Dubai sustains its global competitivity for 2018, but challenges remain in 2019

  • Supply and demand for property in Dubai’s industrial and logistics sector revealed
  • Report offers key insights into current market challenges and future opportunities
  • The firm casts outlook for 2019, including key drivers for investment

Leading property consultancy and chartered surveying firm, Cavendish Maxwell, has released its Dubai Industrial and Logistics Report for 2018. The report offers a comprehensive and unique outlook on Dubai’s overall competitivity as a logistics hub, the infrastructure available, supply and demand, and market sector opportunities for growth and investment. The report was compiled by the firm’s in-house Investment and Commercial Agency team, drawing data from its in-depth industry knowledge, in collaboration with its extensive client and partner portfolio.

Commenting on the report, Andrew Love, Partner and Head of Investment and Commercial Agency at Cavendish Maxwell, said:“Dubai’s industrial and logistics real estate market remained relatively stable in the six months leading up to 2019. However, the market continues to be challenging, with increased flight-to-quality and supply still outstripping take up. We will continue to monitor market conditions going into 2019, providing our customers with expert insights to help them decide how best to maximise investment and returns.”

Key sector insights

Demand for property in the industrial sector is being driven by SMEs across Dubai, many of which are seeking opportunities to relocate and benefit from the softer market conditions in an attempt to reduce their occupational costs.

The logistics/distribution and general trading industries accounted for over 60% of demand, with manufacturing also showing positive enquiry levels, testament to the competitiveness of Dubai for business.

Accounting for approximately 10% of the UAE’s economy, the logistics and transport industry’s market share far outperforms the wider region. Continued significant investments into this sector should provide the platform for future growth and ensure the industry plays an important role in the economy in the future.

Funds, Real Estate Investment Trusts (REITs) and high-net-worth individuals looking for opportunities are driving appetite for investment in the industrial and logistics sector of the property market. In the absence of good quality investment opportunities, investors with cash to spend are increasingly reviewing options that would not have been considered 12-18 months ago.


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