Demand for industrial and warehousing space witnessed a strong increase during the second half of the year.

After a prolonged period of subdued demand levels, which was carried through from 2018, market activity improved on the back of a spike in renewal, relocation and consolidation exercise. The entry of a number of international companies, especially in the engineering and manufacturing sector, and expansion activity by 3PL (Third Party Logistics) and e-Commerce companies were other factors that led to a strong increase in demand when compared to H1 2019. Most of these transactions were under discussion for the last few quarters and were concluded during H2 2019, supported by various proactive measures implemented by the Government such as reducing fees for business incorporation and relaxing FDI norms, among others.

 A healthy mix of small, medium and large sized transactions were observed across most micro-markets. Bulk of the demand was concentrated across locations such as Dubai South, Jebel Ali Free zone Authority (JAFZA), Dubai Investment Park (DIP) and National Industries Park (NIP). Demand drivers across these micro-markets varied depending on factors such as the nature of the business and warehousing specifications. The emergence of new concepts such as ‘cloud kitchens’ and ‘vertical farming’ has also had a positive impact on warehousing demand in the city.

Read the full report

Click here to read the Arabic report