UAE Flexible Office Space Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.13 Billion |
| Market Size (2029) | USD 1.73 Billion |
| CAGR (2024 - 2029) | 9.16 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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UAE Flexible Office Space Market Analysis
The UAE Flexible Office Space Market size is estimated at USD 1.13 billion in 2024, and is expected to reach USD 1.73 billion by 2029, growing at a CAGR of 9.16% during the forecast period (2024-2029).
The United Arab Emirates is experiencing a rising demand for flexible office spaces, leading to more expansions than contractions in the office market and exacerbating the supply-demand imbalance. This trend and record-high new company registrations pose challenges for firms seeking high-quality office space across the market. The surge is primarily driven by new businesses establishing their operations in the city, as they find these flexible spaces more suitable during their initial phases than traditional offices.
A total of 34,075 new companies joined as members of the Dubai Chamber of Commerce during H1 2024, representing year-over-year (YoY) growth of 5%. The figures reflect the dynamism of Dubai’s business environment and the emirate’s high levels of competitiveness in attracting foreign direct investment. This increase is fueled by Dubai's appeal as a competitive global hub, attracting international startups and expanding companies, particularly from Asia, Central Asia, and the MENA region.
In Dubai, the market saw the addition of 92,000 square meters of new office space in 2023, bringing the total stock to 9.2 million square meters. An additional 44,000 square meters are expected by the end of 2024. Grade-A office rents in Dubai's Central Business District (CBD), surged by 15% year-on-year to AED 2,425 (USD 660) per square meter per annum, setting a new record and reducing vacancies to 8%.
Abu Dhabi's office market also remains strong, with 3.9 million square meters of total stock in 2023 and an expected increase of 112,000 square meters in 2024. Average Grade-A rents in the city rose 12% year-on-year to AED 2,000 (USD 544) per square meter per annum, with vacancies slightly decreasing to 22%.
The demand for hybrid working is notably high in the United Arab Emirates, with 90% of employees favoring hybrid models and 83% reporting employer support for these schemes, per industry associations. In response, IWG launched two new flexible office spaces in 2023: "Spaces" in Dubai and Signature Workspace in Abu Dhabi. The UAE's real estate sector thrives due to the high demand for quality office spaces, limited availability, and a favorable investment climate.
UAE Flexible Office Space Market Trends
Dubai is Experiencing a Surge in Demand for Flexible Office Space
Dubai's co-working space market is rapidly growing, driven by its unique environment that promotes networking, collaboration, and innovation—advantages often missing in traditional office settings. Leading this expansion, Dubai offers modern, well-designed co-working spaces at competitive rates. Key players in the market include Astrolabs, Regus, The Co-Dubai, Nook, and WeWork.
Startups, entrepreneurs, and SMEs are increasingly drawn to these flexible spaces. For instance, in January 2023, the Bureau Business Center introduced the UAE's first female-focused co-working space in Dubai's Gold & Diamond Park, providing tailored amenities to support women in entrepreneurship.
As the number of SMEs and startups rises, Dubai's co-working market is set for continued growth. Ranked 18th globally for flexible office spaces, the city benefits from a robust economic recovery and favorable regional conditions, enhancing its appeal as a hub for Middle Eastern ventures.
In May 2024, South Korea's Ministry of SMEs and Startups (MSS) and the UAE Ministry of Economy signed a Memorandum of Understanding (MOU) to establish the South Korea-UAE SME and Startup Committee. This first-of-its-kind committee aims to bolster bilateral cooperation in the SME and startup sectors through information exchange, institutional collaboration, and infrastructure development.
In the first quarter of 2024, Indian businesses led the list of new companies joining the Dubai Chamber of Commerce, with 4,351 new members. This was followed by Pakistani companies (2,222), Egyptian companies (1,404), and Syrian companies (736). The United Kingdom and Bangladesh also saw significant new memberships, with 698 and 635 new companies, respectively.
The top sectors for new memberships were trade and services (42.3%) and real estate, renting, and business services (33.9%). Other notable sectors included construction (9.2%) and transport, storage, and communications (8.1%).
FDI Surge and Grade-A Offices Demands Propelling UAE Flexible Office Space Market
As of May 2024, Abu Dhabi and Dubai witnessed significant demands for Grade-A office space due to expanding business activities and supportive government policies.
