Industrial Real Estate: The Most Lucrative Segment in Dubai's Property Market

Dubai, UAE — October 2025

In a recent address to international investors, Dr. Fouad Ouakili, an elite property consultant with 28+ years of experience, highlighted a crucial truth that many overlook: Industrial real estate is the most lucrative segment of Dubai's property market.

The Rise of Dubai's Industrial Market

As global supply chains continue to evolve and the demand for warehousing, logistics, and manufacturing facilities increases, Dubai has positioned itself as a pivotal hub connecting East and West. The UAE's strategic location, state-of-the-art infrastructure, and business-friendly policies have attracted corporations from around the world — all of which require robust industrial facilities.

Unlike residential real estate, which is subject to market sentiment and cyclical trends, industrial properties benefit from long-term lease agreements, lower vacancy rates, and higher tenant retention. Companies don't frequently relocate their warehouses or production facilities, creating a stable income stream for property owners.

Dubai Industrial City (DIC): The Prime Opportunity Zone

At the heart of this growth lies Dubai Industrial City (DIC), one of the world's largest purpose-built industrial parks. Spanning over 560 million square feet, DIC hosts over 1,000 companies across various sectors including:

• Manufacturing and production
• Logistics and warehousing
• Automotive and spare parts
• Food and beverage
• Engineering and construction materials
• E-commerce fulfillment centers

What makes DIC particularly attractive to investors is its integrated infrastructure — excellent connectivity to Jebel Ali Port, Al Maktoum International Airport, and major highways, combined with cost-effective leasing options and 100% foreign ownership rights.

Key Investment Advantages in DIC

• High Occupancy Rates: DIC maintains an occupancy rate exceeding 92%, demonstrating sustained demand
• Impressive ROI: Industrial properties in DIC typically yield returns between 14% to 25%, with certain specialized facilities achieving over 50%
• Long-Term Stability: Industrial tenants typically sign multi-year leases (5-10 years), ensuring predictable cash flow
• Growing E-Commerce Demand: The boom in e-commerce has created unprecedented demand for last-mile delivery centers and fulfillment warehouses
• Government Support: Dubai's D33 Economic Agenda prioritizes industrial growth, with significant infrastructure investments planned
• Lower Maintenance Costs: Industrial properties require significantly less maintenance compared to residential or hospitality assets

A Message to Investors

Dr. Ouakili's message to the investment community is clear: "The smart money is moving toward industrial real estate. While others chase high-profile residential towers with unpredictable returns, savvy investors are securing tangible, inflation-protected assets in the industrial sector."

He further emphasizes that success in industrial real estate requires expertise, market intelligence, and strategic partnerships. "This isn't about buying any warehouse and hoping for the best," he explains. "You need to understand zoning regulations, tenant profiles, supply chain dynamics, and future infrastructure developments. That's where seasoned consultants add exponential value."

Who Should Invest in Dubai's Industrial Real Estate?

• Institutional Investors seeking stable, long-term returns
• Family Offices looking to diversify portfolios with inflation-resistant assets
• Private Equity Firms targeting high-yield commercial properties
• International Corporations wanting to own their operational facilities
• HNWIs (High Net Worth Individuals) seeking passive income streams with minimal management overhead

The Road Ahead

With the UAE's commitment to becoming a global manufacturing and logistics powerhouse, industrial real estate is positioned for sustained growth over the coming decade. The country's strategic investments in infrastructure, combined with incentives for manufacturers and logistics providers, create a compelling case for investors to act now.

As Dr. Ouakili concludes: "We're at the cusp of a golden era for industrial real estate in Dubai. The question isn't whether to invest — it's how quickly can you position yourself to capitalize on this extraordinary opportunity."