After a difficult debut immediately following the Covid phase, “co-living” options in Dubai are now vying for more visibility with tenants.
As landlord attitudes change at a time when potential tenants are looking for less expensive accommodation, particularly among the younger generation, co-living spaces will become more common in the city. Dubai
Young people throughout the world are no longer need to live close to the office, according to Bass Ackerman, creator of Hive JVC, since alternative work methods including remote and flexible work have been propelled by the pandemic. “As a result, people are opting to live and work in distant locations.
Ackerman and the Hive were early adopters in the city of c-living. However, there was a time between 2020 and 2021 when it was believed that “co-” options, whether for working or living, would suffer due to the pandemic, with people being hesitant to share their homes with relative strangers.
Ackerman concedes that conditions were trying. Unquestionably, COVID-19 had an effect on average rents and occupancy rates for the co-living asset class, the analyst continued. The fact that Cushman & Wakefield stated that co-living rents and occupancy in North America, one of the main co-living markets, had decreased in line with traditional Class A urban asset rents is interesting.
Legislation “helps”
The increased regulatory pressure on co-occupation has, in Ackerman’s words, “benefitted co-dwelling assets along with short-term rental options like holiday homes as it has effectively decreased the supply of flexible, furnished living solutions.”
All of these will help the intended audience become more aware of the options for co-living. Market sources claim that landlords and developers are thinking about including specialized co-living choices in new construction. A developer source said, “It makes logical to build co-living capacity in our projects if we are establishing co-working space. The city’s population profile is constantly shifting, and some significant changes were seen in 2022.
