Growth attributed to unprecedented e-commerce expansion-Cavendish Maxwell
Warehouse transactions across Dubai have risen by 60% year-on-year as unprecedented e-commerce expansion pushes up demand for distribution and logistics space, says leading real estate advisory group and property consultant, Cavendish Maxwell.
The warehousing sector recorded 8,600 rental transactions in H1-2025, compared to 5,400 in the same period last year. Volumes rose by nearly 28% against H2-2024, according to Cavendish Maxwell’s latest report on Dubai’s retail and warehousing market.
The research also reveals that annual rents for warehousing jumped by as much as 20% year-on-year, with accommodation in Jebel Ali commanding the highest increase. The average rental rise across Dubai was just over 14%.
Rise in transactions
“Dubai is already firmly established as a key regional hub for distribution and logistics, and demand for warehousing is growing exponentially, driven by e-commerce expansion and resilient trade activity. The 60% rise in transactions comes from new leases and renewals, reflecting strong demand from new businesses and existing tenants, both international and local,” explained Vidhi Shah, Director, Head of Commercial Valuation, Cavendish Maxwell.
“With high occupancy rates, constrained supply and new e-commerce businesses constantly entering the market, we expect the sector to stay strong. However, when suitable premises at the right price aren’t available, tenants are increasingly seeking accommodation in neighbouring emirates,” she added.
Dubai’s top five areas for warehouse rent rises were Jebel Ali (20%), Ras Al Khor (17.3%), Umm Ramool (16.6%, Dubai Investments Park (15.6%) and Dubai Industrial City (14%).
