The UAE’s warehousing and industrial real estate market is experiencing significant growth in 2024, driven by strong demand across key sectors such as logistics, storage and manufacturing. Both Dubai and Abu Dhabi are seeing robust activity, with expansions in warehousing and industrial hubs like Dubai South, Jebel Ali Free Zone (JAFZA), and Dubai Industrial City, as well as Abu Dhabi’s KEZAD Al Ma’Mourah and Mussafah.
As the supply of high-quality, Grade A warehousing and industrial spaces struggle to keep pace with surging demand, rental rates are on the rise. In Dubai, the warehousing and industrial sector has experienced significant growth, with average rents increasing by 13% year-on-year. Abu Dhabi’s warehousing and industrial market has also seen positive albeit moderate increases, with average rents rising by 5% year-on-year.
Developers and institutional investors are capitalising on this opportunity, with new projects aimed at meeting the evolving needs of businesses for modern, tech-integrated, and sustainable facilities. Overall, the demand for warehousing and industrial properties in Dubai and Abu Dhabi’s warehousing and industrial market is expected to remain strong, driven by strategic locations, economic growth, and limited supply.
Key Takeaways
- Rising Rents: Strong demand drives rents up by 13% in Dubai, 5% in Abu Dhabi.
- Supply Shortage: Expansions are underway, but demand outpaces supply.
- Tech & Sustainability: Growing focus on smart, energy-efficient facilities.
