Dubai’s Commercial Realty Reaps Major Gains as White-Collar Workers Return to Office

Dubai – Dubai’s commercial real estate sector is experiencing a significant uptick, with high-end office space witnessing a surge in demand as businesses prioritize creating distinguished workplace environments to entice employees back to the office.

Emirates REIT (CEIC) PLC, the world’s largest Shariah-compliant Real Estate Investment Trust (REIT), managed by Equitativa (Dubai) Limited, is at the forefront of this trend. The flagship Index Tower in Dubai International Financial Centre, designed by Foster & Partners, is witnessing robust demand for commercial space. Occupancy levels at the iconic 80-storey tower have risen steadily, reaching 82 per cent in the third quarter of 2023, accompanied by a significant rent increase.

Thierry Delvaux, CEO of Equitativa (Dubai) Limited, noted, “There is an interesting dynamic in the market, with strong demand for higher-end commercial leasing. A year ago, the market was driven more by companies seeking office space expansion while keeping costs in check. However, we now see greater optimism and a focus on the value businesses can derive from investing in premium office spaces.”

Delvaux emphasized that tenants at Index Tower value the iconic status and accessibility of the tower, which can be easily accessed by car, taxi, or metro. With the return of Dubai’s white-collar workers to the office, companies are placing a premium on ease of access for their employees.

“Employers recognize the value of collaboration and team building that comes with people working in the same space. However, they also understand that their employees value convenience,” Delvaux added. “Employees don’t want to spend 30 minutes looking for parking or walking long distances from the nearest metro station. They value a workspace that promotes well-being and motivation, which may be intangible but yields quick returns for employers.”