UAE among the most affordable locations for warehousing operations globally

UAE among the most affordable locations for warehousing operations globally

Middle East: Savills, the leading global real estate advisor, today released its warehouse costs ranking analysing +50 markets across 21 countries as part of its Impacts research programme. According to the new research, total costs (including labour and energy costs, in addition to rents, taxes and service charges) make London, Stockholm and Tokyo the top three most expensive locations in the world to take warehouse space, with Gothenburg and Hamburg taking fourth and fifth place.Very low labour costs coupled with extremely low energy costs make operations in Vietnam the most affordable location, led by Hanoi.  These low costs make Vietnam highly attractive to multinationals setting up operations in the country, but the government is actively targeting higher value companies. India, also characterised by very low warehousing property costs, is the second most affordable location in our sample.In the UAE, warehousing property and electricity costs are higher than in India and Vietnam, but these are offset by the lowest diesel costs, contributing to its position as one of the least expensive locations for warehousing operations globally. According to Swapnil Pillai, Associate Director - Research at Savills Middle East, "The UAE has seen stable warehousing occupancy and rents, with take up led by