There is strong demand for high-quality warehouses and logistics facilities in the UAE and occupiers are seeking both onshore and free zone ‘build-to-suit’ developments, property management and consultancy firm Cluttons said in its latest report on the UAE industrial and logistics market, a copy of which was obtained by Gulf News yesterday, ahead of its official release during the ongoing Cityscape Abu Dhabi 2012.
However, occupiers are “facing limited supply, particularly in the larger, 50,000 square foot-plus range,”
Cluttons said the Abu Dhabi Executive Council has announced ambitious plans to develop the UAE’s infrastructure, including 246km of new road projects.
Further funding is being poured into industrial zone expansion in Kizad and AutoCity. Kizad is set to become one of the world’s largest projects of its kind, centered around one of the most sophisticated port hubs Khalifa Port.
In Dubai, traditional areas like Al Quoz have maintained strong demand and consistently achieve higher rents than the more recently developed areas. The lack of larger units in the emirate has driven expansion in other areas, as Gulf News stated.
Cluttons said in the first quarter of 2012 there was stronger interest seen in apartments on Abu Dhabi Island, as it becomes more affordable.