White-collar workers in Dubai have earnestly returned to the office.
The commercial real estate sector in Dubai is experiencing significant growth, particularly in the demand for premium office spaces as companies aim to differentiate themselves and entice employees back to the workplace with an environment that justifies the daily commute.
Emirates REIT (CEIC) PLC, the world’s largest Shariah-compliant Real Estate Investment Trust, managed by Equitativa (Dubai) Limited, is witnessing this trend firsthand. There is a strong demand for commercial space at its flagship Index Tower in Dubai International Financial Centre, designed by Foster & Partners. Occupancy at the striking 80-storey tower continued to rise throughout 2023, reaching 82 percent in the third quarter, accompanied by notable increases in rental rates.
Thierry Delvaux, CEO of Equitativa (Dubai) Limited, remarked on the market’s interesting dynamic. A year ago, companies were primarily focused on securing or expanding office spaces while being mindful of costs. However, there is now a greater sense of optimism and emphasis on the benefits of investing in premium offices. These benefits include a prestigious location for client meetings, closer proximity to major regional and international companies, and a more content and motivated workforce.
Delvaux emphasized that tenants at Index Tower prioritize the tower’s iconic and easily accessible location, reachable by car, taxi, or metro. With Dubai’s white-collar workforce returning to the office, companies increasingly prioritize accessibility for their employees.
“Employers recognize the importance of fostering collaboration and team cohesion through shared physical workspace. However, they also acknowledge that employees prefer convenient access without lengthy commutes or parking challenges,” Delvaux explained. “Additionally, employees value work environments that enhance their well-being and motivation. Though not easily quantifiable, these intangible benefits yield rapid returns for employers.”
