Cushman & Wakefield Core
  • Rent
  • Buy

Services

  • All Services
  • Capital Markets
  • Project & Development Services
  • Valuation & Advisory
  • Strategic Consulting
  • Agency Leasing
  • Tenant Representation
  • Global Occupier Services
  • Property Management

Industries

  • All Industries

Case Studies

  • All Case Studies
  • Most Recent
  • Reports & MarketBeats
  • Thought Leadership
  • News
PeopleAbout Us
ARالعربيةContact
Cushman & Wakefield Core
PeopleAbout Us

Guides

Area GuidesTower Guides

Company

Case StudiesCareersC&W Global Homepage
Contact Us
HomeInsightsReports & MarketBeatsMARKETBEAT- Industrial Q3 2025, Abu Dhabi, UAE

04 November, 2025

MARKETBEAT- Industrial Q3 2025, Abu Dhabi, UAE

Abu Dhabi’s industrial market continues to see strong demand, supported by an improving business ecosystem and government incentives such as rental rebates and subsidised utilities.

Download Report

ABU DHABI’S LOGISTICS AND INDUSTRIAL RENTS CLIMB 13% YoY

Abu Dhabi’s industrial market continues to see strong demand, supported by an improving business ecosystem and government incentives such as rental rebates and subsidised utilities. Lower operating costs compared to Dubai, availability of Grade A options across free zones and mainland areas, and proximity to Dubai are attracting both spillover demand and new international entrants. These factors reinforce Abu Dhabi’s position as a key regional hub for logistics and light industry. Demand is broad-based, led by supply chain and logistics operators, alongside continued strength from the oil and gas sector and growing activity in manufacturing and SMEs focused on downstream and export-oriented industries. Rents continue to rise across most districts, with the sharpest YoY increases in KEZAD Al Ma’mourah (+27%), ICAD (+18%), Mussafah (+12%), and ADAFZ (+9%). The market remains two-tiered, with premium international-grade stock recording stronger gains than older industrial areas. Despite several upcoming projects by KEZAD, MSM, Radius, and Aldar, international-grade warehousing remains limited, concentrated in KEZAD, Abu Dhabi Business Hub, Al Markaz, and ADAFZ. New projects such as Khalifa Logistics Park and KEZAD Metal Parks are expected to provide some relief, with benchmark rents averaging around AED 490 per sqm per year.

DEMAND CONTINUES TO FAR EXCEED SUPPLY

Abu Dhabi’s logistics market is set for a supply surge between 2025 and 2028, mainly across KEZAD, Musaffah, and ADAFZ. The largest phase in Q4 2025 will add over 335,000 sqm of speculative space through projects such as Khalifa Logistics Park Musaffah 1, KEZAD Free Zone Phase 3, and KEZAD Metal Park. While these will ease short-term shortages, tight occupancy above 95% means the market will remain undersupplied. A further 110,000 sqm is due in 2026 across Musaffah and KEZAD Al Ma’mourah, with additional projects at ADAFZ through 2027– 2028 sustaining availability. The mix of speculative and build-to-suit projects reflects Abu Dhabi’s strategy to boost capacity while meeting specialised demand.

Authors

David Short

Head of Abu Dhabi

Commercial Sales & Leasing

Prathyusha Gurrapu

Head of Research

Research

Get in Touch

Share this Insight

Subscribe to the latest Insights and Research

Cushman & Wakefield Core

As a global commercial real estate services leader with 53,000 professionals worldwide, we will never settle for the world that's been built, but relentlessly drive it forward for our clients, colleagues and communities.

Quick Links

  • Services
  • Properties
  • Insights
  • Contact Us
  • Careers

Popular Searches

  • Office for Rent
  • Warehouse for Rent
  • Office for Sale
  • Showroom for Rent
  • Dubai (Head Office)

    Level 1, Building 4, Dubai Hills Business Park, Dubai Hills Estate, Dubai, UAE

  • Abu Dhabi

    Office 1003, Centro Capital Centre, Al Khaleej Al Arabi St, Abu Dhabi, UAE

  • Egypt

    Office PO-03, Soil Spaces, Building B1, Mivida Business Park, New Cairo, Egypt

  • Qatar

    15th Floor, Tornado Tower, West Bay, Doha, State of Qatar

© 2026 Cushman & Wakefield Core. All Rights Reserved.

Privacy PoliciesSitemap
How can we help?

Related content

View All

Reports & MarketBeats

31 August, 2026

Abu Dhabi Mid-Year Residential & Office Market Update H1 2026

Read More

Reports & MarketBeats

17 August, 2026

Dubai Mid-Year Residential & Office Market Update H1 2026

Read More

Reports & MarketBeats

29 July, 2026

Marketbeat- Residential Q2 2026, Abu Dhabi, UAE

Read More