In Abu Dhabi, the demand is surging, with key locations like Maryah Island, Capital Centre, Masdar City, and Al Raha in high demand. Prominent assets such as the Abu Dhabi Global Market and the International Tower are nearing 95% occupancy. Over 90,000 square meters of new Grade A office space is under development and expected by 2026. Rental rates have risen by 1% quarterly, with ADGM seeing increases of up to 30% annually.
In Dubai, Grade-A office space demands have led to a 14% year-on-year rental growth, with some markets experiencing spikes of 20% to 30%. High-demand areas like DIFC have seen a 6% quarterly increase, and premium developments have shown nearly 30% year-on-year growth. Free Zones like Dubai Internet and Media City, Expo City, and DWTC are also active.
In 2023, the United Arab Emirates ranked as the third-largest global foreign direct investment (FDI) market, attracting USD 23 billion across 1,277 projects. This success highlights the country’s appeal due to investor-friendly policies, such as 100% foreign ownership and relaxed visa restrictions. With targets of AED 550 billion (USD 150 billion) in FDI by 2030 and AED 1 trillion (USD 270 billion) by 2051, the United Arab Emirates continues to attract substantial investments despite global FDI declines. The UAE’s focus on innovation and strategic partnerships, including comprehensive economic partnership agreements (CEPA), further boosts its attractiveness.
The surge in FDI, driven by sectors like legal services, wealth management, and technology, is heightening the demand for flexible office spaces. As global firms from Singapore, China, and the United Kingdom expand in the United Arab Emirates, the need for adaptable, cost-effective work environments is growing, fueling the expansion of co-working and flexible office spaces in the region. For instance, Three Arrows Capital, a crypto hedge fund, relocated its headquarters from Singapore to Dubai in 2022.
In response, the UAE's flexible office space market has expanded. Dubai CommerCity partnered with IWG to launch Spaces CommerCity, and Letswork, a co-working marketplace, has grown from zero to over 55,000 users across the United Arab Emirates and beyond. This growth highlights the need for adaptable, high-quality work environments, with technology and digital solutions pivotal in meeting evolving business needs.
UAE Flexible Office Space Industry Overview
The UAE's flexible office space market is getting more competitive and divided, with many local and regional players and a few global players. During the forecast period, the market is expected to grow because companies in the industry are getting a lot of money and investments. Some of the key players in the market include WeWork, Regus Group, Nasab, Astrolabs, Nook, LetsWork, and WitWork. Major companies in the market have used partnerships, business expansions, acquisitions, and new technologies as their primary ways to grow and offer better services to customers. For instance, in 2023, the US-based co-working giant WeWork expanded its presence in Dubai by opening several new locations in high-demand areas, such as DIFC and Dubai Marina. This expansion is part of WeWork's strategy to capitalize on the region's growing demand for flexible office solutions. It reflects its broader strategy of strengthening its global footprint through targeted market entries and collaborations with local workspace providers.
UAE Flexible Office Space Market Leaders
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Astrolabs
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Nook
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Letswork Inc
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WeWork
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Regus Group
*Disclaimer: Major Players sorted in no particular order
UAE Flexible Office Space Market News
- March 2024: Dubai's Roads and Transport Authority (RTA) partnered with The Co-Spaces to launch WO-RK, a co-working space at Burjuman Metro Station that opened in Q2 2024. WO-RK provides a convenient, cost-effective workspace with excellent public transit access, supporting the Dubai Urban Plan 2040 by reducing traffic congestion and carbon emissions. After its success, RTA plans to expand WO-RK to other strategic metro locations.
- November 2023: Majid Al Futtaim and IWG launched five new Regus and Spaces locations across the United Arab Emirates, Oman, and Egypt, adding nearly 7,000 sqm of workspace in critical areas like the Mall of Egypt and City Centre Deira. In Dubai, two hybrid workspaces—Regus Me’aisem (1,877 sqm) and Regus Deira (1,180 sqm)—are set to open in August 2025.
