The United Arab Emirates (UAE) has witnessed a transformation in its business environment over the past decade. As part of this evolution, the demand for flexible workspaces has surged, driven by the rise of startups, freelancers, digital nomads, and multinational corporations embracing hybrid work models. This shift has made co-working spaces an attractive investment opportunity across cities like Dubai, Abu Dhabi, Sharjah, and Ras Al Khaimah. However, before launching a new co-working venture, investors must conduct a comprehensive feasibility study to determine whether the business is viable, scalable, and compliant with regulatory frameworks in the UAE.
This blog explores the key components of a feasibility study for co-working spaces, identifies emerging trends in the UAE’s flexible workspace sector, outlines market potential, and explains how Aviaan can support entrepreneurs and investors throughout the process.
Why Start a Co-working Space in the UAE
The UAE is a magnet for global talent, startups, SMEs, and large corporations. Its world-class infrastructure, low-tax regime, and diverse expatriate population make it ideal for flexible office solutions. Several factors are currently fueling the expansion of co-working spaces in the UAE:
Rapid growth in freelancing, remote work, and entrepreneurship
Rise of digital startups and incubators
Increased demand for cost-effective alternatives to traditional office leases
Strong support from free zones offering startup-friendly regulations
Corporate interest in hybrid work models and team pods
Dubai and Abu Dhabi have positioned themselves as regional innovation hubs, attracting tech startups, content creators, consultants, and solopreneurs. Flexible workspace operators like WeWork, Astrolabs, Nook, and Letswork are thriving, yet there remains room for niche and sector-specific co-working offerings.
What is a Feasibility Study for a Co-working Space
A feasibility study is a structured analysis that evaluates whether launching a co-working space in a specific location within the UAE is commercially viable, legally permissible, and financially sound. It includes market research, competitive analysis, financial projections, operational strategies, and risk assessments.
The objective is to answer key business questions:
Is there sufficient demand in the target area for co-working facilities?
What are the prevailing pricing models and service expectations?
Who are the target customers and what features do they value most?
What are the licensing requirements from local authorities or free zones?
What are the startup and recurring operational costs?
How long until the project breaks even and becomes profitable?
Key Components of a Feasibility Study for Co-working Spaces in the UAE
1. Market Research and Demand Analysis
The feasibility study begins with a detailed examination of local demand drivers:
Demographic and psychographic profiles of the target audience
Behavioral trends in remote work, freelancing, and startup ecosystems
Demand for private offices vs. hot desks vs. meeting rooms
Preferred locations – city centers, free zones, residential areas
Interest in value-added services like high-speed internet, printing, events, and networking
For instance, in Dubai, neighborhoods like Business Bay, JLT, Al Quoz, and Dubai Silicon Oasis attract different profiles—from creatives to fintech professionals. A good feasibility study will map these personas to the type of co-working space being planned.
2. Competitive Landscape and Gap Analysis
Understanding the competition is crucial for positioning and differentiation. The feasibility study should:
Identify direct and indirect competitors in the target area
Analyze their service offerings, pricing, occupancy levels, and customer reviews
Assess what differentiates successful operators from those struggling or exiting
Identify market gaps – such as women-only spaces, wellness-focused coworking, or industry-specific hubs
This analysis will help define the unique selling proposition (USP) and help avoid over-saturated niches.
3. Location Strategy and Real Estate Assessment
Location is the cornerstone of any co-working business. The feasibility study should evaluate:
Footfall, visibility, and accessibility of potential sites
Proximity to business hubs, metro stations, and residential communities
Rental and fit-out costs per square meter in commercial and mixed-use buildings
Availability of licenses and approvals in the chosen zone (Mainland vs. Free Zone)
This step often includes site visits, lease negotiations, and collaboration with real estate consultants.
4. Financial Feasibility and Revenue Model
The financial section evaluates startup costs, operational expenses, and revenue generation capacity. It includes:
Cost of interior design and fit-out per seat
Monthly operational expenses – rent, utilities, salaries, maintenance, internet, software
Revenue models – hot desks (daily/weekly/monthly), dedicated desks, private cabins, meeting room rentals, event space
Membership tiers and pricing strategy
Break-even analysis, IRR, NPV, and payback period
Sensitivity analysis for occupancy rates, price changes, and marketing costs
Typical co-working spaces in the UAE aim for a break-even point within 18–30 months based on location and size.
5. Legal and Regulatory Framework
Starting a co-working space in the UAE requires compliance with several regulations:
Trade license from the Department of Economic Development (DED) or Free Zone Authority
Commercial lease agreements adhering to RERA or respective free zone laws
Health, safety, fire, and IT infrastructure approvals
VAT registration and compliance
Zoning laws restricting types of activities in certain buildings
Some free zones like DMCC, Dubai Internet City, or TwoFour54 provide flexible coworking licensing, making them attractive options.
