**DUBAI’S INDUSTRIAL AND WAREHOUSING RENTS CLIMB 14% YoY
IN H1 2025**
Dubai’s industrial and logistics market maintained strong momentum
through Q2 2025, supported by constrained supply, sustained occupier
demand from 3PL, e-commerce, and manufacturing sectors, and a
marked shift toward modern grade A facilities.
Dubai Investments Park (DIP) and Dubai Industrial City led rental
growth, recording sharp YoY increases of 30% and 29%, respectively. In
contrast, JAFZA rents were largely stable, with Grade A stock
unchanged and Grade B up just 4% YoY, reflecting a plateau in these
mature, fully established submarkets.
**NEW SUPPLY PIPELINE TO RESHAPE MARKET DYNAMICS**
The sector is poised for a significant supply wave over the next 18
months, with institutional-grade logistics parks set to launch across
key submarkets including DIP, Warsan, and National Industries Park
(NIP).
Aldar Properties will deliver a 1.59 million sqft logistics park in NIP,
featuring three modular buildings with flexible configurations. This
project forms part of Aldar’s AED 1 billion ($272 million) commitment
to expand its logistics real estate footprint across Abu Dhabi and
Dubai.
Terralogix by Sweid & Sweid, adding 1.96 million sqft of high-spec
warehousing, represents a strategic move into emerging corridors,
catering to high-growth sectors such as FMCG, 3PL, and retail.
Meanwhile, Radius City Logistics in DIP continues to draw steady preleasing interest, particularly from occupiers seeking last-mile
distribution hubs close to major residential communities.