Warehouse for sale in Dubai (2026): yields, locations and how to finance one

A warehouse for sale in Dubai is priced on its rent, and JLL put prime and Grade A industrial yields in Dubai and Abu Dhabi at 7.25 to 8.25 per cent in its 2026 outlook, published in February 2026. Knight Frank recorded Grade A rents of AED 90 per square foot a year in Al Quoz and AED 55 in Dubai South, where rents rose 22 per cent, in its review of 29 July 2026.

This guide is for investors, family offices and owner occupiers buying industrial property in Dubai: a let warehouse, a build to suit project or a plot. It covers title, rents and yields, costs, bank finance and a worked example. It is not tax or legal advice.

Where can a foreigner or a company own a warehouse in Dubai?

Ownership starts with Law No. 7 of 2006, issued on 13 March 2006. Article 4 restricts ownership to UAE nationals, GCC nationals, companies wholly owned by them and public joint stock companies, and lets non UAE nationals hold freehold title, or usufruct or leasehold of up to 99 years, in areas the Ruler designates.

Regulation No. 3 of 2006, issued on 7 June 2006, names those areas by plot. Its freehold schedule includes industrial land: plots in Jebel Ali, Al Quoz 3, Al Quoz Industrial Area 2 (plots 010 and 030), Al Quoz Industrial Area 3 (plot 028) and Ras Al Khor (plot 165). Resolution No. 25 of 2021, issued on 12 July 2021, added plot 64 in Jebel Ali Industrial Third and plot 33 in Ras Al Khor Industrial Third for usufruct and lease of up to 99 years. Al Quoz is therefore not closed to foreign buyers as a whole, but a warehouse outside those plots can be owned only by UAE or GCC owners, so the plot number decides.

The vehicle matters too. Al Tamimi and Company wrote in October 2017 that, under Land Department policy, an onshore UAE company with non UAE or GCC shareholders does not qualify as a UAE owner, that offshore companies such as Cayman or BVI vehicles cannot make new acquisitions, and that a Dubai free zone company such as a Jafza company can hold designated area property. The Land Department's sale registration page requires a company buyer to register with the Department first.

Free zones and the big industrial parks work on leases. Jafza offers land for lease, from AED 40 per square metre a year on plots of at least 5,000 square metres, per its own plots page. Dubai Investments Park is run as a ground lease estate: DIP Holding reported 99.9 per cent ground lease occupancy and about 5,700 subleases at 30 June 2026, as WAM reported on 19 October 2026. Reports of the lease term differ: Khaleej Times reported in 2003 that the park's lease was extended to 99 years, and The National reported in 2012 that foreign buyers were offered long leaseholds of a reported 85 years. Neither Dubai South nor Dubai Industrial City appears in the designated area texts we read, and neither publishes its industrial land tenure that we could find, so confirm the title with the Land Department or the zone before an offer.

What yield does logistics property in the UAE give, and what do warehouses rent for?

Two research houses publish a dated industrial yield. JLL's 2026 outlook put prime and Grade A yields at 7.25 to 8.25 per cent and Grade B at 8.25 to 9.25 per cent across Dubai and Abu Dhabi, with slight compression in the fourth quarter of 2025. ValuStrat said on 22 July 2026 that prime industrial yields in Dubai had compressed to 8 to 9 per cent, from what it called historically double digit levels, with warehouse capital values up 8.4 per cent in the second quarter and nearly 18 per cent in a year. The ranges overlap but differ, so state which series a price rests on. CBRE and Savills commented on Dubai logistics in January 2026, as reported by Khaleej Times on 25 January 2026, without publishing a yield figure.

Rents are published by submarket. Knight Frank's review of 29 July 2026 put Grade A rents at AED 90 per square foot in Al Quoz, up 6 per cent, and AED 55 in Dubai South, up 22 per cent, with Dubai Industrial City up 16 per cent. Its earlier report of 9 February 2026, covering 2025, gave Al Quoz at AED 100, Dubai Industrial City at AED 58, Dubai Investments Park at AED 60 to 65, Dubai South at AED 45 to 55, National Industries Park at AED 42 to 52 and Jafza North and South at AED 40 to 45. The two Al Quoz figures conflict because they cover different periods and specifications; neither replaces the rent in a registered lease.

Cavendish Maxwell recorded Dubai warehouse rents up 16.1 per cent year on year in the first quarter of 2026, led by Jebel Ali. Of about 5,800 leases, 83.7 per cent were renewals and new leases fell 53.4 per cent: tenants are staying put rather than expanding.

