Dubai's industrial real estate sector is thriving
Industrial real estate in Dubai is currently seeing a positive trend in the market, according to a DIP official
Dubai’s Industrial and commercial real estate sector is seeing an upward trend, according to a Dubai Industrial Park (DIP) official.
“We faced a minor drop in occupancy on the warehousing side ... but we see that as part of a correction in the market,” said Saud Abu Al Shawareb, Chief Operating Officer of DIP, Gulf News reported.
Set in a prime location near the Al Maktoum International Airport and the upcoming Dubai South area, near the anticipated Expo 2020 site, DIP offers industries with the best place for all their distribution and logistics needs.
With high-end infrastructure and connections to Emirates Road, the park also provides investors with easy connections to other regional business hubs including Abu Dhabi, Saudi Arabia and Oman.
Al Shawareb said that DIP especially was getting good inquiries for new leases.
“Just last month we did around 80,000 square feet of warehouse [leasing]. That’s why I am calling it as correction — some people are downsizing or closing their companies, but at the same time we have new investors who want to centralise their operations," he said.
In regards to leasing, the COO said that there are no plans to set aside dedicated areas for third-party investors as to develop warehouses and other assets, and then lease them out.
He said: “Since we have six zones for each industry and based on the land, building or factory requirement of the investor, we allocate the land.”
“Because we don’t want to secure ready land and then have to wait for tenants to come, it’s better for us to lease.”
Based on Sharia agreements, leases can be held for up to 30 years, depending on investor preferences.