Rentals increase 4% in Dubai's free zones
by Ashleigh McGinley
Rentals in Dubai’s industrial and logistics districts have increased an average of 4% in the last six months.
Jebel Ali Free Zone is the favoured location for 'global occupiers', according to independent consultant Knight Frank.
Meanwhile, capital values remained flat at around $68-81 (AED250-300) per sq ft, the company added.
In Abu Dhabi's industrial districts, rents have remained stable over the last six months.
Will Neill, partner, Commercial Leasing, said: "The lack of quality accommodation being in short supply across the industrial market is one of the key reeasons for rental rates holding fourth quarter of 2014 levels."
Leasing at all of the leading free zones are at optimum levels, with Dubai Industrial City continuing to tap sizeable investments across its multiple zones.
The numner of enquiries declined "slightly" - but did not have a knock-on effect on rentals "as there is limited quality industrial accommodation and no additional supply is expected in the near term".
The maximum enquiries received in Abu Dhabi over the third quarter were from the construction sector (50%)