Prime locations for warehouses
JAFZA (Jebel Ali Free Zone) is the largest free zone in Dubai and the Middle East, located directly beside Jebel Ali port, the busiest port in the region. Warehouses in JAFZA range from 5,000 to 100,000 square feet and cost AED 350–500 per square foot to buy.
Al Quoz is an industrial district in the heart of Dubai, ideal for distribution within the city. Warehouses here are smaller (2,000–20,000 square feet) and cost AED 400–700 per square foot. The central location makes it popular for last-mile delivery and small-scale production.
Dubai Industrial City offers large-scale industrial plots and warehouses for manufacturing companies, with units from AED 250 per square foot. Dubai South, near Al Maktoum Airport and Expo City, is the logistics hub of the future with warehouses from AED 300 per square foot.
Types of warehouses
The market offers several warehouse types. Standard dry warehouses are suited to storing goods at ambient temperature. Temperature-controlled warehouses provide cooling or climate control for food, pharmaceuticals and cosmetics.
Logistics warehouses are equipped with loading docks, forklift lanes and sorting systems for distribution. Light industrial warehouses combine storage with production space and can be fitted with production lines, workshops or assembly facilities.
Clear heights range from 6 to 12 metres, which determines storage capacity. Modern warehouses feature sprinkler systems, three-phase power and a separate office section.
Free zone advantages for warehouses
Warehouses in free zones such as JAFZA, DAFZA and Dubai South offer specific advantages for trading and logistics businesses. You can import, store and re-export goods without paying import duties. This makes Dubai the leading re-export hub between Asia and Africa.
A free zone licence provides 100% foreign ownership, no corporate tax, no personal income tax and simplified visa procedures for staff. JAFZA alone hosts more than 8,000 companies from 140 countries.
For businesses looking to operate both locally and internationally, a dual licence structure (free zone plus mainland) offers the greatest flexibility. Our team advises you on the optimal setup.
Yields and market trends
Warehouses are the best-performing segment of Dubai's commercial property market, with net rental yields of 9–12%. The growth of e-commerce, expanding by 20–30% annually across the region, is driving demand for last-mile and fulfilment warehouses.
Warehouse rents have risen by 15–25% over the past three years, driven by limited supply and rising demand. New developments in Dubai South and Dubai Industrial City are adding stock, but absorption remains high.
Warehouse leases typically run for 3–10 years, with tenants including logistics companies, e-commerce platforms, FMCG businesses and trading firms. The tenant usually maintains the unit (triple net lease), which keeps the landlord's net operating costs low.
Purchase process and due diligence
Buying a warehouse involves specific points of attention beyond the standard purchase process. Zoning must be verified: not every industrial area permits the same activities. Environmental compliance is required for storing chemicals or hazardous materials.
We check the structural condition of the building, the capacity of the power supply, the fire safety installations (Civil Defence certificate) and the road infrastructure for heavy traffic. Where tenants are in place, we verify the lease, payment history and any environmental liabilities.
Transaction costs amount to approximately 7–8% of the purchase price, in line with other real estate in Dubai.