Latest news with #GradeA
Arab News
5 days ago
- Business
- Arab News
Saudi Arabia, UAE lead global office quality fit-out investments: JLL
RIYADH: Saudi Arabia and the UAE are leading global investments in high-end office fit-outs, averaging over $2,400 per sq. meter, well above the global benchmark of $1,830, according to a new report. An analysis by real estate advisory firm JLL, based on data from 25 countries, found that companies in both Gulf countries are prioritizing workspace upgrades as part of broader return-to-office strategies. In the Middle East and Africa, corporate sentiment remains focused on targeted investments in design and functionality to support hybrid working models and enhance employee productivity. The report added that initiatives in Saudi Arabia such as the regional headquarters program are playing a crucial role in driving demand for Grade A office spaces in the Kingdom. It offers incentives such as a 30-year corporate income tax exemption and withholding tax relief, alongside regulatory support for multinationals operating in the Kingdom. Maroun Deeb, head of project and development services for Saudi Arabia and Bahrain at JLL, said: 'The general optimism toward investing in workspaces is likely to continue throughout 2025 as growth-oriented corporations invest in office fit-outs to support their hybrid workplace policies.' He added: 'Targeted investments to enhance employee experience will see an increased focus on workplace design, innovative technology solutions, and refurbishment opportunities amid growing interest in healthier, energy-efficient workspaces.' According to the analysis, companies in Saudi Arabia and the UAE are investing more on fit-outs to enhance workplace experience and employee performance. The report added that Saudi Arabia and the UAE are among the premium global markets for quality fit-out investments on par with London, New York and Sydney. JLL analyzed data from 25 countries and found that sustainability is a key driver in many relocation strategies and office fit-outs. Some 68 percent of organizations globally plan to increase investment in sustainability performance in the next five years. In the Middle East and Africa region, the sentiment is strongest in Saudi Arabia and the UAE, where 78 percent of corporate real estate leaders aim to enhance value through sustainability. The report, however, added that organizations in the region face challenges in meeting sustainability requirements due to limited suitable stock and high costs of upgrading older buildings. JLL added that early planning and integration of sustainability targets in relocation strategies and fit-out projects is crucial to address challenges. 'Offices that embrace innovative technologies and sustainable design principles and have higher levels of green certification command a premium, especially in Dubai,' said Gary Tracey, head of project and development services UAE at JLL. He added: 'Investments to improve sustainability will mitigate future operational expenses, remaining highly attractive to tenants seeking modern, efficient workplaces.' The report further said that supply chain disruptions in 2024 disproportionately affected the office market in the Middle East and North Africa, tightening project timeframes and escalating pricing. 'From environmental and smart building systems to adaptive workspaces and settings, supply chain engagement is critical in managing costs and allowing for innovation in future-focused workspaces,' said JLL. The report added that mechanical and electrical services now account for a higher proportion of office spend as stricter environmental and sustainability standards require more complex systems. With 39 percent spending on M&E services, Cairo ranks among the top cities globally for average proportion of costs per sq. meter for such services, followed by Dubai at 30 percent and Riyadh at 29 percent. In April, in a separate analysis, JLL said that the global office sector is rebounding as companies scale back hybrid employment options, increasing demand for workspaces. In that report, JLL revealed that 59 percent of organizations globally are increasing investments in design and fit-outs.
