Dubai’s lack of storage supply is forcing some businesses to shift to Abu Dhabi or look to different property classes.
Insights from Knight Frank’s Q3, 2023 Industrial Markets Review
According to Knight Frank’s “Dubai & Abu Dhabi Industrial Markets Review” for Q3, 2023, Dubai is experiencing a shortage of warehouse space, prompting businesses to explore alternative options in Abu Dhabi or consider different property categories.
Scarce Warehouse Supply in Dubai
The report highlights that the under-construction warehouse stock in Dubai’s industrial market is currently limited to 1.56 million square feet, signifying a scarcity in available space.
Demand Surpassing Supply
Knight Frank underscores that the demand for warehouses surpasses the existing supply, compelling occupiers to consider leasing secondary stock. Concurrently, businesses are increasingly shifting their focus towards Abu Dhabi, benefitting from spillover demand and exploring alternative locations due to the constraints faced in Dubai.
