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Dubai:Logistic, industrial sectors to grow in 2016

The outlook for both the logistics and industrial sectors looks steady for 2016, according to Core UAE

Dubai's logistics and industrial sectors look promising for 2016.
Dubai's logistics and industrial sectors look promising for 2016.

The outlook for both the logistics and industrial sectors in Dubai during 2016 looks likely to continue to be steady, according to Core UAE - associate of Savills. 

The Dubai Industrial Market H2 2015 report highlights the strength of both industries, despite increasing economic uncertainty and falling oil prices.

The report states: "Unparalleled connectivity, stable rental rates, a significant pipeline of available land and built space; the ability to build high quality, high specification supply on competitive timelines together with flexible lease terms are likely to ensure that Dubai continues to dominate the regional logistics and industrial sectors."

The manufacturing, transport and logistics sectors combined are the largest contributors to Dubai's GBP, accounting for around 30% of all income.

Meanwhile, industrial zone rental rates in Dubai throughout 2015 were broadly stable across more of the older locations with newer areas such as Dubai South, DIP and DIC showing marginal growth.

And, industrial land sale prices grew marginally in older areas due to the shortage of supply. while never industrial areas were able to maintain their sale prices owing to the infrastructure and locational advantages that they offer.

David Godchaux, CEO of Core Savills, said: "People typically look at the residential or office markets, while the industrial sector is often disregarded by many investors. But when they look at the returns in Dubai, where there is a shortage of quality supply, realitvely strong demand and infrastructure in place, it is certainly a market which investors should not overlook.

"Where you may expect the market to suffer due to the low oil prices and economic uncertainty, the industrial sector in Dubai is still very strong and resilient, largely due to its prime location as a hub for the surrounding area; the quality infrastructure and the logistics in place.

"In Dubai there is a limited supply of quality logistic space and decent long term returns can be achieved by those ready to invest at an early stage of development, or in areas of high demand."


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