Summary and analysis of UAE's current industrial real estate market conditions.
Insight
UAE Industrial Market Dynamics, Q2 2025
With limited available inventory, industrial tenants are primarily opting to renew existing leases. The market strongly favors landlords, resulting in minimal incentives being offered to occupiers.
Warehouse rates showed significant growth in Q2, with Abu Dhabi seeing a 22.4% rise to AED 470 per sq. m and Dubai experiencing a 19.9% increase to AED 46 per sq. ft.
Premium industrial locations commanded top market rates, with KEZAD leading Abu Dhabi at AED 500 per sq. m, while Dubai's centrally located Al Quoz achieved AED 65 per sq. ft due to its strategic positioning.
Demand exceeds supply across Dubai's key industrial zones including JAFZA, Dubai South, Al Quoz, and Dubai Investment Park, creating waitlists for prospective tenants. In response, developers are launching new projects.