Strong take-up in industrial buildings in the first six months of 2012

Rents have remained stable across the region since Q1 2012

Confidence returning to industrial sector with boosted enquiry levels from existing and new companies

Dubai, UAE: 3 October 2012 - Cluttons, the real estate specialist which has enjoyed a dedicated Middle Eastern presence since 1976, today announces its Q3 market report for the Dubai's light industrial and logistics market 2012.  Cluttons can confirm an improvement in this sector when compared to the same period in 2011.

Enquiry levels are significantly up with existing companies wishing to expand or consolidate operations and new companies looking to enter the market. It is evident that confidence is returning to the sector in the Free Zone and non Free Zone environments.  In the last quarter, Cluttons has worked on active enquiries totaling 100,000 square metres (1,076,400 square feet) throughout Dubai. 

Dubai investments Park and Dubai Industrial City have reported strong take-up in industrial buildings in the first six months of 2012.  Cluttons has witnessed particular demand for temperature-controlled facilities from logistics companies wishing to lease additional warehouses that can facilitate Fast Moving Consumer Goods (FMCG) contracts.  Interest to acquire land plots throughout Dubai is showing similar positive signs; Cluttons has worked on two large land acquisitions totaling 80,000 square metres in the first half of 2012.

Rents across the region have remained relatively stable, remaining at 17 AED per square foot (182 AED per square metre) per annum depending on size and specification.  The last six months has also seen capital values remain reasonably stable.  However, some transactions in locations such as JAFZA have pushed over the 200 AED per square foot (2,152 per square metre) level.  The notable lack of prime stock has resulted in the investment market witnessing net yields compress to 8.5%.

Cluttons predicts that in 2013 enquiries will continue at similar levels seen in Q1 and Q2  2012, and is optimistic about further absorption of the oversupplied, light industrial stock throughout the Emirate as well as continuation of demand for build-to-suit units in prime locations.

Notes:

Cluttons LLP is an independent partnership of chartered surveyors founded in 1765. With a network of offices in the UK, Europe, Middle East and South Africa, Cluttons LLP offers a wide range of professional property management, agency and consultancy services across the commercial and residential sectors, for both investors and occupiers. For further information, please see: www.cluttons.com

Issued by:                 
Sophie Toh | Heba Selim
Toh Public Relations
Tel: 00971 4 354 9212  
Email: sophie@tohpr.com
heba@toh

© Press Release 2012