Warehouse and Logistics Property Valuation in Dubai: Zones, Yields and Method

In short: Dubai warehouses are valued mainly by the income approach: net operating income divided by a market yield. JLL puts Prime and Grade A yields at 7.25% to 8.25% and Grade B at 8.25% to 9.25% across Dubai and Abu Dhabi. Cost and comparable approaches support specialised or small assets. Zone, specification, power supply and lease terms move the value.

Dubai's warehouses are among the emirate's best-performing commercial assets in 2026. Rents and capital values are rising, and institutional and private buyers are competing for well-let stock. For owners, lenders, investors and occupiers, that makes an accurate valuation more important.

This guide explains how warehouse and logistics property is valued in Dubai: which zones command a premium, what yields the market supports in 2026, and the methods RICS-regulated valuers apply. If you need a valuation of your own asset, see our industrial and logistics property valuation service.

The 2026 Dubai warehouse market: demand, values and supply

Demand

Occupier demand is still growing. Knight Frank recorded 12.3 million sq ft of new industrial and logistics requirements in Dubai in H1 2026, up from 11.5 million sq ft a year earlier. Manufacturing and industry was the largest source of demand at 35.1% of requirements, ahead of logistics occupiers at 15.5%.

Capital values

Values are following. ValuStrat reported warehouse capital values up 8.4% quarter on quarter and 17.7% year on year in Q2 2026. Annual capital-value growth was led by Al Quoz at 30.4%, followed by Dubai Industrial City at 24.5% and Al Qusais at 19.7%, according to Al Bayan's report on the ValuStrat data.

Supply

Supply is the variable to watch. Knight Frank estimated in February 2026 that about 6.6 million sq ft of new stock would complete in Dubai in 2026, and its July 2026 review expects completions to moderate significantly in 2027 and 2028. Valuers weigh today's tight market against this delivery wave, particularly for older Grade B assets.

Warehouse rents by zone in Dubai

Location drives warehouse value in Dubai more than almost any other factor. Grade A rents in Al Quoz are roughly double those of port-side space in JAFZA, so the right comparable evidence depends heavily on zone.

Zone	Typical role	Grade A rent (AED psf)	Annual rent growth
Al Quoz	Last-mile distribution close to consumers	About 90	+6%
Dubai South	Airport and Expo corridor	About 55	+22%, the strongest in Dubai
Dubai Industrial City	Manufacturing and larger units	About 58	+16%
JAFZA	Port-linked logistics	40 to 45	About +22%

ValuStrat recorded average asking rents of AED 25 to AED 95 psf across Dubai warehouses in Q2 2026, with asking rents up 11.9% on the quarter. Port-linked zones such as JAFZA benefit from shipping traffic, while Al Quoz stays in demand for last-mile distribution. Dubai South recorded the strongest annual rent growth in Dubai as logistics operators follow the airport and Expo corridor south.

Warehouse yields in Dubai: what the market supports

Warehouse yields in Dubai have compressed but remain high by global standards. Investors also call the yield a capitalisation or cap rate: the annual net income as a percentage of value.

Asset grade	Yield	Source
Prime and Grade A	7.25% to 8.25%	JLL 2026 outlook, Dubai and Abu Dhabi
Grade B	8.25% to 9.25%	JLL 2026 outlook, Dubai and Abu Dhabi
Prime industrial	8% to 9%	ValuStrat, July 2026

ValuStrat notes that prime industrial yields, once in double digits, have tightened as institutional and private capital compete for limited stock. Older, short-income Grade B assets can still price at the top of the Grade B range or above.

What moves the yield

• Specification: modern Grade A stock with high eaves and dock levellers prices at the lower end.
• Income security: strong tenant covenants and long unexpired leases reduce risk.
• Tenure: a short remaining land lease or high ground rent pushes yields up.
• Reversion: leases signed before the 2025 to 2026 rental surge often sit below market rent, adding upside.

How warehouses are valued: the three methods

Most Dubai warehouses are valued using the income approach, with the cost and comparable approaches as support. The right mix depends on the asset, its tenure and the purpose of the valuation.

Income approach

The income approach values a property by the rent it produces, so it is the default for let or lettable logistics assets.

