After the pandemic, will a recession alter workplaces next?
Cities must evolve to accommodate a hybrid workforce
The UAE construction market size was valued at $85.6 billion in 2021. The market is projected to grow at an AAGR (average annual growth rate) of more than 3 per cent from 2023-26.
The industrial construction sector is expected to expand this year, supported by the government’s ‘Operation 300bn’ programs, to increase the sector’s contribution to the GDP by 2031. The government’s emphasis on strengthening the business environment, coupled with efforts to achieving longterm economic diversification under the UAE Economic Vision 2030 plan, will further support the sector’s output.
The UAE has about half of the pipeline value of Saudi Arabia, with $288 billion in planned projects; 377 projects, valued at $5.8 billion, are in the industrial sector.
The construction industry was one of the hardest hit during the pandemic, with projects seeing delays and new ones drastically reduced. There was, however, a huge renovation uplift, especially across industrial and commercial buildings. In addition to renovation projects, the workplace space saw a seismic shift in type rather than volume.
This shift to co-working spaces, we believe, will only be exacerbated by the threat of a recession, whether a recession occurs or not.
Facing up to a recession
While the consensus is that a global recession is likely sometime in 2023, it’s impossible to predict how severe it will be or how long it will last. Not every recession is as painful as the 2007-09 Great Recession, but every recession is, of course, painful and some industries are starting to tighten belts. Gensler sees design as strategy in action, focused on results. We leverage design’s power to generate solutions that impact real transformation, when it’s needed. This is one of those times. Industrial architecture has been a primary talking point since the pandemic, as the impact hit the workplace, within construction plans, the hardest.
Globally, the ability to work remotely has made almost half of urban residents think about moving out of their current city. Our data indicates that most people who want to move, and have the ability to work remotely, are considering relocating to another city, often one with a smaller population. Respondents looking to move, but without the ability to work remotely are, in some cases, looking to move to a larger city.
Of those who want to move out of their cities, 80 per cent of people who work from home 1-2 days a week and 76 per cent of people who work from home 3-4 days a week are looking to a move to a city. What this means in the workplace design world is architects need to design hybrid spaces that cater to a new type of requirement.
Not only hybrid style work spaces, but easily accessible, highly connected and attractive enough to leave home. Today’s growing class of remote workers will be looking for cities that have great places for remote work, and that often comes down to cities that provide livable and resilient downtowns.
From increased infrastructure and building adaptation to new developments, cities must prioritise effective ways to support remote working. Cities that can accommodate the hybrid workforce will have a competitive edge in attracting residents.