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In its recently released third quarter report on the UAE industrial and logistics sector, international property consultancy Knight Frank has said that the UAE continues to further strengthen its position as a global logistics hub, helped by its geographical positioning and worldclass transport infrastructure. While Dubai’s economy continues to be driven by trade, tourism and transport, Abu Dhabi’s industrial sector remains heavily centred towards oil and gas.
William Neill, Partner at Knight Frank’s, Commercial Leasing said that despite the fall in oil prices, rents in Abu Dhabi have remained stable across the emirate. “The lack of quality accommodation being in short supply across the industrial market is one of the key reasons for rentals rates holding Q4, 2014 levels,” he said.
Neill also said the number of enquiries has declined slightly but has not affected the rentals as there is limited quality industrial accommodation and no additional supply is expected in the near term. The maximum enquiries received in Abu Dhabi over the third quarter were from the construction sector (50 per cent) while the average size of requirements for this sector was 1,500 sq m.
In Dubai, there has been about 4 per cent growth in rentals on average (over the last 6 months) across the industrial districts being tracked in Dubai. JAFZA class 1 rents witnessed an increase of 2 per cent over the last 6 months and continued to be the favoured location for global occupiers and capital values have remained flat to about Dh250- 300 per square feet.
Dubai office market
In its third quarter office market update, Knight Frank has observed that the Dubai office market is experiencing a healthy level of demand. Dubai’s economy has continued to grow despite the drop in oil prices which is testament to the city’s diversification. The healthy level of demand and low supply of prime office space has helped to exert continued upward pressure on rents.
Source: Property Weekly