UAE Industrial Real Estate Boom in Q1 2024

The new India-UAE trade agreement and the development of the upcoming Bharat Mart warehouse have helped maintain Jebel Ali Free Zone (JAFZA) as a well-established free zone for international trade in the UAE. This has led to a significant 26% annual increase in warehouse rents in JAFZA, reaching an average of AED 365 per sq. m. per annum.

To address the growing demand for quality industrial stock, developers are actively partnering to expand the supply. One such partnership is between Dubai South and Aldar to develop the Logistics District in Dubai South. This venture involves the construction of a Grade A build-to-lease logistics facility, encompassing approximately 24,000 sq. m. of gross floor area, with a targeted completion by the end of the year.

Abu Dhabi's industrial market has also witnessed robust demand in the first three months of 2024, benefiting from strong growth in the non-oil sector and the expanding e-commerce market. Rental rates across major submarkets, such as Khalifa Economic Zones Abu Dhabi (KEZAD) and the Industrial City of Abu Dhabi (ICAD), have experienced notable increases, driven by the limited availability of vacant Grade A spaces in Dubai and the strategic location and connectivity of these industrial areas.