#UAE commercial property market to take a hit as office work is changing | ZAWYA MENA Edition

UAE commercial property market to take a hit as office work is changing | ZAWYA MENA Edition:

With coronavirus cases still being reported and many offices continuing the work from home (WFH) policy , the commercial real estate sector in the UAE could face some pressure next year, an industry expert said.

Since the lockdown in March, when concerned bosses sent masses of employees home, many offices around the country remain mostly empty. Those with client-facing businesses have indeed returned after the restrictions have eased but work from home remains a key trend, and there’s a likelihood of tenants scaling back or changing their office requirements in 2021.

“There will be pressure on the commercial sector in 2021 as leases come up for renewal. In the assets that we manage, we only have a few tenants seeking relief from us. We have some large tenants who still have yet to return to their offices on any great degree. When the lease comes up for renewal [next year], they might reconsider if they need so much space if they’ve managed to work from home,” John Stevens, managing director of property manager Asteco, said during a recent webinar.

Stevens noted that while there isn’t necessarily a rush going on in the UAE to scale back office space, there have already been “a number” of commercial tenants who have opted to send jobs offshore. Other tenants that provide client-facing services are back, but workstations have undergone some changes, such as the installation of partitions and protective screens.