Growing logistics space demand fuels Dubai’s commercial property boom
Demand for industrial and commercial property continues to grow – the sector is already the best performing within the city’s real estate space - due in no small part by an increased need for logistics space.
In an update, property services firm Cluttons stated: “Key areas such as Jafza [Jebel Ali Free Zone Authority] and onshore locations such as DIP [Dubai Investments Park] continue to command a great share of occupier interest.”
“We have seen an ongoing trend for large third-party logistics occupiers — including RSA logistics, Kuehne + Nagel, RHS logistics, CPL, Mohebi Logistics and Panalpina — moving to, and expanding their operations, in Dubai South, pre-empting the expansion of Al Maktoum International Airport and the World Expo in 2020.
“Build-to-suit facilities have increased in popularity over the last 12 months, with Dubai South and Jafza being the focus of such activity. The government has been quick to react to increasing demand and has moved to support growth, recently announcing that international developers and investors will be permitted to buy land in key freehold areas of Dubai South, although it is not yet known what use permissions will be available.”
The report also suggests that the Dubai Industrial Strategy is spurring the development of industrial and commercial property, aiding logistics companies as they eye up real estate in the city.
SOURCE: [Gulf News]