The Russian Space 1 ship negotiates its expansion with the owners of buildings in Dubai

The Russian company Space 1 plans to double the area of ​​its service offices in Dubai by the end of 2024. RB.RU reported this head of the Space 1 project in Dubai Vladimir Bolshakov.

“The vacant space at the first Space 1 site in Dubai is almost zero, so we are considering expansion options between 2.5 and 3 thousand square meters,” said project director Bolshakov.

Space 1 already has 3 thousand square meters. m of service offices in Dubai in the Al Salam Tower business center near the Dubai Internet City metro station. These are workspaces created according to Russian Space 1 standards, with a capacity of 10 to 120 jobs and a cost of between $850 and $900 per month per job.

Bolshakov explained that clients can immediately move into a fully finished office and save themselves the need for additional repairs and maintenance, since the cost already includes furniture, corporate-class IT infrastructure, secure Internet access, coffee, cleaning, parking spaces and administrative tasks. support . Tenants of the site get access to a mobile app for card-free office access, help desk, printing service, meeting room booking and other services.

In half of the cases, Space 1 clients are Russian companies that decide to open representative offices in Dubai, another 50% of subtenants are international and local organizations.

“Our typical clients in this city are companies that are already established in Dubai and have between 20 and 30 employees, or new companies immediately entering the UAE market with plans to rapidly increase the number of staff. Additionally, Space 1 solutions are suitable for those who are currently expanding, hiring additional employees and who need to move quickly,” Bolshakov explained.

Space 1 is currently in talks with building owners in Dubai to lease the sites and convert them into serviced offices. Due to a shortage of high-quality Class A land, landlords are beginning to “screen” potential tenants, preferring larger international corporations over small businesses.

According to Space 1 estimates, demand for class A offices is currently higher than supply; Rate growth over the past year was approximately 20-25%.

Space 1’s expansion plans are justified. Whitewill Dubai Chief Operating Officer Olga Pankina told RB.RU that class A service offices are a very promising area for Dubai.

“Thanks to tax preferences, a large number of companies from around the world have moved to Dubai. There is a shortage of high-quality office space,” Pankina noted.

The expert added that, for example, class A offices in the Business Bay area cost around $900 per m2. m per year. Clients often take over a location and renovate it on their own, which slows down operations.