Latest news with #FaisalDurrani
Khaleej Times
15 hours ago
- Business
- Khaleej Times
UAE: Industrial, logistics firms moving to Northern Emirates amidst rising rents
Industrial and logistics companies in the UAE are increasingly looking at the Northern Emirates amidst rising rents in Dubai and Abu Dhabi. According to the latest study released by Knight Frank on Tuesday, companies are preferring smaller and mid-sized units of 25,000 to 50,000 sqft due to rising rents and intense competition for limited new supply. Industrial rents have risen across the emirates in January-June 2025 following a record-breaking 2024, during which industrial and logistics space requirements in Dubai rose by 225 per cent to reach 40.6 million sqft. 'Overall, upward rental pressure remains high, especially in well-established submarkets. These increases reflect strong occupier appetite for well-located industrial stock, while availability remains limited. Occupiers are also becoming more strategic, with a growing preference for mid-sized units,' said Faisal Durrani, partner and head of Research, Mena, Knight Frank. Faisal Durrani, Partner – Head of Research, MENA, said: "Due to the strong macro-economic growth of the UAE, the country has attracted large-scale and multinational manufacturing companies across various sectors." 'Industrial demand continues to be led by core sectors – logistics, manufacturing and industry, and retailers and traders remain the top three contributors to new requirements, together accounting for more than half of the total demand,' said Durrani. 'However, a lack of stock is curbing new enquiries, with 6.3 million sqft of new requirements recorded in Q1 and 5.2 million in Q2, bringing the total to 11.5 million sqft for H1 2025, down by a third on the first half of 2024 as occupiers take a 'wait and see' approach, while others are adjusting their size requirements and some are also opting for locations in the Northern Emirates,' he added. New supply The Dubai industrial market is critically undersupplied, with only 780,000 sqft of spec space expected this year, it said. Knight Frank is tracking approximately 7.2 million sqft of new industrial and logistics space due to be delivered to the Dubai market over the next four years. The biggest milestone will be in Q3 2026, with the completion of Phase 1 of Terralogix in Warsan, Dubai's largest private logistics park. This development will introduce much-needed scale and flexibility, with 550,000 sqft due to be completed in Phase 1. The full project will be delivered over three phases, totalling 1.8 million sqft. In total, nearly 2.8 million sqft of new industrial and logistics space is expected to be delivered in 2026 – the largest yearly addition in recent years. Free zones in demand According to Knight Frank, Al Quoz remained the highest-priced location, with grade-A rents of Dh85 per sqft in the second quarter of 2025, marking a 31 per cent year-on-year increase. Grade-B stock in the same area commands Dh58 per sqft, up 21 per cent year-on-year. Dubai Investments Park saw one of the steepest annual uplifts, with average rents up 33 per cent over the year to Dh60 per sqft. In Abu Dhabi, Kezad Musaffah (ICAD) and Musaffah were standout performers, recording year-on-year rent increases of 57 per cent and 52 per cent, respectively. Al Markaz saw a 14 per cent year-on-year increase, with rents holding at Dh375 per square metre in Q2 2025, up from Dh330 per sqm at the same point last year. Knight Frank pointed out that as supply tightens in Dubai, occupiers are actively exploring alternative emirates, such as Umm Al Quwain. This has caused industrial and logistics rents in the Northern Emirates to rise rapidly – up by 40 per cent year-on-year, from around Dh25 per sqft to Dh40 per sqft. Knight Frank noted that occupiers with favourable lease terms secured in recent years are opting to remain in situ, often postponing expansion plans rather than facing a market with limited options and higher rental prices. Many are waiting for a new supply expected to become available over the next two to four years.
