A. SREENIVASA REDDY (ABU DHABI)
Industrial warehousing assets are yielding good returns on investments, according to JLL’s report on the UAE’s industrial & logistics real estate market.
For Prime and Grade A assets, yields ranged from 7.25% to 8.25% across Abu Dhabi and Dubai, while Grade B assets recorded yields between 8.25% and 9.25%.
Abu Dhabi maintained a marginal lead of 25 basis points over Dubai in yield rates, reflecting differences in market dynamics between the two cities.
JLL noted that the industrial and logistics asset class has demonstrated stability over the past two years, with all grades maintaining consistent yield ranges and slight compression observed in Q4 2025 for Prime and Grade A assets. The report said the UAE’s stable industrial yields offer predictable income but limited capital growth potential.
“The consistent returns indicate a mature, low-risk market with strong fundamentals, making it ideal for income-focused strategies,” the report said.
The report highlighted that robust macroeconomic fundamentals, including a growing non-oil economy, population growth, and enhanced business competitiveness, are driving demand across the industrial and logistics sector.
In Abu Dhabi, KEZAD (Khalifa Economic Zones Abu Dhabi) is playing a key role as it reaches operational maturity and diversifies into new development categories, bringing significant new industrial stock to market. Developments include specialised facilities such as the Aquaculture Zone, Rahayel Auto City, Metal Park, Al Ain Business Park, and new logistics parks.
JLL said sustained infrastructure investments and national industrial strategies, including Operation 300bn and Abu Dhabi’s Industrial Strategy 2031, are reinforcing long-term demand for modern warehousing and logistics facilities.
Taimur Khan, Head of Research, MEA, JLL, said: “The UAE’s industrial landscape is witnessing a significant transformation. As this market matures, an accelerated focus on technological efficiency, sustainability, and human-centric design will be crucial to meet the diverse needs of international occupiers and optimise new logistical models.
"Supported by streamlined, long-term trade policies and GCC-wide government infrastructure development, this evolution is driving sustained demand for specialised warehousing and logistics solutions, reinforcing the UAE’s position as a regional gateway for trade, manufacturing and logistics.”
Abhishek Mittal, Head of Industrial, JLL, added: “Robust macroeconomic fundamentals, including a growing non-oil economy, population and enhanced business competitiveness, are driving demand and resilience in the UAE’s industrial market. This is solidifying the nation's position as a premier global logistics hub and generating substantial investor confidence, fuelling demand for advanced, flexible warehousing solutions that meet evolving occupier needs.”