Dubai warehouse transactions surge 60% amid e-comm boom

Warehouse transactions across Dubai have surged 60 per cent year-on-year, driven by e-commerce growth and rising demand for logistics and distribution space, as per Cavendish Maxwell. Vidhi Shah, Director and Head, Commercial Valuation, said, “Dubai is established as a regional hub for distribution and logistics. The 60 per cent rise in transactions reflects demand from new businesses and existing tenants, both local and international. Quality warehouses in strategic locations near major roads, ports, and airports recorded the highest rental growth.” The sector recorded 8,600 rental transactions in H1 2025, up from 5,400 in the same period last year, and a 28 per cent increase compared to H2 2024. Annual rents also jumped sharply, rose by 20 per cent YoY, with Jebel Ali seeing the highest increase. The average rental rise across Dubai was just over 14 per cent. With high occupancy rates and constrained supply, tenants are increasingly looking to neighbouring emirates when suitable premises aren’t available. Top areas for warehouse rent growth included Jebel Ali (20%), Ras Al Khor (17.3%), Umm Ramool (16.6%), Dubai Investments Park (15.6%), and Dubai Industrial City (14%).