Dubai flexible office market tops 1.2 million sq ft with occupancy of up to 85 per cent

Dubai flexible office supply exceeds 1.2 million sq ft, with occupancy of 75–85 per cent, as JLL reveals Abu Dhabi growth and changing corporate demand.

Dubai’s flexible office market has grown to more than 1.2 million sq ft of workspace, with occupancy rates ranging from 75 to 85 per cent, according to a new report from global real estate consultancy JLL.

Approximately 55 per cent of the emirate’s existing flexible workspace inventory has been delivered since 2022, highlighting the scale of recent investment in the sector.

The findings, published in JLL’s Middle East & Africa Flexible Workspace Market Report 2026, position Dubai as the region’s largest and most mature flexible workspace hub, with a diverse range of locations catering to businesses seeking alternatives to traditional office leases.

The report identifies a growing opportunity for flexible office providers as companies reassess their property requirements in response to artificial intelligence, evolving workplace models and uncertainty over future workforce needs.

Across the Middle East and Africa, more than 90 per cent of corporate real estate portfolios remain committed to traditional, long-term leases, according to JLL.

Dubai flexible office market reaches 1.2 million sq ft

JLL identifies Dubai as the UAE’s leading flexible workspace market, supported by a broad range of locations and pricing options.

The emirate’s commercial districts serve different business requirements, from premium central business district locations to more cost-conscious office hubs such as Jumeirah Lakes Towers (JLT).

Private offices account for approximately 95 per cent of flexible workspace in Dubai’s central business district locations, reflecting demand from financial and professional services companies with confidentiality and regulatory requirements.

Dubai’s flexible office market also benefits from a diverse occupier base. Approximately 55 per cent of tenants are regional or local businesses, while international occupiers account for 40 to 45 per cent. Demand comes from companies establishing operations, expanding existing businesses and relocating offices.

JLL said operators had responded to softer absorption associated with geopolitical tensions by introducing tenant incentives and more flexible lease structures rather than making substantial rental rate reductions.

The report suggests that these measures have helped operators maintain pricing while responding to changing market conditions.

Abu Dhabi flexible offices record occupancy of up to 85 per cent

Abu Dhabi’s flexible workspace market has reached approximately 366,000 sq ft, with occupancy rates ranging from 70 to 85 per cent, according to JLL.

The capital has experienced significant supply additions during 2024 and 2025, supporting its transition from a relatively specialised market towards a larger flexible office sector.

Abu Dhabi Global Market (ADGM) accounts for 57 per cent of flexible workspace operator presence in the capital, reflecting the concentration of demand around the emirate’s financial centre.

New company establishments are a particularly important source of demand.

JLL found that new business setups account for approximately 60 to 70 per cent of flexible workspace enquiries in Abu Dhabi, the highest proportion among the Middle East and Africa markets examined.

International businesses account for approximately 45 to 55 per cent of demand, highlighting the capital’s growing appeal to overseas companies.

AI and changing workplace models reshape corporate office demand

JLL argues that companies need to reconsider their approach to office leasing as artificial intelligence and evolving working practices create uncertainty over future workforce requirements.

Despite the growing interest in flexible workspace, adoption remains limited among many large corporations.

Globally, fewer than five per cent of corporations allocate more than 10 per cent of their property portfolios to flexible workspace, while more than 40 per cent allocate one per cent or less, according to the report.

Dana Williamson, Head of Offices, Business Space and Retail – MEA at JLL, said: “The flex office sector is evolving, and the combination of a ready, financially stable supply and a growing demand for agility amid AI and evolving business requirements has created a defining moment for the industry. This shift creates opportunities for investors to participate in high-growth segments and for operators to build on compelling returns. As it becomes increasingly difficult for CEOs to predict what effective working habits will look like in three to five years, for corporate occupiers, flexibility becomes a core strategic tool for mitigating risk. How quickly and at what scale they position for this inevitable shift will be key to securing a competitive advantage.”

The report identifies flexibility as an increasingly important consideration for companies that cannot confidently predict how their staffing levels, working arrangements or space requirements will change.

JLL said flexible workspace operators are responding by increasing meeting capacity, investing in technology and developing services designed to support hybrid working.

JLL said the expansion of flexible workspace presents opportunities for property owners, developers and office operators, but requires different commercial strategies.

The consultancy recommends that landlords and developers consider partnerships with specialist operators rather than directly managing flexible office facilities.

Management agreements and revenue-sharing arrangements can allow landlords to retain control of their assets while participating in flexible workspace income.

For operators, JLL identifies two broad approaches: premium offerings built around prime locations, design and hospitality-led services, or higher-volume models focused on accessible pricing and wider geographic coverage.

The report also encourages corporate occupiers to move beyond choosing exclusively between traditional leases and flexible workspace, instead considering how different office arrangements can be combined to meet their requirements.

JLL concludes that flexible workspace has developed from a niche accommodation option into an increasingly established component of corporate real estate strategy across the Middle East and Africa.