Dubai Industrial & Logistics Market Report — H1 2026
Rental growth +14.2% YoY, occupancy at 94.6%, capital values +18.5%. Supply-constrained market with rising rents across JAFZA, Al Quoz, Dubai South and DIC. Full quarterly analysis with zone-by-zone breakdown.
Executive Summary
The Dubai industrial, manufacturing, and logistics sector has demonstrated remarkable resilience and structural growth through H1 2026 — driven by regional supply-chain re-shoring, e-commerce infrastructure expansion, and the continuous build-out of free-zone corporate footprints.
Demand for premium warehouse space has consistently outpaced supply. Occupancy in prime industrial districts is now at historical highs approaching structural maximums, and Grade A / B rents have recorded double-digit YoY gains.
# H1 2026 Key Indicators
- Rental growth YoY: +14.2%
- Average occupancy: 94.6%
- Capital values YoY: +18.5%
- Average net yield: 8.25%
- Cold-storage rent premium: 35-50% over ambient
# Zone Rental Snapshot (Grade A, AED/sqft)
- Al Quoz — 75-95 — *Critically Low Supply* (+16.9% YoY)
- JAFZA — 55-70 — *Near Capacity* (+15.2% YoY)
- Dubai South — 48-62 — *Rapid Expansion* (+15.5%)
- Dubai Industrial City — 42-52 — *High Absorption* (+13.8%)
- Jebel Ali Industrial — 45-58 — *Highly Constrained* (+12.5%)
- Ras Al Khor / Awir — 50-65 — *Stable / Mature* (+11.4%)
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