What does the future hold for commercial spaces in the UAE?
As vaccine distribution ramps up, are we hopeful of being able to return to pre-pandemic routines. Do people want to go back to the old normal in its entirety? Three industry experts offer their views on what has really, truly changed for this sector.
Hybrid workplaces will be the future of offices.
Faraz Ahmed, research associate at JLL Mena says, “The office will become an extension of our lives, a place where employees can socialize, connect and learn. The new model must harness the emotional, digital, and physical dimensions and will build viewing each company’s culture and trends within its industry.”
Serviced spaces
According to Taimur Khan, head of research at Knight Frank Middle East, “The future will see a demand for conventional office space and serviced spaces, where occupiers have the option to take additional space, likely provided by an operator that specialises in such services. Not only will this be required due to economic uncertainties that will persist over the coming years, but also due to nature if project-driven work in the region.
Change in retail demand with fast-tracked adoption of e-commerce
Mike Young, senior director, head of advisory and transaction, CBRE says online purchases were always forecasted to grow in this region given that e-commerce penetration before the pandemic was only tracking at approximate 4.5 per cent. But the pandemic has only expedited this trend.
“We have seen many retailers in the UAE being able to pivot quickly following the onset of the pandemic last year, and they have positioned themselves well for long-term sustainable growth. The retailers that were not able to react as quickly or rejected the concept of e-commerce or did not incorporate an omnichannel approach into their business model have been heavily affected,” says Young.
“We have seen a significant increase in homegrown concepts with a range of exciting new concepts coming to the market over the last 12 months.”
“With the rents at their current levels, it provides retailers with an opportunity to expand their business in prime locations/assets with minimal risk and adapt longterm views. We see this trend likely continue throughout 2021,” says Young.