After working from home has been effective
By Anitha Lakshminarayanan
Due to this outbreak of the Pandemic world over, there have been measures on reducing costs across all industries, whether it is hospitality, technology, or real estate. And for this reason, the commercial real estate owners are rethinking office space as they have not seen any new workplace handover after work from home has been efficient for employers.
As per the gulf news property weekly report, the total number of available stock in Abu Dhabi and Dubai is 3.8 million and 8.7 million sqm Of GLA, respectively.
However, The JLL Q2 report says a total of 312,000 sqm of GLA is expected to handover in Dubai in the second half of the year.
And here are the top reasons why property developers and businesses are reconsidering workroom places
- First and foremost is the impact of office commute stress and cost. Due to this reason, customers, residential and commercial are going to be looking at real estate differently.
Consolidated Operations The pandemic has forced corporates to continue to consolidate operations. The Demand is more on smaller fitted-out units of less than 1000 sq.m, and grade A rents decreased by 13 percent in Dubai as per JLL reports.
- Remote offices in Demand
The idea of a remote office will mean that every home will have a dedicated working space at home. Due to this, the businesses will question why to pay high rents and also incur additional expenditure on maintenance and upkeep of office space when employees have been productive working from home during this period of isolation.
- A new Hybrid model in the future
As per Gulf News Reports Dana Salbak, Head of JLL, Mena says, “Looking ahead, corporations will adopt a hybrid model of working, with some of their employees based in HQ offices, while others continue to work from home, or inflexible office spaces.”
Under these conditions, the market remains favorable for tenants as Landlords are willing to offer attractive incentives as well as contributions to capital expenditures to reduce costs on tenants.