A comprehensive snapshot of Dubai’s industrial market performance in Q3 2025, highlighting constrained new supply, resilient warehouse leasing activity, stable rental benchmarks, and evolving demand dynamics across key industrial and logistics corridors.
The Dubai industrial market in Q3 2025 continues to exhibit strong structural resilience, supported by the emirate’s entrenched role as a regional logistics, trade, and manufacturing hub. Demand fundamentals remain intact, underpinned by sustained growth in e-commerce fulfilment, third-party logistics operations, and infrastructure-led industrial activity. These demand drivers are largely non-cyclical in nature, providing stability to occupier requirements even amid broader macroeconomic uncertainty.
On the supply side, new industrial additions have trended materially lower over recent quarters, with total completions declining sharply compared to early-2024 levels. This slowdown is most evident in warehouse supply, which constitutes the majority of Dubai’s industrial stock. The contraction reflects structural constraints, including limited availability of serviced industrial land in established clusters, rising development and financing costs, and a more cautious development approach favouring phased or pre-committed projects. As a result, speculative supply has moderated, leading to a tighter pipeline entering the second half of 2025.
The resulting demand–supply imbalance has reinforced market tightness across core industrial locations such as Jebel Ali, Dubai Investment Park, and Al Quoz. This environment supports rental stability and gradual upward pressure, while also increasing tenant retention as occupiers prioritise operational continuity over relocation in a constrained market.
| Months | Factory | Warehouse | Total Industrial Supply |
|---|---|---|---|
| Q1 2024 | 15 | 493 | 508 |
| Q2 2024 | 13 | 355 | 368 |
| Q3 2024 | 2 | 252 | 254 |
| Q4 2024 | 1 | 204 | 205 |
| Q1 2025 | 2 | 491 | 493 |
| Q2 2025 | 1 | 353 | 354 |
| Q3 2025 | 0 | 268 | 268 |
Dubai’s warehouse market strengthened in Q3 2025, with leasing activity rebounding after a softer Q2. New warehouse lease registrations increased by approximately 15% quarter-on-quarter, rising from 13,866 transactions in Q2 2025 to 15,989 in Q3, while the total value of new leases grew by nearly 18%, reaching AED 583.7 million. Renewal activity continued to dominate in value terms, with renewed leases accounting for AED 628.1 million in Q3, exceeding new lease value despite a lower transaction count. This divergence highlights a constrained supply environment in which occupiers prioritise lease retention, enabling landlords to embed rental growth within renewals rather than through aggressive headline increases.
Rental benchmarks further underscore strong locational differentiation. Urban-adjacent markets such as Al Quoz (average AED 55/sqft) and Ras Al Khor (AED 50/sqft) command premiums due to proximity to consumption centres and limited land availability, while larger logistics hubs such as Jebel Ali and Dubai Investment Park (around AED 40/sqft) benefit from scale efficiencies and purpose-built infrastructure. Overall, warehouse rents recorded stable quarter-on-quarter movement alongside positive year-on-year appreciation, indicating a controlled adjustment driven by sustained demand and limited new supply rather than speculative pricing pressures.
| Quarters | New | Renewed | ||
|---|---|---|---|---|
| Number of Rentals | Rental Transaction Value | Number of Rentals | Rental Transaction Value | |
| Q1 2025 | 16,982 | 573,752,338 | 11,543 | 619,177,045 |
| Q2 2025 | 13,866 | 494,750,085 | 11,244 | 609,243,598 |
| Q3 2025 | 15,989 | 583,701,292 | 13,530 | 628,061,204 |
| Warehouse Rentals (AED / Sqft) – Q3 2025 | |||
|---|---|---|---|
| Area | Min | Max | Average |
| Dubai Investment Park | 35 | 45 | 40.0 |
| Al Quoz | 49 | 61 | 55.0 |
| Jebel Ali | 38 | 42 | 40.0 |
| Ras Al Khor | 45 | 55 | 50.0 |
Dubai’s labour camp market recorded a clear recovery in Q3 2025, reflecting renewed momentum in construction and industrial activity. New lease registrations increased by approximately 17% quarter-on-quarter, rising from 12,972 transactions in Q2 to 15,225 in Q3, while the value of new leases grew more sharply by around 24%, reaching AED 379.6 million. Renewal activity also strengthened, with renewal transactions increasing by nearly 26% QoQ and total renewal value rising to AED 288.4 million, underscoring stable workforce accommodation requirements and a growing preference for lease continuity amid limited compliant stock.
Rental benchmarks continue to show pronounced locational variation. Al Quoz remains the highest-priced market, with average rents around AED 2,000 per unit, reflecting proximity to major employment zones and higher compliance standards, while Dubai Investment Park offers more cost-efficient accommodation at approximately AED 1,200 per unit. Jebel Ali and Sonapur/Muhaisnah occupy the mid-range, balancing affordability with accessibility. Overall, labour camp rents exhibited measured quarter-on-quarter movement alongside modest year-on-year growth, indicating a controlled pricing environment shaped by affordability constraints and regulatory oversight rather than speculative pressure.
| Quarters | New | Renewed | ||
|---|---|---|---|---|
| Number of Rentals | Rental Transaction Value | Number of Rentals | Rental Transaction Value | |
| Q1 2025 | 16,143 | 405,924,327 | 9,289 | 239,101,895 |
| Q2 2025 | 12,972 | 305,910,552 | 9,348 | 253,960,761 |
| Q3 2025 | 15,225 | 379,614,969 | 11,777 | 288,369,099 |
| Labor Camp Rentals (AED/Sqf) - Q3 2025 | |||
|---|---|---|---|
| Area | Min | Max | Average |
| Al Quoz | 1800 | 2200 | 2000 |
| DIP | 1080 | 1320 | 1200 |
| Jebel Ali | 1440 | 1760 | 1600 |
| Sonapur/Muhaisnah | 1350 | 1650 | 1500 |