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Dubai industrial lease contracts rise 25.7% in Q3 2026
New leasing activity climbed year-on-year as market entrants and expanding operators drove demand for warehouse and logistics space.
New industrial lease contracts in Dubai rose 25.7 percent year-on-year in the third quarter of 2026, according to a market report published by JLL on 12 November 2026. The increase reflected demand from companies entering the market and existing operators expanding their facilities, JLL stated in the report.
Occupancy levels and lease renewals#
Occupancy rates in premium industrial zones in Dubai and Abu Dhabi approached full capacity during the quarter, JLL reported, citing limited availability of high-quality space. Lease renewals in Dubai fell 8.9 percent quarter-on-quarter as some tenants relocated to new sites or developed existing facilities, the report stated. The number of renewed contracts remained 9.5 percent higher than the same period in 2025, according to the data.
Average rents and supply constraints#
Average industrial rents in Dubai reached AED 50 per square foot in Q3 2026, a year-on-year increase of 5.9 percent, JLL reported. The firm attributed the rise to reduced availability of modern warehouses and high-quality industrial space amid continued demand for logistics facilities. Future Grade A warehouse projects are expected to ease supply constraints, the report stated.
Abu Dhabi market and infrastructure investment#
Average rents in Abu Dhabi reached AED 489 per square metre in the third quarter, up 1.6 percent year-on-year and 0.6 percent quarter-on-quarter, according to JLL. The more moderate growth reflected regulatory limits on rent increases, with exceptions for certain properties and new projects, the report stated. Investment in logistics infrastructure in Abu Dhabi continued to grow during the period, JLL reported.
Multimodal connectivity projects#
Multimodal logistics connectivity projects under development in the region will accelerate land transport across GCC states and strengthen the UAE's position as a regional logistics gateway, JLL stated. The Trusted Customs Corridor linking Abu Dhabi Ports Group and Etihad Rail is among the projects expected to support long-term freight movement, according to Abhishek Mittal, head of industrial and logistics consulting for the Middle East and Africa at JLL, quoted in the 12 November report.
Sources1 source across 1 domain
- emaratalyoum.comEmarat Al YoumDubai industrial lease contracts rose 25.7% year-on-year in Q3 2026, average rents reached AED 50 per square foot, lease renewals fell 8.9% quarter-on-quarter, Abu Dhabi rents reached AED 489 per square metre
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