent, as they are suitable for small companies that do not have many employees, in addition to that these centers have reduced the cost of basic services such as water, electricity, Internet, etc., as well as documentation costs. Lease contracts, which support the demand for them.

He pointed out that the great activity in the office sector in Abu Dhabi began gradually, since last August, although the summer months are generally quiet and do not witness much activity, reaching the peak of activity at the present time.

optimism

In turn, the real estate broker, Mohamed Fikri, confirmed that there is a growth in the demand for office space in Abu Dhabi, with rates ranging between 20 and 40%, according to the location, area and level of finishing.

He explained that the start of economic recovery in general and optimism about the future of business was reflected in the movement of office rental, in addition to government stimulus initiatives to facilitate and reduce the establishment of companies.

• The start of economic recovery in general, and optimism about the future of business, was reflected in the office rental movement.

momentum

The real estate broker, Mohamed Fikri, said that the abundance of office space of all kinds, especially with remote work, contributed to the decline in rental prices by more than 30%.

Fikri expected that the coming period would witness a momentum in the office sector, including large and small office spaces within business centers, coinciding with the continuation of government initiatives to stimulate and simplify business, and to launch new government projects in a number of sectors.


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