Summary and analysis of the UAE'S current industrial real estate market conditions.
Insight
UAE Industrial Market Dynamics, Q1 2025
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Current market dynamics favour landlords, resulting in reduced incentives for tenants when it comes to negotiation lease terms.
Warehouse rents in Abu Dhabi and Dubai recorded increased of 10.9% and 12.5% each, reaching AED 401 per sq. m and AED 42 per sq. ft respectively in the first quarter.
For select industrial zones, demand is currently outpacing supply, resulting in waitlists for potential tenants. Developers are expected to continue launching new projects to fulfill demand.