Dubai CommerCity causes warehouse price surge
Dubai’s Umm Ramool area - the location of Dubai's new free zone for the e-commerce sector - has seen a 120 percent surge in those looking to do business there, according to new statistics from Propertyfinder Group.
According to Propertyfinder, the area’s proximity to the airport and the announcement last year that it will be the site of a $740 million, 2.1 million square e-commerce free zone, Dubai CommerCity, have assisted in its popularity.
“Starting from a low base, we’ve seen a steady increase in interest in interest in Umm Ramool as more listings come onto the commercial market there,” said Dina Mohammed, Propertyfinder Group’s head of data science and analytics.
Propertyfinder”s statistics show that while many warehouse locations have seen decreases in asking price per square foot over the course of the last six months, Umm Ramool saw a 5.75 percent increase, to a median price per square foot of AED 45.
Among the most affordable areas in the UAE for warehouse space was found to be Emirates Modern Industrial in Umm Al Quwain, where prices are AED 22 per square foot – less than half of the most expensive offering in Dubai’s Al Quoz.
Notably, 30 percent of warehouse listings on Propertyfinder were in Dubai Industrial Park, followed by Al Quoz (20 percent), Jebel Ali (11 percent) and Mussafah (7 percent).
The most expensive area to rent a warehouse was found to be DIFC, with a median price per square foot of AED 217, followed by Dubai Media City (AED 151), Sheikh Zayed Road (AED 128), Al Reem Island (AED 114) and Deira (AED 111).