Dubai industrial leasing up 25.7% as rents hit AED 50

New industrial leasing contracts in Dubai rose 25.7 per cent year on year in the third quarter of 2026, according to JLL's latest UAE industrial real estate report, as reported by Arabian Business.

Rents and contracts

Average industrial rents in Dubai reached AED 50 per square foot (about $13.61), up 5.9 per cent from a year earlier. JLL linked the increase to the limited availability of modern warehouses and high-quality industrial space.

Renewals fell 8.9 per cent in the quarter, although the number of renewed contracts was still 9.5 per cent higher than in the same quarter a year earlier. JLL said some tenants are relocating or upgrading to more modern facilities as their operational needs change.

Why demand remains firm

The report said prime industrial locations in Dubai and Abu Dhabi are approaching full occupancy as new businesses enter the UAE and existing companies expand. Demand is coming from logistics operators, e-commerce companies and firms investing in supply chains.

JLL also said businesses have been reassessing supply-chain strategies amid regional geopolitical challenges, including holding more safety stock and favouring more reliable overland transport routes. New Grade A warehouse developments are expected to ease supply constraints, although higher construction costs could delay some projects.

Abu Dhabi comparison

In Abu Dhabi, average industrial rents reached AED 489 per square metre, up 1.6 per cent year on year and 0.6 per cent on the previous quarter. JLL attributed the slower growth to regulatory restrictions on rent increases, with exemptions for certain properties and new developments.

Several projects are under way in the capital. They include an agreement between KEZAD Group and Jingdong Property for 150,000 square metres of automated warehousing, a 37,000-square-metre cold-chain hub at Abu Dhabi Food Hub, and KEZAD Logistics Park 7, which is expected to add 88,135 square metres.

What it means for businesses

For companies searching for warehouse or logistics space in Dubai, JLL's findings point to limited choice in prime locations and rents that are still rising. Other property firms track the market with different methods and samples, so figures can vary between reports. Businesses comparing options may want to check more than one source.