In the second half of 2013, average rents for Class 1 industrial and logistics property were up 18% year-on-year to AED 35 per sq. ft.
Over the same period, the best performing Class 1 districts were Dubai Investments Park (DIP) and JAFZA, where rents rose by 30% and 19%, respectively. By comparison, rental values in Al Quoz saw a relatively moderate annual increase of 9% to AED 38 per sq. ft.
Enquiries for 50,000 – 120,000 sq. ft. distribution facilities rose in the second half of 2013. However, due to high absorption rates in the preceding six months, there was little availability for units of this size.
In the first half of 2013, the number of enquiries for industrial and logistics property weakened across all sectors, with the exception of pharmaceuticals where they held steady. Not surprisingly, interest was strongest from light industrial/manufacturing and third party logistics firms, with the two sectors accounting for 33% and 25% of total enquiries. At 17%, food and beverage firms also showed a decent level of interest (up from 8% in the preceding six months).
Source : Knight Frank