UAE Flexible Office Space Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
- 2.1 Analysis Methodology
- 2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Current Economic and Flexible Office Space Market Scenario
- 4.2 Technological Innovations in the Flexible Office Space Sector
- 4.3 Impact of Government Regulations and Initiatives on the Industry
- 4.4 Key Exports & import statistics of construction materials
- 4.5 Impact of Geopolitics and Pandemics on the Market
- 4.6 Insights into Flexible Office Space Construction Costs
- 4.7 Insights into Rents, Leasing, and Rental Yields in the Flexible Office Space Segment
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Rising Demand for Hybrid Work Models
- 5.1.2 Expansion of Startups and SMEs
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5.2 Market Restraints
- 5.2.1 Market Saturation
- 5.2.2 High Commercial Real Estate Costs
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5.3 Market Opportunities
- 5.3.1 Expansion in Secondary Cities
- 5.3.2 Corporate Partnerships and Collaborations
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5.4 Industry Attractiveness - Porter's Five Forces Analysis
- 5.4.1 Threat of New Entrants
- 5.4.2 Bargaining Power of Buyers/Consumers
- 5.4.3 Bargaining Power of Suppliers
- 5.4.4 Threat of Substitute Products
- 5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
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6.1 By Type
- 6.1.1 Co-working Space
- 6.1.2 Serviced offices / Executive suites
- 6.1.3 Others (Hybrid, Virtual Office)
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6.2 By End Use
- 6.2.1 Information Technology (IT and ITES)
- 6.2.2 BFSI (Banking, Financial Services, and Insurance)
- 6.2.3 Business Consulting & Professional Services
- 6.2.4 Others
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6.3 By User
- 6.3.1 Freelancers
- 6.3.2 Enterprises
- 6.3.3 Start-Ups
- 6.3.4 Others
7. COMPETITIVE LANDSCAPE
- 7.1 Overview (Market Concentration and Major Players)
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7.2 Company Profiles
- 7.2.1 Nasab
- 7.2.2 Astrolabs
- 7.2.3 Nook
- 7.2.4 Letswork lnc.
- 7.2.5 WitWork
- 7.2.6 Instant Group
- 7.2.7 WeWork
- 7.2.8 Regus Group
- 7.2.9 ServCorp
- 7.2.10 SpaceBox
- 7.2.11 Black Swan
- 7.2.12 DTEC*
- *List Not Exhaustive
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. APPENDIX
** Subject To AvailablityUAE Flexible Office Space Industry Segmentation
A flexible workspace, also known as shared office space or flexispace, is fitted with basic equipment like phone lines, desks, and chairs. It allows employees who normally work from home or telecommute to have a physical office for a few hours every week or every month. A complete background analysis of the UAE's flexible office space market, including the contribution of sectors in the economy, assessment of the economy and, market size estimation for key segments, market overview, and emerging trends in the market dynamics, market segments, and geographical trends is covered in the report.
The UAE's flexible office space market is segmented by type (co-working space, serviced offices / executive suites, and others (hybrid, virtual office)), end-use (information technology (IT and ITES), BFSI (banking, financial services, and insurance), business consulting & professional services, other services), and user (freelancers, enterprises, start-ups, and others). The report offers market size and forecasts for all the above segments in value (USD).
| By Type | Co-working Space |
| Serviced offices / Executive suites | |
| Others (Hybrid, Virtual Office) | |
| By End Use | Information Technology (IT and ITES) |
| BFSI (Banking, Financial Services, and Insurance) | |
| Business Consulting & Professional Services | |
| Others | |
| By User | Freelancers |
| Enterprises | |
| Start-Ups | |
| Others |
UAE Flexible Office Space Market Research FAQs
How big is the UAE Flexible Office Space Market?
The UAE Flexible Office Space Market size is expected to reach USD 1.13 billion in 2024 and grow at a CAGR of 9.16% to reach USD 1.73 billion by 2029.
What is the current UAE Flexible Office Space Market size?
In 2024, the UAE Flexible Office Space Market size is expected to reach USD 1.13 billion.
Who are the key players in UAE Flexible Office Space Market?
Astrolabs, Nook, Letswork Inc, WeWork and Regus Group are the major companies operating in the UAE Flexible Office Space Market.
What years does this UAE Flexible Office Space Market cover, and what was the market size in 2023?
In 2023, the UAE Flexible Office Space Market size was estimated at USD 1.03 billion. The report covers the UAE Flexible Office Space Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the UAE Flexible Office Space Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UAE Flexspace Industry Report
Statistics for the 2024 UAE Flexspace market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UAE Flexspace analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
