Demand for industrial property increasing

28.07.2014
There has been a significant increase in demand for industrial property in Dubai with some areas witnessing double digit rental growth; however, despite this availability seems limited. Industrial property seems to be in high demand in Dubai but despite this, supply is limited.
Rents have increased 25% year-on-year in the second quarter while rental values across seven out of nine districts tracked by Knight Frank have recorded double digit growth, the consultancy revealed.
Gulf News reported that class 2 buildings in Dubai Investment Park (47%), Jebel Ali (39%) and Ras Al Khor (36%) all saw double digit rental growth in the April to June period. Meanwhile, class 1 buildings in Dubai Investment Park, Jebel Ali Free Zone (Jafza) and Al Quoz recorded rental growth of 29%, 12% and 9%, respectively.
Knight Frank’s Industrial Research Report for the first half of 2014 found that while demand for industrial property in Dubai is increasing, availability continues to be limited. The report said enquiries for industrial property were “significantly higher” in the first half of 2014 compared to the six months earlier. But due to lack of available stock, quarter-on-quarter rental value in the second quarter saw muted growth of 1 per cent.

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Lease process (Rent out)

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership

1 day

Ad placement:

  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.

Up to 2 days

Signing of the lease agreement

Expenses of the seller:

None

Additional services:

Property management

Lease process (Rent)

1 hour

Contract of the lessee and agency.

Up to 5 days

Real estate search.

Selection of optimal options.

Up to 2 days

Signing of the lease agreement

Expenses of the lessee:

-5% agency commission of the annual contract price

Additional services:

None

Purchase process

1 hour

Contract of the tenant and agency.

~ 2 weeks secondary

~ 3 weeks new building

Property Selection

Selection of optimal options

1 Week

Registration of the contract of purchase / sale

Customer charges:

  • 2% from purchase at transaction
  • 4% - registration of the transaction at registration

Additional services:

Property management

Sales Process

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership

1 day

Ad placement:

  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.

Up to 2 days

Signing of the lease agreement

Expenses of the seller:

None

Additional services:

None

the management process

1 hour

Contract of the owner and agency

1 year

Rendering of management services

1 day

Reporting

Expenses of the owner:

5% of the annual rental price

Additional services:

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1 hour

Contract of the tenant and agency.

From 3 days

Selection of optimal investment options

1 Week

Registration of the contract of purchase / sale

Expenses of the investor:

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  • 4% - registration

Additional services:

Property management