Khaleej Times
6 days ago
- Business
- Khaleej Times
Dubai office prices, rents jump by 24% in first 3 months of 2025
Dubai's office market will remain landlord-driven due to limited availability and sustained demand. According to analysts at Cavendish Maxwell, the shortage of Grade A office space is driving spillover demand, pushing prices higher in Grade B and C segments. 'Office sales prices rose 24.5 per cent year-on-year, while rental rates increased by 24 per cent, fuelled by limited availability and sustained demand, especially in Grade A accommodations. Additionally, ongoing shortages of Grade A space are driving spillover demand, pushing prices higher in the Grade B and C segments,' analysts said in the first quarter report. Dubai's office market maintained strong momentum in the first quarter of 2025 as the Dubai International Chamber reported a 39 per cent year-on-year increase in new foreign company registrations, including 11 multinational corporations and 42 SMEs. 'Dubai's office market entered 2025 with strong momentum, supported by steady economic growth, high levels of business formation, and resilient trade performance, all within a stable macroeconomic environment. This foundation is further strengthened by strategic infrastructure development, world-class connectivity, and a pro-business regulatory framework. Together, these factors have driven robust performance in the first quarter of 2025, reaffirming Dubai's status as a leading destination for regional and international capital despite ongoing geopolitical and economic uncertainties,' said analysts at Cavendish Maxwell. In the remainder of 2025, analysts see the office supply pipeline remains robust and may offer some relief to tenants. It is projected that approximately 215,000 sqm of new office space is expected to enter the market; however, actual completions are often lower than projected due to market factors, while pre-booking of units further reduces immediate availability. 'As a result, occupancy rates are expected to remain elevated throughout 2025, supported by strong and sustained demand that continues to outpace supply. Given this supply-demand dynamic, the market is expected to remain landlord-driven, with landlords maintaining significant leverage. Both sales and rental prices are projected to rise further throughout 2025, primarily due to ongoing supply constraints,' said analysts at the property consultant firm. It added that some tenants may downsize or relocate, while others might embrace flexible workspaces or pre-commit to pipeline projects. The office sales market reflected this positive sentiment, with approximately 900 transactions completed in Q1 2025, a 23.7 per cent year-on-year increase, driven by strong activity in both ready and off-plan segments. Notably, off-plan transactions surged, accounting for 18.9 per cent of all deals compared to just 8.1 per cent in Q1 2024, highlighting growing buyer confidence in future developments.
Trade Arabia
7 days ago
- Business
- Trade Arabia
Saudi Arabia, UAE lead office quality fit-out investments
The corporate sentiment in the Middle East and Africa (MEA) is geared towards targeted investments in overall space design and fit-outs to support return-to-office strategies, according to leading real estate expert JLL. This has accelerated demand for high-quality Grade A office spaces and fit-outs that enhance workplace experience and performance. In its latest 'EMEA Office Fit-Out Cost Guide 2025', JLL has identified Saudi Arabia and the UAE among the top countries globally with a high proportion of cost for high quality finishes, averaging more than $2,400/sqm, against the global average of $1,830/sqm, as workplace design becomes a component part of talent attraction and retention. The JLL EMEA Office Fit-Out Cost Guide 2025, which analyses data from 25 countries to provide insights into cost variations, drivers, sustainability concerns, and market sentiment, has also outlined the complex cost pressures for the EMEA construction sector in 2025, with office fit-out costs increasing in the last 12 months. The steady rise in costs reflects the growing trend of organisations (44%) in the region to increase office-based workdays over the next five years. Dubai also ranks among the top 20 cities globally in the City Cost Index, reflecting continued competition for Grade A spaces, while in Saudi Arabia, initiatives such as regional headquarters (RHQ) programme is also driving demand. JLL has also found that sustainability is a key driver in many relocation strategies and office fit-outs, with 68% of organisations globally planning to increase investment in sustainability performance in the next five years. In MEA, the sentiment is strongest in Saudi Arabia and the UAE, where 78% of corporate real estate leaders aim to enhance value through sustainability. Maroun Deeb, Head of Project & Development Services, Saudi Arabia and Bahrain at JLL, said: "The general optimism towards investing in workspaces is likely to continue throughout 2025 as growth-oriented corporations invest in office fit-outs to support their hybrid workplace