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Industrial rents in Abu Dhabi have remained stable during the second half of 2014, according to the latest industrial and logistics research report conducted by Knight Frank.
Mussafah was the lone industrial cluster which witnessed a 10 per cent year-on-year increase in rents. The industrial area is situated 30 kilometers from the Abu Dhabi city center and is adjacent to Mussafah Port. The average annual rents at some of the high-end industrial properties in the area have been pegged at Dh550 per square meter.
Some of the properties at Industrial City of Abu Dhabi (ICAD) located in Mussafah attracted similar rents. Among the different zones in ICAD, ICAD 4 is primed to be a sought-after industrial destination as Abu Dhabi’s largest rail terminal is set to be located here.
Phase one of three phases of the Kizad Logistics Park (KLP), which covers an area of more than 45,000 square meters, is now complete with all 41 warehouse units leased to local and international investors. Phase two, with 32 warehouse units, is expected to be launched this year.
The logistics park, when fully complete, will provide a total area of around 120,000 square meters and is designed to become a major regional logistics and warehousing center.
The shifting of the container terminal from Mina Zayed to Khalifa Port has seen increasing interest from logistics firms to relocate to Kizad as it is located close to the new container terminal.
Despite the dip in oil prices, industrial rents in Abu Dhabi is yet to be affected with the hydrocarbon sector yet to lower production or take any major cost-cutting measures.
• Industrial space rents in the capital remain stable in H2 2014
• The Kizad Logistics Park has seen a sharp increase in demand
• ICAD 4 is primed to become a sought-after industrial destination
Source: S. Dhar, Special to Properties
The writer is a freelancer