Dubai warehouse market sees 12.5% rent growth

Dubai’s warehouse rental rates rose almost 12.5% year-on-year in the first half of 2026, while total rental value reached AED1.8 billion ($490 million), according to Cavendish Maxwell. Around 10,000 warehouse leases were signed during the period, with renewals rising 22% to 8,200.

The leasing activity reflects continued demand for warehouse space from businesses managing storage, distribution and supply chain operations. Nearly 70% of leases were for units smaller than 5,000 sq ft, while warehouses above 10,000 sq ft accounted for almost 20%.

Jebel Ali recorded the highest rental growth at 15.5%, followed by Dubai Industrial City at 15% and Ras Al Khor at just under 14%. These locations support businesses handling storage and distribution across Dubai.

Overall leasing contracts fell 4.5% compared with H1 2025, while new contracts dropped by more than 50%. The rise in renewals suggests more businesses are staying in their existing warehouse locations rather than taking new space.

Vidhi Shah, Director and Head of Commercial Valuation at Cavendish Maxwell, said: “The sharp contraction in new contracts, alongside record renewal levels points to an occupier market characterised by strong retention but a reduced appetite for new space commitments.”