Dubai’s warehousing costs among highest in world; up 7.7%

Dubai’s warehousing costs among highest in world; up 7.7%

UAE - Warehousing costs in Dubai rose by 7.7% in the 12 months to June 2022, making it one of the most premium warehousing markets in the world, according to Savills, a leading global real estate services provider.

Across 52 global markets monitored by Savills, the average cost of warehouse property increased 8.4% between June 2021 and June 2022, as demand surged for industrial and logistics space in the wake of the pandemic, stated Savills in its update as part of its 2022 Impacts programme.

London is the most expensive warehousing market in the world, with an average prime occupancy cost of $35 per sq ft (rent, service charges and taxes), followed by Hong Kong ($26) and Tokyo ($22).

Strong demand and lack of Grade A stock in Dubai has led to warehouse occupancy costs rising to $19 per sq ft, putting it in fourth position.

Meanwhile, in the US, whilst warehouse costs are generally lower, they have seen some of the biggest proportional increases in the past 12 months: occupancy costs in the seven major industrial markets space rose by an average of 20.1%.

Warehousing property

"Dubai is an established logistics market in the region with sectors such as e-commerce, and third-party logistics (3PL) expanding