No research house we reviewed publishes an average sale price per square foot for Dubai warehouses. Prices are therefore read from the rent and a yield, as in the example below.

Why is warehouse investment in Dubai in demand?

Occupier demand is still growing. Knight Frank recorded 12.3 million square feet of new industrial and logistics requirements in Dubai in the first half of 2026, against 11.5 million a year earlier. Manufacturing accounted for 35.1 per cent and logistics for 15.5 per cent, and requirements above 100,000 square feet rose to 27 per cent of the total from 7.8 per cent in the second half of 2025. Knight Frank tied part of this to shipping disruption through the Strait of Hormuz, which pushed occupiers toward alternative ports and air freight.

JLL's 2026 outlook named expanding e commerce as a driver of demand for modern warehousing, and said the expansion of Al Maktoum International Airport is shifting the economic focal point toward Dubai South. The Government of Dubai Media Office said on 28 April 2024 that the airport's AED 128 billion passenger terminal had been approved, for an eventual 260 million passengers and 12 million tonnes of cargo a year, with the first phase expected within 10 years.

Rail is the third driver. Khaleej Times, reporting JLL on 24 February 2026, described Etihad Rail's 900 kilometre freight network linking all seven emirates. Zawya reported that DP World had begun operations at the Jebel Ali Rail Terminal on that network, with tariffs effective from 1 March 2026.

Supply is the counterweight. Knight Frank expected 6.6 million square feet of new Dubai stock in 2026, 2.2 million in 2027 and 5.9 million in 2028, and said in July 2026 that rents should find a floor within 12 months. Its head of industrial and logistics, Maxim Talmatchi, said "tenants are now very much in the driving seat." Our guide to income property in the UAE for family offices sets these figures beside offices and retail.

Should you buy a ready warehouse, build to suit or buy a plot?

A ready, let warehouse gives income from the first day and a lease a bank can lend against. The price carries the market's yield, and the risk sits in the tenant and the remaining lease term.

A build to suit project starts with an occupier's brief and a signed lease, then a building designed for it. Knight Frank said in July 2026 that longer construction timelines and strong pre leasing will limit immediately available Grade A space, which is the case for building. The buyer carries construction and approval risk until completion, and only one bank we found publishes finance for warehouses under construction.

A plot is the earliest entry. In a free zone it is usually a land lease: Jafza's standard land lease terms, dated 8 February 2015, run in three periods with rent reviews before the second and third, and require the lessor's consent to assign, charge or sublet. Our build your own warehouse service covers the plot, the design team, approvals and the letting of the finished building.

What does it cost to buy a warehouse in Dubai?

The Land Department's sale registration page, updated on 3 November 2026, lists a transfer fee of 2 per cent for the seller and 2 per cent for the buyer, a 4 per cent total that buyers often agree to carry. It adds AED 250 for the title deed, AED 225 for a unified map, AED 10 each for knowledge and innovation fees, and a service partner fee of AED 4,000 plus VAT where the price is AED 500,000 or more. Mortgage registration is 0.25 per cent of the mortgage value plus AED 250 and two fees of AED 10, per the Department's page updated on the same date.

VAT is the larger difference from a home. The UAE Government's VAT guide lists warehouses among commercial buildings and says the owner charges 5 per cent VAT on commercial rent. The Federal Tax Authority and the Land Department said on 20 March 2018 that sales of vacant commercial property are taxed at 5 per cent. The same guide says a rented property sold as a going concern to a taxable person carries no VAT on the building, subject to conditions a tax adviser must confirm. The full schedule for residential and commercial purchases is in our guide to the cost of buying property in Dubai.

Can you get a mortgage on a warehouse in Dubai?

Yes, and the residential caps do not apply. The Central Bank's Regulations Regarding Mortgage Loans, Circular 31/2013, define a mortgage loan and loan to value against residential property only, so each bank sets its own terms for warehouses. The bank sizes the loan as the lower of two numbers: its loan to value applied to its own valuation, and the loan the net rent can repay at its minimum debt service cover.

Net operating income is the rent left after vacancy and the costs the owner cannot recover from the tenant. Debt service cover is that income divided by the year's loan repayments. Lease rental discounting is a loan sized on, and repaid from, the future rent of a let property.

