The UAE coworking sector has transformed significantly in recent years as these spaces have evolved into dynamic environments catering to multiple audiences. Demand continues to grow, with the market expected to reach USD 105.75 million by 2029, but while the opportunities are rife, competition is high. As a result, coworking brands must adopt innovative strategies to get ahead and stay different.

Let us explore some of the factors driving change and how coworking companies can maximize their potential with a customer-centric approach.

New Trends and Shifting Dynamics

In 2024, Dubai’s office real estate market reached a total volume (GLA) of 107.8 million square feet, signaling the city’s increasing need for flexible, adaptable office solutions. Looking ahead, it is likely that many new office developments in Dubai will be leased before completion, indicating a potential shortage of quality office supply.

Based on the Bright Rich Dubai Commercial Real Estate Market Report in the first half of 2024, this shortage will persist until 2027. Particularly in coastal areas, where most development activity is concentrated around central locations such as DIFC, Sheikh Zayed Road, and free zones, the availability of leasable space is getting scarce.

This ongoing shortage is expected to drive further demand for coworking spaces. As businesses seek more flexible, scalable options, coworking spaces will become even more attractive for companies unable to secure long-term leases in prime locations, particularly startups, SMEs, and multinational companies.

Over time, coworking spaces have expanded beyond freelancers and startups, attracting large enterprises, multinational corporations, and hybrid teams. This shift has created a new set of expectations. Larger companies want flexible, professional environments, while startups and smaller teams often prioritize collaborative spaces that foster creativity. To remain relevant, coworking providers must offer a range of options, from private offices and meeting rooms to open, shared workspaces that encourage interaction and innovation.

Dubai is also witnessing a record-breaking number of new business registrations, and as more companies open their doors, there has been a noticeable shift toward serviced offices. These spaces offer flexibility and a quicker setup, making them an ideal choice for businesses looking to avoid the complexities of long-term leases and office fitouts.

Consequently, the market is seeing an increase in supply, with several major coworking players, such as iSpace, Space 1, The Executive Centre, RICE Offices, and Unbox, expanding their footprints. We see the same in Abu Dhabi, with players like Office Square and Cloud Space further contributing to the diversification of available coworking spaces.

Strategies to Attract and Retain Clients

Many UAE coworking spaces embrace biophilic design, enhancing aesthetic appeal and promoting well-being and productivity. Furthermore, ergonomic furniture, natural light, and flexible layouts that can be easily reconfigured are now essential elements in modern coworking design.

For coworking providers to stand out, the focus should be on designing spaces that cater to different work styles and offer variety. I believe in the power of flexibility—spaces should support diverse business functions, from quiet, private work areas to communal zones where collaboration happens organically.

With escalating competition, creating an exceptional customer experience is crucial. It is no longer about renting space; it is about providing a holistic experience that adds value to businesses. Personalization is key—offering tailored services, such as concierge support, custom meeting room setups, and personalized events, can significantly improve client retention.

A strong focus on community-building is equally important. Coworking spaces should be places where businesses and professionals not only work but also network, collaborate, and grow together. The client experience can be enhanced through regular engagement, such as hosting events or creating opportunities for clients to interact with one another. In my experience, creating a sense of belonging can be just as important as providing physical space.

In today’s hybrid work environment, technology should seamlessly integrate into the daily operations of coworking environments to facilitate smooth communication, booking systems, and collaboration tools. In the UAE, where businesses are often global and mobile, ensuring that coworking spaces are equipped with high-speed internet, smart building solutions, and advanced IT infrastructure is non-negotiable.

Coworking spaces must also embrace tech solutions that enhance the overall client experience. From contactless entry systems to AI-driven space optimization, technology can improve operational efficiency and create a better environment for clients and staff. The goal is a frictionless, intuitive experience that allows businesses to focus on what matters most.

Innovation and Agility

It is an exciting time for the UAE coworking sector; however, coworking spaces face increased competition and pressure to differentiate.

By focusing on adaptable designs, delivering exceptional customer experiences, and leveraging the latest technology, they can position themselves for long-term success. In a rapidly evolving landscape, coworking brands must be agile enough to evolve with it.

The author, Nitin Nadukandy, is founder and CEO of HTS Interiors.