Cluttons: Positive signs for light industrial and logistics market with new major projects in Dubai Investments Park and Dubai Industrial City
- United Arab Emirates: Wednesday, October 03 - 2012 at 12:00
- PRESS RELEASE
Cluttons, the real estate specialist which has enjoyed a dedicated Middle Eastern presence since 1976, 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.
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 Dhs17 per square foot (Dhs182 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 Dhs200 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.
Articles in this section are primarily provided directly by the companies appearing or PR agencies which are solely responsible for the content. The companies concerned may use the above content on their respective web sites provided they link back to http://www.ameinfo.com
Any opinions, advice, statements, offers or other information expressed in this section of the AMEinfo.com Web site are those of the authors and do not necessarily reflect the views of Mediaquest FZ LLC. Mediaquest FZ LLC is not responsible or liable for the content, accuracy or reliability of any material, advice, opinion or statement in this section of the AMEinfo.com Web site.