As much as the Dubai residential property market impresses the global investors, Industrial and commercial property markets are also growing. The rate of leasing contracts increased 25.7% YoY for the Q3 of 2026, with the average cost per square foot for warehouses standing around AED 50.
Arabian Business reported that rents for industrial and logistics warehouses rose by 5.9% backed by the limited supply of warehouses with high-quality and modern features.
Why are Warehouses in Demand?
The spike in demand for warehouses and logistics facilities in Dubai are speculated to be due to the following reasons -
Growth of E-Commerce: More businesses that move into Dubai or operate online are in need of storage and distribution facilities to manage their logistics.
Logistics Expansion: International and local businesses expanding require operational space to source to or from Dubai.
Manufacturing Activity: The growth of manufacturing services as a response to the needs of online businesses and the establishment of international business drives demand.
Limited Availability: Even though there is no massive shortage of warehouses, modern businesses and logistic operations require modern warehouses that facilitate the requirements of the owners.
What are the areas seeing growth in warehouse transactions?
Al Quoz offers AED 90 per sq. ft. on average for Grade A warehouses. This is a +6% YoY change. The main reason for this demand is its central location in Dubai.
Dubai South’s average price per sq. ft. is AED 55, which is a +22% YoY increase. This increase is related to its close position to the port, airport, as well as industrial areas.
Dubai Industrial City, being associated with manufacturing, F&B production, and high-power facilities has increased its median price to AED 58 - 62 per sq. ft., a +16% YoY increase.
Is Industrial investments a good choice of investment?
With the growing demand for property in Dubai to facilitate logistics, industrial property investments could be a profitable move. But you should understand what a warehouse should offer to attract business owners in Dubai. With grade A industrial property and modern facilities being in high demand, this could be something property investors can capitalise on.
For investors who are looking for other opportunities beyond apartments, townhouses and villas in Dubai, this is a promising opportunity. But just like residential property investments, you should consider certain factors prior to committing to an investment.
Location - This is important to attract tenants. Consider connectivity, proximity to and from ports, airports and other suppliers.
Property Specs - Understand property’s capability to understand the type of operation it supports.
Tenant Demand - Understand the tenants in the market and what they are looking for.
Permitted Use - Understanding the permitted uses for this property.
Cost - The total cost of acquisition with service fees.
Even though the demand and the price per square foot has risen, this doesn’t mean that every and any industrial property investment would result in profitable ROI. Proper preparation and understanding how the market works help you to find and secure an industrial property deal in Dubai.
To achieve that, you require expert assistance from professionals who have been in the industry, connecting buyers, sellers and service providers on a daily basis. Reach out to Anarock Middle East for a conversation about your property investments in Dubai.