Entrepreneur
16 hours ago
- Business
- Entrepreneur
Demand Outstrips Supply in Dubai's Industrial and Logistics Market
You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media. ndustrial and logistics occupiers are increasingly targeting smaller units and looking beyond traditional Dubai and Abu Dhabi hotspots as intense competition for limited new supply continues to drive up rents, according to the H1 2025 Dubai and Abu Dhabi Industrial Markets Review report by global property consultancy Knight Frank. The report reveals how industrial rents have risen across the emirates in H1 following a record-breaking 2024, during which industrial and logistics space requirements in Dubai rose by 225% to reach 40.6 million sqft. Faisal Durrani, Partner – Head of Research, MENA, said, "Overall, upward rental pressure remains high, especially in well-established submarkets. These increases reflect strong occupier appetite for well-located industrial stock, while availability remains limited. Occupiers are also becoming more strategic, with a growing preference for mid-sized units. The 25,000-50,000 sqft band, for instance, has now become the most sought-after, reflecting a shift from the larger spaces favoured in 2024 and also the lack of larger units." Al Quoz remains the highest-priced location, with grade-A rents of AED 85 psf in Q2 2025, marking a 31% year-on-year increase. Grade-B stock in the same area commands AED 58 psf, up 21% year-on-year. Dubai Investments Park saw one of the steepest annual uplifts, with average rents up 33% over the year to AED 60 per sqft, underscoring its position as a key logistics and distribution hub. In Abu Dhabi, KEZAD Musaffah (ICAD) and Musaffah were standout performers, recording year-on-year rent increases of 57% and 52%, respectively. Al Markaz saw a 14% year-on-year increase, with rents holding at AED 375 psm in Q2 2025, up from AED 330 psm at the same point last year. As supply tightens in Dubai, occupiers are actively exploring alternative emirates, such as Umm Al Quwain. This has caused industrial and logistics rents in the Northern Emirates to rise rapidly – up by 40% year-on-year, from around AED 25 psf to AED 40 psf.
Arabian Business
4 days ago
- Business
- Arabian Business
Dubai real estate: Property sales break records with 50,000+ Q2 transactions worth $72.8bn
Dubai's residential property market has reached unprecedented levels in the second quarter of 2025, with transaction volumes and values both setting new records, according to analysis from Knight Frank. Residential prices climbed 13.7 per cent compared to the same period last year, with villas leading the growth at 16 per cent year-on-year, Knight Frank's Dubai Residential Market Review Q2 2025 said. The emirate recorded over 51,000 home sales in Q2 2025, marking the highest quarterly figure on record. Dubai's residential market soars higher Total sales for the first half of 2025 reached more than 94,000 transactions, positioning the market to exceed the 169,000 deals completed in 2024. The value of residential sales in the first six months hit AED 268 billion, representing a 41 per cent increase from the corresponding period in 2024. Citywide residential prices rose 3.4 per cent during Q2 2025, reaching an average of AED 1,809 per square foot. Current values now stand 21.6 per cent above the previous market peak recorded in 2014. Faisal Durrani, Partner – Head of Research, MENA, said: 'The sustained growth in prices – now approaching five consecutive years since the current cycle began in November 2020 – is a clear sign of a more stable and predictable market environment. This is precisely the kind of consistency that global investors seek. Knight Frank's forecasts for 2025 remain unchanged, with 8 per cent growth expected in the mainstream market and 5 per cent in the prime segment. 'A segment to watch remains the villa market. Just 20 per cent of the planned housing supply through to the end of 2029 will fall in the villa category and with demand remaining centred on stand-alone family homes, the delta between villa and apartment price performance may well continue to widen.' Knight Frank maintains its 2025 forecasts, projecting 8 per cent growth in the mainstream market and 5 per cent in the prime segment. Villa values reached AED 2,172 per square foot, marking a 4 per cent quarterly increase and a 49.3 per cent rise since 2014. The prime residential segment achieved new records, with values across ten key communities rising 16 per cent over the past 12 months. The average prime transacted price now stands at AED 3,850 per square foot. Off-plan sales dominated the market, accounting for nearly 70 per cent of all transactions in Q2 2025. This reflects growing investor confidence