In­dus­trial de­mand shifts base to Dubai South

The Pak Banker - - BUSINESS -

De­mand in Dubai's in­dus­trial mar­ket re­mained buoy­ant in the first six months of 2016, with oc­cu­piers mov­ing and ex­pand­ing their op­er­a­tions in greater num­bers to­wards Dubai South, pre-empt­ing the ex­pan­sion of Al Mak­toum In­ter­na­tional Air­port and the Expo 2020, ac­cord­ing to Clut­tons.

With the sea­sonal push for lo­gis­tics con­tracts head­ing into Q3, areas such as Jebel Ali Free Zone (Jafza) and on­shore lo­ca­tions such as Dubai In­vest­ments Park con­tinue to com­mand a great share of oc­cu­pier in­ter­est.

Faisal Dur­rani, head of re­search at Clut­tons, said: "Rents for Class A units in areas around Al Mak­toum In­ter­na­tional Air­port now stand at Dh60 psf, the same level as at Dubai Air­port Free Zone, which goes to show the ris­ing pop­u­lar­ity of areas to­wards the new air­port, where the next stage of ex­pan­sion an­nounced in the near term."

Clut­tons' re­search shows that Dubai's most ex­pen­sive area for Class A and Class B in­dus­trial space is Sil­i­con Oasis, where rents stand at Dh77 psf and Dh65 psf re­spec­tively. Jebel Ali In­dus­trial Area re­mains the most com­pet­i­tive area for Class A space with rents stand­ing at Dh35 psf, while sec­ondary space at Jebel Ali Free Zone is the city's low­est at Dh24 psf. Ac­tiv­ity lev­els are also ris­ing in new lo­ca­tions across the city, in­clud­ing Dubai Science Park, where a sec­ond phase of ware­house space has been com­mis­sioned and is ex­pected to be com­pleted in 2017. 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 free­hold areas of Dubai South.

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