Warehouse transactions across Dubai have risen by 60 per cent year-on-year as e-commerce expansion pushes up demand for distribution and logistics space, according to Cavendish Maxwell.
The warehousing sector recorded 8,600 rental transactions in H1 2025, compared to 5,400 in the same period last year, the real estate advisory group and property consultant said.
Volumes rose by nearly 28 per cent against H2 2024, according to Cavendish Maxwell’s report on Dubai’s retail and warehousing market.
Dubai warehouse rents rise 20% as logistics demand hits record high
The research reveals that annual rents for warehousing jumped by as much as 20 per cent year-on-year, with accommodation in Jebel Ali commanding the increase. The average rental rise across Dubai was just over 14 per cent.
“Dubai is already firmly established as a key regional hub for distribution and logistics, and demand for warehousing is growing exponentially, driven by e-commerce expansion and resilient trade activity. The 60% rise in transactions comes from new leases and renewals, reflecting strong demand from new businesses and existing tenants, both international and local,” Vidhi Shah, Director, Head of Commercial Valuation, Cavendish Maxwell said.
Top five areas for Dubai warehouse rent increases
“Quality warehouses in strategic locations recorded the best performance in terms of rental increases, highlighting demand for modern accommodation close to major roads, ports and airports. With high occupancy rates, constrained supply and new e-commerce businesses constantly entering the market, we expect the sector to stay strong. However, when suitable premises at the right price aren’t available, tenants are increasingly seeking accommodation in neighbouring emirates,” Shah added.
Dubai’s top five areas for warehouse rent rises were Jebel Ali at 20 per cent, Ras Al Khor at 17.3 per cent, Umm Ramool at 16.6 per cent, Dubai Investments Park at 15.6 per cent and Dubai Industrial City at 14 per cent.
