Warehouse rents in Dubai have climbed for three years running, and the gap between areas is wider than most first-time tenants expect. A 5,000 sq ft unit can cost a third more in Al Quoz than the same space in Dubai Industrial City. This guide sets out what warehouses are actually being offered at today, area by area, what drives the difference, and what to budget for on top of the rent.
The market in 2026: still rising, but more slowly
Rents are still going up, but the pace has eased. JLL’s research for the second quarter of 2026 puts Dubai industrial rents 6.8% higher than a year earlier and 2.3% higher than the previous quarter. JLL also notes that some landlords are now offering flexibility, with rental concessions of up to 15% in certain areas. That was rare a year earlier.
Cushman & Wakefield’s 2025/26 update describes the run-up: rents rose around 18% in the year to October 2025 and Grade A space was about 95% occupied. Demand is strongest for mid-sized units of 10,000-50,000 sq ft. More than 7 million sq ft of new stock is under development in Al Warsan, National Industries Park and Dubai South, which should ease pressure over time.
Asking rents by area
The figures below are asking rents for warehouses on the Gulf Life books in September 2026. Rents are per square foot per year, excluding VAT. They are what landlords are asking today, so they are closer to the market than older transaction averages. The number of units behind each figure is shown, so you can judge how firm it is.
| Area | Typical asking rent (AED / sq ft / year) | Median | Unit sizes we see | Units |
|---|---|---|---|---|
| Dubai Investments Park (DIP) | 65 – 83 | 75 | 2,400 – 24,000 sq ft | 25 |
| Al Quoz Industrial Areas 1-4 | 90 – 101 | 90 | 2,500 – 15,000 sq ft | 18 |
| Dubai Industrial City (DIC) | 62 – 75 | 70 | 4,000 – 46,000 sq ft | 11 |
| Ras Al Khor Industrial | 90 – 120 | 120 | 2,200 – 3,500 sq ft | 5 |
| Al Layan | around 55 | 55 | 3,300 – 11,000 sq ft | 3 |
| Umm Al Quwain | 40 – 43 | 40 | 16,500 – 26,000 sq ft | 3 |
Source: Gulf Life Real Estate inventory, September 2026. “Typical” is the middle half of asking rents; smaller samples are indicative only.
Why the same warehouse costs different amounts in different places
- Distance to the city. Al Quoz, Ras Al Khor and Al Qusais sit close to central Dubai. They suit last-mile delivery, showrooms and trade counters, and they charge for it. DIP and DIC are further out, closer to Jebel Ali Port and Al Maktoum International Airport, and cheaper per foot.
- Unit size. Small units cost more per square foot almost everywhere. In our DIP stock, units under 10,000 sq ft are offered at around AED 70 and larger ones at around AED 75. That’s because the larger units in DIP are newer and better specified.
- Power and height. A unit with 400 kW or more, or 10 m+ clear height, rents at a premium. Upgrading power with DEWA later costs time and money, so specs are priced in.
- Grade and age. Newer compounds with proper loading, fire systems and yard space get more than older sheds.
- Free zone or mainland. Free zone warehouses (JAFZA, Dubai South) follow their own pricing and lease rules. See free zone vs mainland.
A worked example
For a 5,000 sq ft warehouse at the median asking rents above:
- DIC at AED 70: AED 350,000 a year
- DIP at AED 75: AED 375,000 a year
- Al Quoz at AED 90: AED 450,000 a year
Commercial rent in the UAE carries 5% VAT, so add that to each figure.
Costs on top of the rent
- Security deposit: commonly 5-10% of the annual rent, refundable at the end of the lease.
- Agency fee: if you use a broker. Agree it upfront.
- Ejari registration: a small fee to register a mainland lease (free zones have their own registration).
- DEWA: connection or transfer, plus a refundable deposit that depends on the load.
- Civil Defence and fit-out approvals: fire and life-safety sign-off is needed before most premises can be licensed.
- Fit-out: racking, offices, cold rooms or extra power.
Our step-by-step guide to renting a warehouse covers each of these in order.
How to pay less
- Offer fewer cheques. One or two cheques often buys a better rate than four.
- Ask for a rent-free fit-out period, especially on larger units or longer leases. As JLL notes, concessions are back in some areas.
- Look one area over. If you don’t need to be near the city, DIP or DIC can save AED 15-25 per sq ft over Al Quoz.
- Specify what you need, not what you might need. Paying for 1,000 kW when you use 150 kW is expensive.
Warehouses available now
- 2,600 sq ft warehouse, Dubai Investments Park 2
- 2,850 sq ft warehouse, Al Quoz Industrial Area 3
- 16,307 sq ft warehouse with 450 kW, Dubai Industrial City
- 35,274 sq ft warehouse, Dubai Industrial City
Looking for a warehouse in Dubai? Most of our stock never reaches the website – it moves too fast. Tell us the size, power and area you need and we will send matching units with photos and specs, usually the same day.
Frequently asked questions
What is the average warehouse rent in Dubai?
Across the main mainland industrial areas, most warehouses are offered at roughly AED 60-100 per sq ft per year, excluding VAT. DIC and DIP sit toward the lower end; Al Quoz and Ras Al Khor toward the top.
Which area has the cheapest warehouses in Dubai?
Among Dubai’s main industrial areas, Dubai Industrial City and Dubai Investments Park offer the lowest rents per sq ft. Areas outside Dubai, such as Umm Al Quwain, are cheaper again but further from customers and ports.
Is VAT charged on warehouse rent?
Yes. Leasing commercial property, including warehouses, is standard-rated for UAE VAT at 5%.
Can I rent a warehouse monthly in Dubai?
Some landlords offer short-term or monthly terms, usually on small or shared units. The effective rate is higher than on an annual lease, so it suits trial periods or seasonal stock.
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