The First Phase Of The Innovation Hub Is Home To Google, HP, Gartner, China Telecom, And Other Companies.
The Innovation Hub Phase 2 in Dubai Internet City has officially begun construction, according to TECOM Group’s Monday announcement. The update was made public at a time when a significant number of foreign businesses and investors were. That is drawn to Dubai by its business-friendly laws.
According to a press release, the Group is growing its leasing portfolio to meet the market’s rising demand for commercial real estate in Dubai. Which is being supported by the emirate’s economic development and the government’s pro-growth policies.
The Dh442 million new investment highlights TECOM Group’s dedication to diversifying, adjusting, and adding international businesses to its portfolio. Customers will be able to choose from modern office spaces, high-end commercial office buildings, and headquarters built to their requirements.
CEO of TECOM Group Abdulla Belhoul stated: “TECOM Group remains a foundation for Dubai’s commercial hub offer. Economic development is accelerating, investor, and new regulatory frameworks. Ease of doing business is strengthening corporate confidence. Due to an infusion of new businesses and talent, we are seeing the results of our leadership’s economic diversification plan reflected in the performance of our commercial and industrial real estate portfolio this year.
“Across our portfolio, our current clients are growing their businesses, and fresh foreign investment is also coming in. High-quality commercial premises are needed, and specialized solutions like the Innovation Hub answer this requirement. Enhancing Dubai’s status as a desirable worldwide business and talent hub. It also confirms TECOM Group’s position as the leading owner of commercial real estate in the emirate.
Outstanding results for TECOM in 2022
The third quarter of 2022 financial results for TECOM Group showed that the commercial real estate sector was on the rise. Revenue increased 12.48% year over year (YoY) to Dh490 million led by higher occupancy levels throughout the portfolio. Particularly in the office, warehouse, and worker accommodations.
With 2 upscale office buildings, four boutique offices, retail spaces, and more than 800 parking spots. The Innovation Hub Phase 2 increases TECOM Group’s asset base. The Innovation Hub Phase 2 will offer more than 355,000 square feet of gross leasable space when it is finished in 2024.
Moreover, The Innovation Hub was established in 2018, and its initial phase is almost completely occupied. Giving regional bases to major giants including Google, Hewlett-Packard, Gartner, and China Telecom. The Innovation Hub project, is still in the planning phases. That will provide the Group’s portfolio with more than 1.2 million square feet of space for technology, education, and new media companies of all kinds.
Under Dubai Internet City, TECOM Group has developed an international economic and technological center. It now stands for the whole community of Fortune 500 businesses, SMEs, start-ups, and business owners. Motorola Solutions and Intel are recent arrivals, and longtime clients 3M, Visa, and Meta just moved to new offices. Additionally, there are around 15 innovation hubs in Dubai Internet City.
Ammar Al Malik, Executive Vice President – Commercial Leasing, TECOM Group PJSC, made the following statement on behalf of Dubai Internet City: “Dubai’s pursuit of a knowledge and innovation economy depends on a strong technological foundation. For more than 20 years, Dubai Internet City has provided the necessary atmosphere and infrastructure for the entire IT community to congregate. Customers may get started right away with the help of facilities like our Innovation Hub, which is ready for use. By enhancing our district’s commercial offerings to satisfy the Emirate’s expanding corporate hunger. We will benefit our global community by attracting people and businesses that are committed to innovation.
The number of new inhabitants and licenses in the Emirate is increasing. Which is driving demand for commercial leasing, according to the CORE Dubai Market Report Q3 2022. According to the data, citywide office occupancy rates reached their highest point since the peak in 2014 in the third quarter. Rising to 83 percent from 78 percent the previous year.