The Roads and Transport Authority (RTA) and Dubai Government Human Resources (DGHR) Department’s recent studies found that adopting flexible working hours with a two-hour start window and allowing four to five remote workdays per month for public and private sector employees could cut morning peak travel time by 30 per cent.

We are all living and breathing the rush-hour traffic issues, and its impact is being felt both in the commute to and from the office, and throughout the day with increased travel time between physical meetings. This positive initiative sits alongside major road network initiatives to ease traffic flow.

With both public and private sectors being encouraged to adopt and expand flexible working hours and hybrid working policies, how might this impact the Dubai office market? Let’s consider not only the occupancy but also the set-up of the office.

Demand

Introducing more remote days and flexibility is expected to have little impact on office demand. This is because the demand for office space in Dubai is largely underpinned by visa quotas. Typically, companies operating in physical office space must have 9 sq m per employee. Whilst this requirement continues to remain in place, companies will have to retain the minimum amount of leased space for their visa requirements. However, we may see a change in how occupiers effectively utilise their space, potentially allocating more room for breakout spaces and collaborative areas. Our head of commercial agency Toby Hall shared with us his take on the market and said, “Dubai’s office market is already experiencing an unprecedented level of activity, with record-breaking demand driving occupancy and rental rates across top business districts amid tight supply of high-quality stock.”

Fit out

The office is increasingly being seen as a place for colleagues to come together and collaborate to break down silos and traditional working set-ups. Few people physically occupying an office space presents an opportunity to revisit office fit-outs and move away from cellular working spaces and dedicated desks.

According to Max Hughes, our head of project management, achieving the right office fit-out is essential for fostering a productive work environment, as well as attracting and retaining employees. He says, “Over the past five 5 years, we have observed a significant rise in collaborative office designs. Features such as hot-desking, spacious break out areas, and pods for online meetings are becoming increasingly common.” 

Business Decision

A move to more flexible / hybrid working is ultimately a business decision unless mandated by the government. Making the switch may have the desired effect on reducing traffic but maximising the benefit will require companies to look at how its different teams / individuals are impacted.

Not everyone’s home environment enables productivity. Some employees are constrained by parental obligations, child or elderly care. Meanwhile, others might rely on carpooling services which may offer limited flexibility.

Companies will need to consider the above, among others, and make crucial changes to their workplace practices to ensure a seamless experience for all.

The Savills View

The recommendations set out by the RTA and DGHR study mirror that of many occupiers who engage with Savills. However, this may not be the best approach for all businesses - company policies ultimately reflect company needs. Several occupiers have already adopted a hybrid solution to offer staff flexibility between home and office but they recognise the crucial importance of the office environment. Offices remain a daily workplace but are increasingly more a vehicle for collaboration. The office also remains an important hub for creating and maintaining a company’s culture and ability to develop talent.

Paula Walshe, our head of office tenant representation sums it up, “Many occupiers already have some form of flexible working policy but also recognise the importance of bringing staff together in the office. Our clients are looking to provide a workspace staff want to be in and a place that fosters a positive work environment.”