In recent months, the UAE has seen an increase in work in the commercial interior contracting sector.
For some companies, it’s the attraction of being able to select from a wider choice of commercial space that’s available, or the opportunity to consolidate a number of regionally based operations, whilst for others it’s an expansion drive to untapped Middle East markets.
Summertown Interiors, a key player in both interior contracting and sustainability, looks at why the local industry is now full steam ahead and the factors that are opening up more avenues for commercial fit out companies.
“Dubai has become affordable again and with lower rents on offer, we can see that companies across different industries are looking to take advantage of options that lend themselves to significant cost savings,” said Marcos Bish, MD, Summertown Interiors.
“As we see a higher demand for office space, there is a renewed sense of confidence among local players within the contracting industry who have the resources available to compete for larger projects that are coming around more often.”
Top 4 Industry Trends:
1) Movement to better equipped office space: Many companies due to the financial crisis have been through restructures to streamline and improve efficiency of their operations. This has meant that companies have been moving offices to workspaces that are engineered to better meet their needs.
2) Cost-conscious tenants: Large corporate/F500 companies who previously had numerous offices over Dubai are now taking advantage of lower rents and better accommodation by consolidating all of their existing offices. Companies are now more confident in negotiating with landlords to bring prices well below the asking price while landlords are offering, rent-free periods and longer leases to attract tenants and ensure tenant retention.
3) Movement from converted residential space to purpose-built office space: Companies operating from previously converted residential space (villas) are now moving to purpose-built office space due to the better quality stock and often so that they can expand on their space and resources as converted villas often leave them restricted on space.
4) Expansion of companies within the UAE: As the market regains confidence, companies across the board are looking to strengthen their presence, whether this move be from Dubai to Abu Dhabi or vice versa.