policies." "Targeted investments to enhance employee experience will see an increased focus on workplace design, innovative technology solutions, and refurbishment opportunities amid growing interest in healthier, energy-efficient workspaces," he stated. Several factors are contributing to the current market dynamics. Supply chain disruptions in 2024 disproportionately affected the Middle East and North Africa, tightening project timeframes and escalating pricing. According to JLL, builders' works, which includes partitions, flooring, finishes, and joinery, typically accounts for the largest component of fit-out costs, ranging from 26% in Cairo and 36% in the UAE to 40% in Saudi Arabia. These costs are among the most susceptible to raw material prices and supply chain risks, it stated. Mechanical & Electrical (M&E) services now account for a higher proportion of office spend as stricter environmental and sustainability standards require more complex systems. Cairo (39%) ranks among the top cities globally for average proportion of costs per sqm for M&E services, while Dubai (30%) and Riyadh (29%) are on par with the global average cost of 29%. Technology integration is also pivotal to enhancing hybrid work environments across all office typologies, with companies in MEA investing in improved and extended AV systems. Gary Tracey, the Head of Project & Development Services UAE at JLL, said: "The demand for high-performance office spaces is intensifying in the UAE as stakeholders increasingly prioritise environmental considerations to drive asset value." "Offices that embrace innovative technologies and sustainable design principles and have higher levels of green certification command a premium, especially in Dubai. Investments to improve sustainability will mitigate future operational expenses, remaining highly attractive to tenants seeking modern, efficient workplaces," he added. JLL said the momentum for sustainable workplaces continues to surge in the region, driven by corporate commitments, evolving expectations, and stricter regulatory requirements. Companies are weighing the cost-benefits of relocation to newer Grade A buildings compared to upgrading existing assets. However, organisations in the region face challenges in meeting sustainability requirements due to limited suitable stock and high costs of upgrading older buildings. To address these challenges, early planning and integration of sustainability targets in relocation strategies and fit-out projects are crucial, it stated. Ahmed Hemmat, Head of Project & Development Services at JLL in Egypt, said: "In a climate of economic uncertainty, organisations that build flexibility and agility into planning will be better positioned to adapt their work settings to evolving workforce needs." "This also supports leasing decisions, as flex spaces optimise costs for landlords and occupiers and create a more engaging and productive work environment to support the needs of today's hybrid work model," he added. Despite the complex landscape of challenges and opportunities, office construction will remain active in the region.
Zawya
03-06-2025
- Business
- Zawya
Saudi Arabia, UAE lead office quality fit-out investments
The corporate sentiment in the Middle East and Africa (MEA) is geared towards targeted investments in overall space design and fit-outs to support return-to-office strategies, according to leading real estate expert JLL. This has accelerated demand for high-quality Grade A office spaces and fit-outs that enhance workplace experience and performance. In its latest 'EMEA Office Fit-Out Cost Guide 2025', JLL has identified Saudi Arabia and the UAE among the top countries globally with a high proportion of cost for high quality finishes, averaging more than $2,400/sqm, against the global average of $1,830/sqm, as workplace design becomes a component part of talent attraction and retention. The JLL EMEA Office Fit-Out Cost Guide 2025, which analyses data from 25 countries to provide insights into cost variations, drivers, sustainability concerns, and market sentiment, has also outlined the complex cost pressures for the EMEA construction sector in 2025, with office fit-out costs increasing in the last 12 months. The steady rise in costs reflects the growing trend of organisations (44%) in the region to increase office-based workdays over the next five years. Dubai also ranks among the top 20 cities globally in the City Cost Index, reflecting continued competition for Grade A spaces, while in Saudi Arabia, initiatives such as regional headquarters (RHQ) programme is also driving demand. JLL has also found that sustainability is a key driver in many relocation strategies and office fit-outs, with 68% of organisations globally planning to increase investment in sustainability performance in the next five years. In MEA, the sentiment is strongest in Saudi Arabia and the UAE, where 78% of corporate real estate leaders aim to enhance value through sustainability. Maroun Deeb, Head of Project & Development Services, Saudi Arabia and Bahrain at JLL, said: "The general optimism towards investing in workspaces