Al Qouz is one of the oldest and most popular industrial area developed by Dubai Municipality. It is located at the Shaikh Zayed Road on one side and Al Khail Road from the other side. This makes Al Qouz the closest and the only accessible industrial area from the mainstream Shaikh Zayed Road. It is also home to the some of the major mass accommodation and industries. Al Qouz is subdivided into four parts, mainly comprising of small to big size industries, major showrooms, and labor accommodation; and partially local residential housing by north.
Due to its close proximity, it is the most expensive industrial area in Dubai. Current rent for labor accommodation is as high as AED 900 per person per month, and the rent for warehouse starts from AED 45 per square feet. The rent for retail space on the main street goes as high as AED 450 per square feet.
DUBAI INVESTMENTS PARK
Dubai Investments Park is a self-contained master plan consisting of Industrial Park, Warehousing, Commercial Complex, Residential Community, and Hospitality. Strategically located on Mohammad Bin Zayed Road with close proximity to Jabal Ali Free Zone, Downtown, Dubai South and Al Maktoum International Airport makes DIP the most sought after location in the region.
Unlike most master plans, DIP provides a long-term leasehold to the investors as opposed to sale. This phenomenon has attracted major investments to the area. During last few years DIP has experienced tremendous growth particularly in the labor accommodation, warehousing and residential due to its strategic location and low development costs.
Currently, investors in DIP are enjoying a double-digit return on their investment. The rental yield stands at healthy 12% – 14%. With the Expo 2020 nearing demand for labor accommodation is all time high. Current rent for labor accommodation is as high as AED 900-950 per person per month; for warehouse, it is between AED 38 – 45 and office space ranges from AED 60-65 per square feet.
JEBEL ALI FREE ZONE AUTHORITY (JAFZA)
Jebel Ali Free Zone Authority (Jafza) is the most established industrial free zone in Dubai. It has direct access to Jebel Ali Port and is connected to a surrounding external road network that provides good access to Dubai. It comprises a 48 million square meter industrial and commercial space, with over 7,200 companies. All land within Jebel Ali Free Zone is leasehold from the government of Dubai. Leases are currently granted on a 20-year basis. The land lease rents relate directly to the location within the zone. As a range, land lease rates are between Dh30 and Dh100 per square meter per year. Rental rates vary depending on specification and location. Typically, Jafza warehouse rents range from Dh28-Dh38 per square foot.
Mohammed Ismail Sultan
Deja Vu Real Estate