A new study by the real estate consultancy Knight Frank showed strong growth in rents in the industrial and logistics sector in Dubai during the first half of 2024.
According to the Dubai and Abu Dhabi Industrial Markets Review Report for the first half of 2024 by Knight Frank, the highest rent growth was recorded in the Jebel Ali Industrial Area (Category II) at 38.5%.
The report noted that nearly 18 million square feet of new requirements for industrial and logistics assets were recorded, representing an increase of 185% over the first half of 2023.
The report predicts that Dubai will see new supplies totaling 660,000 square feet in 2024, and an additional 1.3 million square feet in 2025.
Regarding Abu Dhabi, the report showed that the Khalifa Economic Zones Abu Dhabi (KEZAD), which represents 55% of the industrial supply in the UAE, experienced strong demand for storage products. In the first quarter of this year, occupancy rates reached 88%.
Additionally, KEZAD recorded a trend towards longer lease commitments, with the average lease term rising to about 6 years compared to 4 years in 2022.
The rent for general warehouses in the 12 economic zones in KEZAD ranges from 320 to 450 dirhams per square meter, while the rent for cold storage ranges from 350 to 550 dirhams per square meter.