and the appeal of new developments across Dubai. Prime areas including Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, and Dubai Hills Estate remain the most sought-after locations, particularly among international high-net-worth individuals. Sales of homes priced above $10 million reached AED 9.5 billion in Q2 2025, the highest quarterly figure on record. For the first time since Q2 2023, apartments outpaced villas in the $10 million-plus segment, with 80 apartment sales compared to 63 villa transactions. Will McKintosh, Regional Partner – Head of Residential, MENA, added: 'The market is increasingly being shaped by genuine buyers rather than speculators, with resale activity within 12 months of purchase now at just 4–5 per cent, compared to 25 per cent in 2008. This shift toward end-user activity is a positive indicator of the market's growing maturity and long-term sustainability. 'As we approach the fifth year of Dubai's current growth cycle in November 2025, we are seeing the property market mature and align with global norms in a meaningful way. It has become more stable, more transparent and is underpinned by solid fundamentals. This shift is drawing in more long-term investors and end-users and is helping to strengthen Dubai's position as one of the most attractive residential markets globally.' Knight Frank's annual Destination Dubai 2025 report identifies the emergence of 'accidental millionaires' – homeowners whose properties have appreciated beyond $1 million due to market inflation. As of Q2 2025, Dubai contains 110,000 such homes, with 37,000 owned by individuals who originally purchased below the million-dollar threshold. The current growth trajectory positions 2025 to surpass the AED 367 billion in residential sales achieved in 2024, with sustained momentum across all market segments.
Yahoo
5 days ago
- Business
- Yahoo
Dubai housing prices continue to soar, with villas leading the charge: Knight Frank
A villa in Signature Villas, Emirates Hills in Dubai (Picture: Knight Frank MENA) The Dubai residential market continued to break records in 2Q2025, sustaining momentum that has propelled property values in the emirate. According to research by Knight Frank, Dubai housing prices grew 3.4% q-o-q and 13.7% y-o-y to hit an average of AED1,809 psf ($629 psf) in 2Q2025, marking a new all-time high. Residential prices have now surged 21.6% above the previous market peak recorded in 2014. 'The sustained growth in prices - now approaching five consecutive years since the current cycle began in November 2020 - is a clear sign of a more stable and predictable market environment,' remarks Faisal Durrani, partner and head of research at Knight Frank Middle East and North Africa (MENA). The rise in prices coincides with quarterly sales volume hitting a new record of 51,000 last quarter. Off-plan sales accounted for nearly 70% of all transactions, which signals growing investor confidence in new Dubai developments, says Knight Frank. 'The market is increasingly being shaped by genuine buyers rather than speculators, with resale activity within 12 months of purchase now at just 4–5%, compared to 25% in 2008,' adds Will McKintosh, regional partner and head of residential at Knight Frank MENA. Read also: Dubai homes sold for over US$10 mil hit all-time high in 2Q2025: Knight Frank Over 94,000 homes in Dubai have now been sold since the start of the year, putting the market firmly on track to exceed the 169,000 deals recorded for the whole of 2024. Overall, total residential sales value clocked in at AED268 billion in 1H2025, 41% higher y-o-y. Within the Dubai property landscape, the villa segment has continued to lead the charge in price growth, outperforming apartments. Villa prices rose 4% q-o-q to AED2,172 psf in 2Q2025, bringing the segment's total price growth since 2014 to 49.3%. According to Durrani, momentum in the villa segment will likely keep growing. 'Just 20% of the planned housing supply through to the end of 2029 will fall in the villa category and with demand remaining centred on stand-alone family homes, the delta between villa and apartment price performance may well continue to widen,' he explains. Meanwhile, the prime residential segment has also logged robust growth. Knight Frank data shows that the average transacted price across ten key communities rose 16% over the past 12 months to hit AED3,850 psf. In addition, sales of Dubai homes priced above US$10 million ($12.79 million) reached AED9.5 billion in 2Q2025, the highest quarterly figure on record. The Dubai property market "has become more stable, more transparent and is underpinned by solid fundamentals," observes McKintosh. He adds: "This shift is drawing in more long-term investors and end-users