Key Figures and Growth in Q3 2024, Dubai’s Commercial Real Estate Market

Rental rates across Dubai's industrial zones have risen sharply in 2024, with citywide rents increasing by 13% on average compared to the previous year. This is largely driven by the growing demand for modern, well-located spaces and the limited supply available. Notable increases in rental rates include:

Meanwhile, JAFZA (Grade A) facilities experienced a more moderate 5% increase, reflecting the area’s mature and stabilized market.

The demand for Grade A facilities—which feature advanced infrastructure, high ceilings, large floor plates, and efficient loading docks—continues to rise in strategic areas such as:

These modern facilities are crucial for companies in sectors such as logistics, e-commerce, and manufacturing, where efficiency and scalability are priorities. Dubai South, in particular, has seen a surge in demand due to its superior connectivity, leading to fierce competition for available space​.

With demand far outpacing supply, developers are responding with new projects aimed at expanding Dubai’s industrial and warehousing capacity. Major upcoming projects include:

These projects reflect the urgent need to address the supply-demand imbalance that is driving rental rates higher.

E-commerce continues to be one of the largest drivers of warehousing demand in Dubai. In 2024, e-commerce accounted for 40% of total industrial and warehousing demand, closely followed by sectors such as:

Rental rates in 2024 saw considerable variation across Dubai’s main industrial zones. A comparison of annual rents shows:

These figures indicate that newer industrial zones, such as Dubai Industrial City and DIP, are seeing faster rental growth, thanks to increasing demand from logistics and e-commerce businesses​.

Key factors driving Dubai’s warehousing and industrial market include:

With Dubai’s commitment to becoming a global smart city, both sustainability and technology are now integral to the industrial real estate market. The push for smart warehouses—which integrate automated logistics systems, energy-efficient designs, and green building certifications—is increasing. This trend is expected to provide a competitive advantage to developers and landlords who invest in environmentally conscious projects.

As rental rates rise and demand outstrips supply, developers and investors have a prime opportunity to capitalize on the market’s rapid growth. Some areas of high potential include:

Dubai’s industrial and warehousing sector continues to thrive in 2024, supported by rising demand, limited supply, and technological advancements. As rental rates surge and more businesses seek out strategically located, modern facilities, the market offers substantial opportunities for investors and developers. With over 40% of demand coming from logistics and e-commerce sectors, and Grade A facilities commanding premium rents, now is the time to explore investments in Dubai’s rapidly evolving commercial real estate market.

By focusing on strategic locations, sustainable practices, and technological innovations, businesses and investors alike can unlock the immense potential that Dubai's industrial sector holds.

With over 20 years of experience, RedRock Real Estate offers expert guidance in identifying top investment opportunities, sale, resale, or long-term lease  and providing property management services. Our team ensures your investments are aligned with Dubai’s growing industrial market, helping you maximize returns with sustainable and tech-driven solutions. Contact us to make the most of Dubai’s booming commercial real estate sector.