(MENAFN- Khaleej Times) Cluttons, the real estate specialist, continues to see healthy growth in Dubai's industrial and logistics market with a steady demand from new businesses entering the market and renewed confidence amongst existing players.
In a first-quarter report on the emirate's industrial and logistics sector, the property consultant said the majority of demand has been driven from the automotive, base metal and food sectors. It further said that supply and demand in the free zone market has remained steady and this will most likely continue throughout 2013.
Cluttons recorded modest growth in rental prices over the past six months, especially outside free zone areas, where building supply is limited. In these areas, there is a trend for tenants to take up large pieces of land and build their own units.
"Activity is currently concentrated in two main non-free zone areas, Dubai Industrial City (DI) and Dubai Investment Park (DIP). Dubai Industrial City is generating momentum and has reported occupancy figures of over 80 per cent for seven million square feet of warehousing and leasing figures of 9.8 million square feet of land plots in first quarter of 2013," the real estate firm said.
Dubai Investment Park has maintained its popularity, registering an increase of over 80 per cent in commercial space allotments over a total leased area of 1.6 million square foot over the past six months. Cluttons is aware of several 32,000 to 86,000 square foot warehouses being developed that have been sold and leased off-plan.
"A key driver for the area has been the success of long-term leasehold interests with investors and occupiers, which are being offered for up to 85 years. This movement is expected to contribute to the expansion of Dubai Investment Park throughout 2013 and beyond," the consultancy firm said in a statement.
Looking forward, Cluttons believes that healthy demand will continue throughout the sector in Dubai. As a result, the majority of the larger (32,000 square foot and above), stand-alone, modern facilities could be absorbed. "We could see gentle rental and capital growth for these types of buildings as well as an increased demand for build-to-suit projects. The Dubai industrial and logistics sector clearly has improved, and will continue to improve as demonstrated by strong rents," an analyst at Cluttons said.
In another development, the UAE's leading real estate portal reported a huge rise in site traffic to its market leading property portal, now showcasing to local and international investors at the International Property Show. The company's participation at the three-day show comes hot on the heels of its launch into the Egyptian market at the recent Cityscape Cairo event. The company aims to replicate its achievements in the UAE and Qatar in Egypt, and has plans to accelerate expansion across the region in the coming months.
"The real estate market in the UAE is definitely on the up. We have seen a 186 per cent rise in visitor numbers to our site in first quarter as compared to the same period last year," Renan Bourdeau, managing director of propertyfinder.ae, said.
The latest report from Jones Lang LaSalle also showed that valuations of apartments and villas in Dubai had continued to climb. In the first quarter of this year prices were up 18 per cent in prime locations. The report also stated that 'for the first time since mid-2008, all sectors of the Dubai real estate market are currently positioned in the recovery stage of the market cycle.
"One of the other more interesting indicators of this is the fact that people are seeking more properties in the higher price bands. According to our recent market study, two thirds of the searches for properties are in the range between Dh500,000 and Dh3,000,000, which represents the most promising opportunity for developers and investors," he added.
The company brings together the largest community of buyers, renters, registered brokers and developers across the UAE and sees exhibiting at the International Property Show as an ideal forum not for the domestic market but for the region as a whole.
"2013 has witnessed a continued growth in the real estate market in general and specifically when it comes to new projects being unveiled and launched. Investor interest for property purchases is on the rise once again, so we feel that the timing is perfect for IPS," Bourdeau said.
Â
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.