Real Estate - Market Insights

• Near-full occupancy across established warehousing zones continues to support rents despite softer new leasing activity.
• Logistics, manufacturing, supply-chain localisation to sustain demand; limited Grade A availability restricts occupier choice.
• Dubai warehouse rents rise 6.8% yearly and 2.3% quarterly, with average rents at AED 49/sq. ft.

Dubai warehouse rents have been supported by nearly full occupancy and limited availability of Grade-A space. The market is tight, but caution persists: established occupiers remain committed to existing facilities even as they reassess expansion plans.

Space take-up from new companies entering the market has slowed in recent months following elevated geopolitical uncertainty. Enquiry levels, however, remain largely stable, suggesting activity could rebound quickly should regional tensions ease.

Interest from institutional and alternative capital to develop and acquire high-quality warehouse assets remains strong. A few such investments are currently under due diligence. Most of these funds have global footprints, which could help attract new entrants to the region to occupy the warehouse space once these projects are completed.

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