PHOTO
Demand for corporate housing in Dubai has increased, as more investments flow into the UAE and the workforce population expands amid government reforms and initiatives that seek to promote the country as a talent and investment destination.
In the past 12 to 24 months, the uptake of accommodations for staff in the education, hospitality, aviation and catering sectors alone has increased, according to Dubai Holding Asset Management. Dubai Holding is the investment vehicle of Dubai’s ruler Sheikh Mohammed bin Rashid Al Maktoum.
The company did not specify the percentage of growth in demand, but it said that new clients have been added and that renewals for corporate accounts have been “high”.
According to the company, enhancements to Dubai’s visa and investment policies are stimulating an influx of new businesses and talent, creating significant demand for corporate housing.
“Dubai Holding Asset Management’s residential leasing portfolio has witnessed renewed demand for professional housing and workers’ accommodation in 2022 for clients across the education, hospitality, aviation and catering sectors,” the company said in a statement.
Higher investment inflows
The UAE has rolled out a number of initiatives and reforms as it looks to cement its position as a global hub for businesses and talent. The strategy has led to significant growth in new business activity, investment inflows, as well as higher visitor arrivals.
As of the first quarter of the year, Dubai alone saw more than 24,662 businesses applying for a licence, up by 58% compared to the same period in 2021.
Foreign direct investment inflows into the country reached $20.7 billion in 2021, up by 4% from the previous year’s $19.884 billion, according to the UNCTAD World Investment Report 2022.
In the first ten months of the year, around 11.4 million travellers visited Dubai, registering a 134% growth from a year earlier. The number of students in Dubai’s private schools has likewise gone up, with the KHDA recording the highest number of private school enrolments in April at more than 300,000.
“The arrival of talent and investors from around the world due to our leadership’s commitment to strengthening Dubai’s business hub proposition is driving demand across our portfolio of professional housing and workers’ accommodations,” said Ahmed Alsuwaidi, managing director for residential communities at Dubai Holding Asset Management
As to what companies are looking for when providing accommodations for their staff, Alsuwaidi said that quality and convenience are among the top considerations.
“Quality housing is a major incentive for new professionals moving to the city. Companies are looking for communities that reflect a value for money, safety and convenience,” said Alsuwaidi.
“Real estate is one of key sectors that reflect the vibrant and dynamic economy of Dubai. While there is healthy demand in the market across the board, the growing demand for high-quality, conveniently located corporate housing nods to healthy economic activity across several sectors, including education and hospitality,” Alsuwaidi said.
(Reporting by Cleofe Maceda; editing by Mily Chakrabarty)
