Warehouses · 2026
What does warehouse space in Dubai really cost?
386 registered 2026 leases from Jebel Ali Industrial 1, DIP 2 and Dubai Industrial City, 195 of them warehouses. Rents by area, what changed since 2025, and what to do before you sign or renew.
- Space wanted
- 12.3M sq ft
- Businesses looking for space, H1 2026 (Knight Frank)
- Typical rent per sq ft
- AED 56
- Median warehouse lease in DIC and DIP 2, 2026
- Renewals
- 4 in 5
- Share of 2026 warehouse leases that were renewals (Cavendish Maxwell)
Busy, but tenants are staying put
Businesses were looking for 12.3 million sq ft of space in the first half of 2026, yet four in five warehouse leases this year were tenants renewing rather than moving, and brand-new leases ran at half last year's level. Rents are still higher than a year ago, but in Dubai Industrial City they have been flat since January.
Warehouse rent per sq ft a year, by area
| Area | Low | Typical | High |
|---|---|---|---|
| Dubai Industrial City | 49 | 57 | 62 |
| DIP 2 | 33 | 55 | 65 |
| Jebel Ali Industrial | 43 | 67* | 75 |
| Dubai South | – | 55 | – |
| JAFZA | – | 40–45 | – |
| Al Quoz (top end) | – | 90 | – |
AED per sq ft a year. DIC, DIP 2 and Jebel Ali: registered 2026 leases (*mostly small units). Dubai South, JAFZA and Al Quoz: Knight Frank, because free zone leases are not in the public lease records.
Half of signed warehouse leases fall between AED 37 and 65 per sq ft. The top 10% signed at AED 76 to 119: that is new, high-spec space. Grade A in Al Quoz averages around AED 90 (Knight Frank).
What changed since 2025
| Dubai Industrial City, Jan–Sep | 2025 | 2026 | Change |
|---|---|---|---|
| Typical warehouse rent | AED 45 | AED 57 | +27% |
| Warehouse leases signed | 63 | 36 | −43% |
| Top 10% of leases | AED 61+ | AED 67+ | +10% |
| DIP 2, Jul–Sep | 2025 | 2026 | Change |
|---|---|---|---|
| Typical warehouse rent | AED 58 | AED 57 | Flat |
| Top 10% of leases | AED 85+ | AED 76+ | −11% |
| New leases, 12 months | ~1,420 | 739 | −48% |
Registered new leases. DIP 2 2025 rents use Aug–Sep 2025 only, so treat that comparison as indicative.
What 10,000 sq ft costs a year
| Area | Typical annual rent |
|---|---|
| Al Quoz | AED 900k |
| Dubai Industrial City | AED 570k |
| DIP 2 | AED 550k |
| Dubai South | AED 550k |
| JAFZA | ~AED 425k |
Typical rent for existing stock; new Grade A space costs more.
Add service charges, licence fees and fit-out. In free zones like JAFZA the extra fees can add 15–30%, so the cheap rent is not always the cheap option.
Empty land costs about a tenth of a warehouse
Open yards in Jebel Ali Industrial rent for around AED 4 to 6 per sq ft of land a year. A built warehouse next door rents for around AED 55 to 65, more than ten times that. If you only need to park or store outside, a yard is far cheaper. For landowners, building on an empty plot is the biggest value jump available.
Most leases signed are small. Most demand is big.
| Size | Leases signed | Space wanted |
|---|---|---|
| Under 10,000 sq ft | 71% | 5% |
| 10,000–50,000 sq ft | 22% | 36% |
| 50,000–100,000 sq ft | 2% | 32% |
| 100,000 sq ft + | 5% | 27% |
Leases signed: 227 registered 2026 warehouse and land leases. Space wanted: Knight Frank, H1 2026 requirements.
Seven in ten leases signed this year were under 10,000 sq ft, but six in ten businesses looking for space want 50,000 sq ft or more. Much big space is leased in free zones or built to order, which these records do not cover. Typical rent is AED 56 under 10,000 sq ft and AED 57 for 10,000–50,000 sq ft; most deals above 50,000 sq ft are land, at around AED 4.
For tenants: five things to do before you sign or renew
- Get a quote to move before you renew4 in 5 tenants renewed this year. New space is arriving and landlords in some areas are offering concessions of up to 15% (JLL).
- Compare total cost, not just rentAdd service charges, licence and free zone fees, then compare.
- Renting several units? Ask for a block dealThree units let together in Dubai Industrial City went for about 30% below normal rent.
- Only need space for a few months? You canLeases of 2 to 6 months were signed this year, mostly at or a little above normal rent.
- Pay for spec, not the addressSame-size units in one DIP 2 estate rented from AED 23 to 107. Power, cooling and mezzanines decide the price.
For landlords: five things to keep your warehouse let
- Price to the evidence, by gradeThe typical signed lease is AED 56, and high-spec space signs at AED 76 to 119. Know which one you have before you set the rent.
- Keep the tenant you have4 in 5 leases are renewals. A happy tenant is worth more than a small rent rise.
- Show off your specPower, cooling, height and mezzanine justify a higher rent. Put them in every listing.
- Got empty land? Build or lease itLand earns about a tenth of what a building does.
- Watch new space nearbyMore new warehouses are coming, below.
Where new warehouses are coming
| Year | New supply |
|---|---|
| 2026 | 6.6M sq ft |
| 2027 | 2.2M sq ft |
| 2028 | 5.9M sq ft |
New supply by year: Knight Frank, H1 2026.
New schemes are under way in Al Warsan (a large new park, first phase 2026), Jebel Ali Industrial, National Industries Park (2026 to 2027), DIP 2 (several schemes, 2026 to 2027), JAFZA (built-to-order centres, 2027) and Dubai South (multi-tenant units, 2026). Much of 2026's new space is already taken. For tenants, more choice is coming; for landlords, older units will feel it first.
Sources: Dubai Land Department Ejari lease data via DXB Interact (386 new 2026 leases in Jebel Ali Industrial 1, Dubai Industrial City and DIP 2); Knight Frank UAE Industrial and Logistics H1 2026; Cavendish Maxwell H1 2026; JLL Q2 2026. Market commentary, not a valuation or investment advice. Looking for warehouses? See what I cover.