JLL shares 2021 property trend insights for the Middle East
Adaptable spaces, flexible leases, tech adoption and sustainability to drive the regional property market in 2021
JLL has shared insights on the property trends which are expected to drive Middle East’s real estate industry in 2021, at its annual outlook event. According to the real estate investment and advisory firm, sustainability and tech adoption which have been accelerated during the pandemic and are likely to drive the real estate industry forward.
According to a statement from JLL, in 2021, office adaptations are likely to mitigate some of the reduction in demand arising from higher levels of homeworking.
In the short-term design JLL stated that the priority will be on “making do with what you have” for most corporates as cash preservation remains a top priority. However, in the long-term office adaptions are likely to drive demand for space, it said.
Dana Salbak, head of Research at JLL MENA, said: “Relaxing seating densities, and collaborative spaces are likely to be a more permanent feature in a post-COVID office environment. This will mean more meeting rooms, more video/VR space, and more space dedicated to green space as well as health and wellbeing. Office design will need to factor this in and support the strategy around an all-round best-in-class employee experience.”
However, the company sated that with retail real estate, dynamics have changed and there is growing demand for more flexible leases from retailers, especially with the rise of online channels.
“Flexible leases can be offered in various ways, ranging from a traditional lease with more break clauses to fully fitted-out space, ready to be used by an entrepreneur, with one months’ notice or space,” Salbak stated, adding that these formats are increasingly important for retailer and investor real estate strategies in a progressively dynamic environment.
Commenting on real estate for hotels, she stated: “Hotels have been exploring co-working spaces as an alternative to their meeting and event space, and the focus has increased and it is expected to stay in 2021. This can help hotels significantly strengthen their branding and boost income.”
According to JLL, the trend of co-working will reboot hotels as a one-stop shop. Large corporate occupiers will increase demand for co-working space around densely populated areas, and mobile workers will utilise touch-down points in hotels, particularly in Saudi Arabia and Egypt where long commutes are the norm, the firm stated during the virtual event.
“The year 2020 and the pandemic have reminded us of the fragility of our society and ecosystem, and have increased the focus on tech adoption, as well as sustainability and environmental, social, and corporate governance. To ensure business success, these elements must be at the heart of operating strategies and customer experience. Going forward, these themes will define the shape of the real estate recovery and of real estate investment over the coming years in the Middle East and beyond,” Salbak commented.