6. Operational Planning and Staffing
A well-defined operational strategy enhances efficiency and customer satisfaction. The feasibility study must detail:
Required staffing levels – community managers, IT support, cleaners, security
Technology and infrastructure needs – internet bandwidth, access control, CRM
Facility management and service provider contracts
Opening hours, security protocols, COVID-19 safety standards
IT systems for membership management, bookings, invoicing
It should also outline processes for handling walk-ins, scheduling events, managing complaints, and providing concierge services.
7. Marketing and Customer Acquisition Strategy
Brand awareness and lead generation are vital in a competitive coworking market. The feasibility study should include:
Digital marketing strategy – SEO, Google Ads, social media, email campaigns
Partnerships with accelerators, incubators, chambers of commerce
Referral programs and corporate tie-ups
Event-based marketing – hosting business breakfasts, networking nights, training workshops
Customer retention strategies through loyalty programs, surprise perks, and flexible plans
8. Risk Assessment and Mitigation Strategy
The feasibility report should also identify potential risks such as:
Over-dependence on a single customer segment
Low occupancy rates
High fixed rental costs in slow seasons
Regulatory changes or economic downturns
Competitive price wars and margin erosion
The study should propose mitigation plans like subleasing options, dynamic pricing, or alternative revenue streams such as podcast rooms, food kiosks, or storage rentals.
Trends Impacting the Future of Co-working in the UAE
A feasibility study must stay aligned with industry trends that influence long-term success:
Hybrid work models adopted by enterprises
Demand for wellness-oriented and biophilic designs
Rise of AI and IoT for space optimization
Increasing need for podcast studios, video conferencing, and silent work pods
Demand for women-friendly, sustainability-driven, and pet-friendly spaces
Integration with digital nomad visas and long-stay expat programs
How Aviaan Can Help with Your Co-working Space Feasibility Study
Aviaan is a trusted consulting firm in the UAE offering end-to-end feasibility study services tailored to the real estate and flexible workspace sector. Our in-depth local expertise and research-driven methodology make us the ideal partner for evaluating your co-working business opportunity.
We support investors, entrepreneurs, and developers with:
Customized market research and demand analysis
Competitor benchmarking and SWOT assessments
Financial modeling, revenue projections, and risk analysis
Location scouting and lease advisory
Regulatory compliance guidance with DED, Free Zones, and RERA
Operational strategy design including staffing, tech, and SOPs
Marketing strategy aligned to target audience behavior
Whether you’re setting up a boutique co-working space in Downtown Dubai or a large shared office in Sharjah, Aviaan ensures that your business plan is backed by accurate data, strategic insight, and compliance assurance.
Case Study 1: Boutique Co-working Hub for Creatives in Al Quoz, Dubai
Client: A group of designers wanted to convert a warehouse in Al Quoz into a co-working and art-sharing space.
Challenge: Understanding demand for niche co-working spaces and dealing with zoning regulations.
Solution: Aviaan conducted a location-specific feasibility study covering footfall, target customer behavior, competitor offerings, and fit-out cost analysis. We helped the client apply for the appropriate trade license and designed a flexible pricing model that included event-based revenue.
Outcome: The space launched with 70% occupancy and grew to full capacity within six months. Today, it operates as a community hub with regular workshops and gallery exhibitions.
Case Study 2: Corporate Co-working Space in Abu Dhabi Free Zone
Client: A real estate firm planned to open a high-end co-working facility targeting corporate teams in Abu Dhabi Global Market (ADGM).
Challenge: Validating demand among large firms for shared workspaces in a highly regulated zone.
Solution: Aviaan carried out B2B surveys, analyzed ADGM licensing policies, and prepared a detailed financial feasibility report. Our team assisted with interior design planning, space optimization, and pre-launch digital campaigns.
Outcome: The facility secured three corporate tenants before launch and achieved break-even in under 18 months.
Conclusion
Launching a co-working space in the UAE presents exciting opportunities—but only for those who do their homework. A robust feasibility study is essential to understand demand, estimate costs, avoid regulatory pitfalls, and ensure profitability. From market research and licensing to financial modeling and launch strategy, every step should be grounded in data and driven by local expertise.
Aviaan stands ready to guide your co-working venture with precision, insight, and professionalism. Let us help you make confident, informed decisions and turn your co-working vision into a high-performing reality.
Contact Aviaan today for a customized feasibility study for your co-working business in the UAE.
Related Sights:
Market Research for a Bakery in Dubai, UAE
Market Research for a Catering Company in Dubai, UAE
Market Research for a Convenience Store in Dubai, UAE
Market Research for a Clothing Boutique in Dubai, UAE
Market Research for a Department Store in Dubai, UAE
Market Research for a Florist in Dubai, UAE
Market Research for a Furniture Store in Dubai, UAE
Market Research for a Jewelry Store in Dubai, UAE
Market Research for a Sporting Goods Store in Dubai, UAE
Market Research for a Toy Store in Dubai, UAE