and is helping to strengthen Dubai's position as one of the most attractive residential markets globally.' Knight Frank has maintained its forecast for Dubai housing price growth in 2025 at 8% for the mainstream market and 5% for the prime segment. Read also: Dubai remains top market for homes transacted for over US$10 mil: Knight Frank See Also: Singapore Property for Sale & Rent, Latest Property News, Advanced Analytics Tools New Launch Condo & Landed Property in Singapore (COMPLETE list & updates) Dubai homes sold for over US$10 mil hit all-time high in 2Q2025: Knight Frank Dubai remains top market for homes transacted for over US$10 mil: Knight Frank Dubai's real estate market on a hot streak En Bloc Calculator, Find Out If Your Condo Will Be The Next en-bloc HDB Resale Flats Up For Sale, Affordable Units Available
The National
7 days ago
- Business
- The National
More than 51,000 homes sold in Dubai in record second quarter
More than 51,000 homes were sold in Dubai in the second quarter of this year, marking a quarterly record amid strong demand from buyers, a report has shown. The figures are up 22.8 per cent year-on-year, property consultancy Knight Frank said in its report on Wednesday. In the first half of the year, total home sales reached more than 94,000, putting the market firmly "on track to exceed" 169,000 transactions recorded in 2024, it added. The total value of residential sales in the January to June period also surged to Dh268 billion ($73 billion), a 41 per cent increase compared to the same period last year. The market is poised to surpass the Dh367 billion in home sales reached last year, the consultancy said. Residential prices grew by an average of 13.7 per cent annually in second quarter, with villa prices rising by 16 per cent year-on-year. 'The sustained growth in prices, now approaching five consecutive years since the current cycle began in November 2020, is a clear sign of a more stable and predictable market environment,' said Faisal Durrani, partner and head of research, Mena, at Knight Frank. 'Knight Frank's forecasts for 2025 remain unchanged, with 8 per cent growth expected in the mainstream market and 5 per cent in the prime segment.' Dubai's property market has been booming in recent years, having benefited from government initiatives such as residency permits for retired and remote workers, expansion of the 10-year golden visa programme and overall growth in the UAE's economy on diversification efforts. This month, a new scheme was also launched to help Emiratis and UAE residents who do not own any freehold residential property in the emirate get on the property ladder. In the first half of 2025, the volume and value of all real estate transactions in Dubai rose sharply amid the entry of more than 59,000 new investors into the booming market, the Dubai Media Office said on Sunday, quoting Dubai Land Department (DLD) data. The number of transactions reached 125,538, up nearly 26 per cent from 99,947 during the first six months of last year, it said. The value of these transactions rose about 25 per cent to about Dh431 billion, 'highlighting the strong growth momentum in the market', the report said. Luxury driving growth The luxury segment recorded strong growth in the second quarter, with prime residential values across 10 key communities rising by 16 per cent over the past 12 months, according to Knight Frank. The average prime transacted price now stands at Dh3,850 per square foot. Villas continued to outperform the broader market in the second quarter, with values climbing to Dh2,172 per square foot, marking a 4 per cent quarterly increase. Prime residential areas such as Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, and Dubai Hills Estate remained the most sought-after locations, particularly among international high-net-worth individuals, it said. Sales of homes priced above $10 million reached Dh9.5 billion in second quarter of 2025, 'the highest quarterly figure on record", according to the consultancy. 'The market is increasingly being shaped by genuine buyers rather than speculators, with resale activity within 12 months of purchase now at just 4–5 per cent, compared to 25 per cent in 2008,' said Will McKintosh, regional partner and head of residential, Mena, at Knight Frank. 'This shift toward end-user activity is a positive indicator of the market's growing maturity and long-term sustainability.' Knight Frank's report also highlighted the emergence of "accidental millionaires" – homeowners whose properties have appreciated beyond $1 million due to market trends. As of the second quarter, there are 110,000 such homes in Dubai, with 37,000 owned by individuals who originally purchased below the million-dollar threshold.
