Flexible offices represent only 2.6 per cent of Dubai’s total office stock, according to Cushman & Wakefield Core’s UAE Trends in Flexible Office 2026 study, published on 22 October. The proportion is considerably lower than in several competing international business centres, suggesting scope for operators to increase their presence if appropriate premises become available.
The consultancy found that 71 per cent of surveyed flexible workspace providers intend to expand over the next 12 months, while 57 per cent identified difficulties securing suitable buildings as their principal obstacle. Meanwhile, 62 per cent reported occupancy of at least 85 per cent, indicating substantial utilisation of existing facilities.
More than 680,000 square feet of flexible office space has been absorbed across the UAE since January 2025. Demand has come from start-ups, international businesses establishing operations and established companies seeking additional accommodation without undertaking expensive office fit-outs or accepting lengthy conventional leases.
The UAE ranked sixth globally for flexible office market maturity in the consultancy’s assessment. Its score increased to 77 per cent this year from 67 per cent in 2025, reflecting the development of the operator market and greater adoption of flexible premises by corporate tenants.
Prathyusha Gurrapu, head of research at Cushman & Wakefield Core, said the next stage of expansion would depend on access to suitable properties and closer cooperation between building owners, workspace operators and occupiers. The findings indicate that demand alone is insufficient to secure growth when appropriate commercial space remains scarce.
Robert Thomas, the consultancy’s head of agency, highlighted the appeal of immediately available, high-quality offices as Grade A accommodation remains limited and fitting out conventional premises carries significant upfront costs. Larger companies are joining smaller enterprises in considering serviced offices as an alternative to traditional leasing arrangements.
The shortage extends beyond the flexible workspace segment. CBRE estimated Dubai’s overall office occupancy at approximately 94 per cent during the second quarter, with limited Grade A stock supporting rental values. Average office rents rose 13 per cent year on year, while prime rents increased 16 per cent, according to its market review.
Separate figures from Savills show that Dubai’s office leasing activity moderated during the third quarter, although demand for well-located accommodation remained steady. Approximately 20,200 rental transactions were recorded, with new agreements accounting for 51 per cent and renewals making up the balance. Average rents stood at AED241 per square foot.
Smaller units dominated those transactions. Offices measuring less than 1,000 square feet accounted for 66 per cent of leasing activity, underscoring the importance of compact premises to businesses entering the market or adjusting their requirements. Savills also identified strong preferences for modern buildings with metro access, amenities and sustainability credentials.
Landlords have begun responding by incorporating flexible workspaces into new developments and existing properties, either through direct operations or partnerships with specialist providers. Cushman & Wakefield Core expects flexible accommodation to occupy at least 10 per cent of leasable space in most new Grade A developments, although this remains a projection rather than a committed supply figure.
Such arrangements can help property owners diversify their tenant offering and make use of larger floorplates. However, revenue-sharing partnerships also expose landlords to changes in workspace occupancy and operating expenditure, while occupiers must assess whether the convenience of serviced offices offsets their potentially higher costs over extended periods.
The comparison with overseas markets illustrates the difference in penetration. Flexible offices account for 5.2 per cent of office stock in London, 6.8 per cent in Singapore and 12 per cent in Bengaluru, against Dubai’s 2.6 per cent. These benchmarks reflect differing market structures and do not establish how quickly Dubai’s share might increase.
Regional geopolitical uncertainty has also influenced corporate accommodation decisions. Businesses seeking to preserve financial flexibility have reconsidered expansion schedules and lease durations, while operators offering furnished offices have benefited from interest among companies unwilling to make substantial commitments amid uncertain operating conditions.
Savills expects limited new office supply during 2026, with development activity increasing from 2028. Its third-quarter assessment found landlords favouring financially strong tenants and longer commitments, a preference that can complicate negotiations for flexible workspace operators seeking premises on commercially viable terms.
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