UAE's logistics and warehouse space to grow in 2019, says CBRE

Current low supply will likely grow in line with rising online shopping and same-day delivery, according to Nicholas Maclean
Nicholas Maclean, managing director at CBRE Middle East.
Nicholas Maclean, managing director at CBRE Middle East.


The UAE’s logistics and warehouse sector is expected to grow in the next 12 months, according to Nicholas Maclean, managing director at CBRE Middle East.

In an opinion piece looking ahead to 2019, Maclean said global companies moving or expanding to the country will particularly demand customisable warehouse space.

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“The logistics and warehouse space will be an important sector to watch in 2019. As more international brands look to move into the UAE, sourcing high quality warehouse space - that can be customised to fit client needs - has never been more important,” he said.

Supply for storage space is currently low despite 2018 having seen significant increase in demand. However, Maclean said supply is likely to grow in line with rising online shopping destinations and same-day delivery options.

“This past year, we have seen a strong increase in demand for storage space. Access to land remains a challenge as does the small size of the rather opaque market. Opportunities, however, do exist in this sector particularly for investors whose clients are eager to sign longer leases,” he said.

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“As the popularity of online shopping and same-day delivery continues, we can expect the demand for high-quality space to continue to rise especially in strategic areas such as Dubai South,” he added.

The UAE’s implementation of 100% foreign business ownership, dual licensing and longer visa laws for professionals and investors is also expected to boost the country’s overall property industry, Maclean said.

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