is likely to continue throughout 2025 as growth-oriented corporations invest in office fit-outs to support their hybrid workplace policies." "Targeted investments to enhance employee experience will see an increased focus on workplace design, innovative technology solutions, and refurbishment opportunities amid growing interest in healthier, energy-efficient workspaces," he stated. Several factors are contributing to the current market dynamics. Supply chain disruptions in 2024 disproportionately affected the Middle East and North Africa, tightening project timeframes and escalating pricing. According to JLL, builders' works, which includes partitions, flooring, finishes, and joinery, typically accounts for the largest component of fit-out costs, ranging from 26% in Cairo and 36% in the UAE to 40% in Saudi Arabia. These costs are among the most susceptible to raw material prices and supply chain risks, it stated. Mechanical & Electrical (M&E) services now account for a higher proportion of office spend as stricter environmental and sustainability standards require more complex systems. Cairo (39%) ranks among the top cities globally for average proportion of costs per sqm for M&E services, while Dubai (30%) and Riyadh (29%) are on par with the global average cost of 29%. Technology integration is also pivotal to enhancing hybrid work environments across all office typologies, with companies in MEA investing in improved and extended AV systems. Gary Tracey, the Head of Project & Development Services UAE at JLL, said: "The demand for high-performance office spaces is intensifying in the UAE as stakeholders increasingly prioritise environmental considerations to drive asset value." "Offices that embrace innovative technologies and sustainable design principles and have higher levels of green certification command a premium, especially in Dubai. Investments to improve sustainability will mitigate future operational expenses, remaining highly attractive to tenants seeking modern, efficient workplaces," he added. JLL said the momentum for sustainable workplaces continues to surge in the region, driven by corporate commitments, evolving expectations, and stricter regulatory requirements. Companies are weighing the cost-benefits of relocation to newer Grade A buildings compared to upgrading existing assets. However, organisations in the region face challenges in meeting sustainability requirements due to limited suitable stock and high costs of upgrading older buildings. To address these challenges, early planning and integration of sustainability targets in relocation strategies and fit-out projects are crucial, it stated. Ahmed Hemmat, Head of Project & Development Services at JLL in Egypt, said: "In a climate of economic uncertainty, organisations that build flexibility and agility into planning will be better positioned to adapt their work settings to evolving workforce needs." "This also supports leasing decisions, as flex spaces optimise costs for landlords and occupiers and create a more engaging and productive work environment to support the needs of today's hybrid work model," he added. Despite the complex landscape of challenges and opportunities, office construction will remain active in the region. To ensure the success of fit-out initiatives, JLL recommends the need for greater collaboration and effective partnerships. From environmental and smart building systems to adaptive workspaces and settings, supply chain engagement is critical in managing costs and allowing for innovation in future-focused workspaces. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Zawya
02-06-2025
- Business
- Zawya
Saudi Arabia and the UAE lead global office quality fit-out investments as return to office strategies gain momentum: JLL
Saudi Arabia and the UAE are among the premium global markets for quality fit-out investments on par with London, New York and Sydney Sustainability is a top corporate driver in many relocation strategies and office fit-outs Cairo earns a top ranking among global cities for average proportion of costs per sqm for M&E services Dubai, United Arab Emirates – The corporate sentiment in the Middle East and Africa (MEA) is geared towards targeted investments in overall space design and fit-outs to support return-to-office strategies, according to JLL's new EMEA Office Fit-Out Cost Guide 2025. This has accelerated demand for high-quality Grade A office spaces and fit-outs that enhance workplace experience and performance. JLL's latest study has identified Saudi Arabia and the UAE among the top countries globally with a high proportion of cost for high quality finishes, averaging more than US$2,400/sqm, against the global average of US$1,830/sqm, as workplace design becomes a component part of talent attraction and retention. The JLL EMEA Office Fit-Out Cost Guide 2025, which analyses data from 25 countries to provide insights into cost variations, drivers, sustainability concerns, and market sentiment, has also outlined the complex cost pressures for the EMEA construction sector in 2025, with office fit-out costs increasing in the last 12 months. The