While Dubai’s industrial and logistics real estate market remained relatively stable in the six months leading up to 2019, it continues to be challenging, with increased flight-to-quality and supply still outstripping take up, said an industry expert.
“We will continue to monitor market conditions going into 2019, providing our customers with expert insights to help them decide how best to maximize investment and returns,” added Andrew Love, partner and head of Investment and Commercial Agency at Cavendish Maxwell, an independent firm of chartered surveyors and property consultants.
Love was commenting on the firm’s “Dubai Industrial and Logistics Report for 2018”, which offers a comprehensive and unique outlook on Dubai’s overall competitiveness as a logistics hub, the infrastructure available, supply and demand, and market sector opportunities for growth and investment.
The report was compiled by the firm’s in-house Investment and Commercial Agency team, drawing data from its in-depth industry knowledge, in collaboration with its extensive client and partner portfolio.
Key sector insights
Demand for property in the industrial sector is being driven by SMEs across Dubai, many of which are seeking opportunities to relocate and benefit from the softer market conditions in an attempt to reduce their occupational costs.
The logistics/distribution and general trading industries accounted for over 60 percent of demand, with manufacturing also showing positive inquiry levels, testament to the competitiveness of Dubai for business.
Accounting for approximately 10 percent of the UAE’s economy, the logistics and transport industry’s market share far outperforms the wider region. Continued significant investments into this sector should provide the platform for future growth and ensure the industry plays an important role in the economy in the future.
Funds, Real Estate Investment Trusts (REITs) and high-net-worth individuals looking for opportunities are driving appetite for investment in the industrial and logistics sector of the property market. In the absence of good quality investment opportunities, investors with cash to spend are increasingly reviewing options that would not have been considered 12-18 months ago.
TradeArabia News Service
14/01/2019