Direct capitalisation suits stabilised, single-let warehouses. The valuer divides net operating income (rent less costs the landlord cannot recover) by a market-derived yield:

Value = Net operating income ÷ Yield

Discounted cash flow (DCF) is used for multi-let parks, leases with rent reviews, assets with vacancy, and leasehold interests with a finite term. It projects income and costs over 5 to 10 years and discounts them to today's value.

Worked example

A warehouse producing AED 4 million of net operating income at a 7.75% yield is worth about AED 51.6 million (AED 4,000,000 ÷ 0.0775). At an 8.25% yield the same income gives about AED 48.5 million, so half a percentage point on the yield moves the value by about AED 3.1 million.

Cost approach

The depreciated replacement cost method suits specialised assets with little rental evidence: cold stores, owner-occupied factories and high-power facilities. Land value comes from Dubai Land Department (DLD) plot transactions, building cost from current construction rates, and depreciation reflects age, condition and obsolescence.

Comparable approach

Direct comparison works best for small freehold or strata units, where sales are frequent enough to compare. For larger assets, it mainly supports the rent and yield evidence used in the income approach.

What affects a warehouse's value in Dubai

Two warehouses of the same size in the same zone can differ widely in value. A valuer examines these factors most closely:

• Tenure: freehold, mainland leasehold or free-zone lease (JAFZA, Dubai South, Dubai Industrial City). The remaining land-lease term, ground rent and sub-lease fees all affect value.
• Building specification: clear eaves height, number of loading docks, floor loading, fire and sprinkler systems, and temperature control.
• Power supply: high-capacity electricity (kW/kVA) is scarce and commands a clear rent premium, especially for manufacturing and cold storage.
• Lease profile: tenant strength, unexpired lease term, break options and rent review terms.
• Site and access: plot coverage, truck yard, parking, and distance to Jebel Ali Port, Al Maktoum Airport and Emirates Road.
• Market supply: the 2026 completion pipeline can soften rents for older stock in some locations.

What a valuer needs from you

A typical warehouse valuation starts with: [confirm list with the valuation team] the title deed or land lease, tenancy contracts and rent roll, floor plans and areas, the building specification (eaves height, docks, floor loading), power capacity in kW or kVA, operating costs and service charges, and the purpose of the valuation. Sending these with your request shortens the process.

Frequently asked questions

How is a warehouse valued in Dubai?

Mainly by the income approach: net operating income divided by a market yield, or a discounted cash flow for multi-let or finite-lease assets. The cost approach suits specialised assets and the comparable approach suits small units.

What is a good warehouse yield in Dubai?

JLL's 2026 outlook shows 7.25% to 8.25% for Prime and Grade A and 8.25% to 9.25% for Grade B across Dubai and Abu Dhabi. ValuStrat reported prime industrial yields of 8% to 9% in July 2026.

How much is warehouse rent per sq ft in Dubai?

Knight Frank's H1 2026 figures show about AED 90 psf for Grade A in Al Quoz and about AED 55 psf in Dubai South. ValuStrat recorded asking rents of AED 25 to AED 95 psf in Q2 2026.

Which area of Dubai has the highest warehouse rent?

Al Quoz, at about AED 90 psf for Grade A in H1 2026 according to Knight Frank. It is the main last-mile location.

How fast are Dubai warehouse values rising?

ValuStrat reported capital values up 8.4% on the quarter and 17.7% on the year in Q2 2026. Al Quoz rose 30.4% and Dubai Industrial City 24.5% over twelve months.

When do you need a warehouse valuation?

For bank lending and refinancing, acquisitions and disposals, financial reporting and audit, lease renewals and rent reviews, and portfolio or fund valuations.

What does a warehouse valuer look at?

Tenure, building specification, power supply, lease profile, site and access, and the supply pipeline.

Is Reliant Surveyors RICS-regulated?

Yes. Reliant Surveyors is a RICS-regulated firm and has provided valuation and advisory services in the UAE since 1977.

Warehouse and logistics valuation with Reliant Surveyors

Accurate warehouse valuation takes more than a look at location and rent. It needs an understanding of market dynamics, asset specification, lease structure and investment fundamentals.

Since 1977, Reliant Surveyors has provided RICS-regulated valuation and advisory services for warehouses, logistics facilities, industrial properties and land across the UAE. Our valuations support:

• Bank lending and refinancing
• Acquisitions and disposals
• Financial reporting and audit
• Lease renewals and rental reviews
• Portfolio and fund valuations

Request a warehouse valuation or call +971 4 255 4683 to speak to our valuation team.