steady rise in costs reflects the growing trend of organisations (44%) in the region to increase office-based workdays over the next five years. Dubai also ranks among the top 20 cities globally in the City Cost Index, reflecting continued competition for Grade A spaces, while in Saudi Arabia, initiatives such as Regional Headquarters (RHQ) Program is also driving demand. JLL has also found that sustainability is a key driver in many relocation strategies and office fit-outs, with 68% of organisations globally planning to increase investment in sustainability performance in the next five years. In MEA, the sentiment is strongest in Saudi Arabia and the UAE, where 78% of corporate real estate leaders aim to enhance value through sustainability. Maroun Deeb, Head of Project & Development Services, Saudi Arabia and Bahrain at JLL, said: 'The general optimism towards investing in workspaces is likely to continue throughout 2025 as growth-oriented corporations invest in office fit-outs to support their hybrid workplace policies. Targeted investments to enhance employee experience will see an increased focus on workplace design, innovative technology solutions, and refurbishment opportunities amid growing interest in healthier, energy-efficient workspaces.' Several factors are contributing to the current market dynamics. Supply chain disruptions in 2024 disproportionately affected the Middle East and North Africa, tightening project timeframes and escalating pricing. Builders' Works, which includes partitions, flooring, finishes, and joinery, typically accounts for the largest component of fit-out costs, ranging from 26% in Cairo and 36% in the UAE to 40% in Saudi Arabia. These costs are among the most susceptible to raw material prices and supply chain risks. Mechanical & Electrical (M&E) services now account for a higher proportion of office spend as stricter environmental and sustainability standards require more complex systems. Cairo (39%) ranks among the top cities globally for average proportion of costs per sqm for M&E services, while Dubai (30%) and Riyadh (29%) are on par with the global average cost of 29%. Technology integration is also pivotal to enhancing hybrid work environments across all office typologies, with companies in MEA investing in improved and extended AV systems. Gary Tracey, Head of Project & Development Services UAE at JLL, said: 'The demand for high-performance office spaces is intensifying in the UAE as stakeholders increasingly prioritise environmental considerations to drive asset value. Offices that embrace innovative technologies and sustainable design principles and have higher levels of green certification command a premium, especially in Dubai. Investments to improve sustainability will mitigate future operational expenses, remaining highly attractive to tenants seeking modern, efficient workplaces.' The momentum for sustainable workplaces continues to surge in the region, driven by corporate commitments, evolving expectations, and stricter regulatory requirements. Companies are weighing the cost-benefits of relocation to newer Grade A buildings compared to upgrading existing assets. However, organisations in the region face challenges in meeting sustainability requirements due to limited suitable stock and high costs of upgrading older buildings. To address these challenges, early planning and integration of sustainability targets in relocation strategies and fit-out projects are crucial. Ahmed Hemmat, Head of Project & Development Services at JLL in Egypt, said: 'In a climate of economic uncertainty, organisations that build flexibility and agility into planning will be better positioned to adapt their work settings to evolving workforce needs. This also supports leasing decisions, as flex spaces optimise costs for landlords and occupiers and create a more engaging and productive work environment to support the needs of today's hybrid work model.' Despite the complex landscape of challenges and opportunities, office construction will remain active in the region. To ensure the success of fit-out initiatives, JLL recommends the need for greater collaboration and effective partnerships. From environmental and smart building systems to adaptive workspaces and settings, supply chain engagement is critical in managing costs and allowing for innovation in future-focused workspaces. About JLL For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $23.4 billion and operations in over 80 countries around the world, our more than 112,000 employees bring the power of a global platform combined with local expertise. SEE A BRIGHTER WAYSM. For further information, visit About JLL MEA Across the Middle East and Africa (MEA) JLL is a leading player in the real estate and hospitality services markets. The firm has worked in 35 countries across the region and employs over 2000 internationally qualified professionals across its offices in Dubai, Abu Dhabi, Riyadh, Jeddah, Al Khobar, Cairo, Casablanca, Cape Town, Johannesburg and Nairobi. For further information, visit Media Contact: May Ong JLL MEA Nisha Celina | Janine Alamir Burson |