What banks publish, on their own pages read on 9 November 2026:

1. ADCB Commercial Property Finance lends up to AED 10 million over up to 10 years on offices, shops, industrial properties and warehouses, including warehouses under construction in Abu Dhabi and Dubai, to UAE registered businesses and to individuals, nationals and expatriates.
2. ADCB Lease Rental Discounting lends up to AED 50 million over up to 15 years and says it bases the loan on future rental income. Its listed property types are offices, shops, retail, residential, mixed use buildings and villas; warehouses are not named, so ask before relying on it.
3. CBD offers loans against future rental income on office space, warehouses and showrooms, for UAE registered businesses. It publishes no amount, term or loan to value.
4. Emirates Islamic finances completed commercial units in Dubai and Abu Dhabi, including industrial units, through Ijara, up to 70 per cent of value and up to 15 years. Its page body says up to AED 25 million and its page description says AED 15 million.

No bank we read publishes a margin over EIBOR, a minimum debt service cover, a minimum lease length or terms for non resident borrowers. The Central Bank held its Base Rate at 3.9 per cent on 28 October 2026, and three month EIBOR was fixed at 4.21 per cent on 6 November 2026, according to the Central Bank's EIBOR page. Our commercial mortgage page keeps the bank list current.

A worked example: a leased Grade A warehouse in Dubai South

This is an illustration built from published market data, not a Castilion client transaction.

It assumes a 50,000 square foot Grade A warehouse in Dubai South let to one tenant, with title registered at the Land Department so that the Dubai fees apply; any real asset's tenure must be confirmed. Figures are rounded to the nearest thousand dirhams, so totals can differ from the sum of the lines by a thousand.

1. Rent. AED 2,750,000 a year, at Knight Frank's Dubai South rent of AED 55 per square foot (29 July 2026).
2. Price. AED 35,484,000, pricing that rent at 7.75 per cent, the midpoint of JLL's 2026 prime and Grade A range of 7.25 to 8.25 per cent. That is about AED 710 per square foot.
3. Net operating income. AED 2,530,000, assuming a vacancy and collection allowance of 4 per cent (AED 110,000) and costs not recovered from the tenant of 4 per cent of rent (AED 110,000). The net yield on price is 7.1 per cent.
4. Maximum loan by loan to value. AED 24,839,000, at Emirates Islamic's published maximum of 70 per cent, assuming the bank's valuation equals the price.
5. Maximum loan by debt service cover. AED 19,726,000, assuming a bank margin of 2 per cent over three month EIBOR of 4.21 per cent (Central Bank fixing, 6 November 2026), a rate of 6.21 per cent, a 15 year term (Emirates Islamic publishes up to 15 years) and a minimum debt service cover of 1.25 times.
6. The lower of the two. AED 19,726,000, or 56 per cent of the price. Debt service cover, not loan to value, sets the loan.
7. Monthly repayment. AED 169,000, or AED 2,024,000 a year. About AED 823,000 of the first year's payments repays principal.
8. Cash needed at purchase. About AED 19,006,000: a down payment of AED 15,758,000, the 4 per cent Land Department transfer fee of AED 1,419,000, mortgage registration at 0.25 per cent plus AED 270 of AED 50,000, the trustee fee of AED 4,000 plus VAT (AED 4,200), and VAT at 5 per cent on the price of AED 1,774,000. If the sale is a going concern to a VAT registered buyer, the VAT line falls away and the cash needed is about AED 17,231,000.
9. Cash on cash return. AED 506,000 of net income after debt service, or 2.9 per cent on AED 17,231,000, and 2.7 per cent if the VAT is a cost. Bought for cash, the same warehouse yields 6.9 per cent on the price plus the transfer and trustee fees.

Borrowing lowers the early cash return because repayments include principal. A rate one point higher cuts the debt service cover to 1.17 times. Bank arrangement and valuation fees are unpublished and left out.

Run your own figures in the commercial loan calculator at /mortgages/commercial.

What should you check in a warehouse for sale in Dubai?

1. Title and tenure. Confirm whether the asset is freehold on a designated plot, a usufruct or lease right, or a free zone lease, and that your vehicle can hold it. The plot number in Regulation No. 3 of 2006 or Resolution No. 25 of 2021 is the test.
2. The land lease behind the building. In a free zone or ground lease estate, read the head lease: remaining term, rent reviews, consent to assign or charge, and what happens to the building at expiry. Jafza's standard terms require reinstatement at expiry unless the lessor requires otherwise. A bank will want the lease term to run well beyond the loan.
3. A single tenant. One occupier means the income stops if it leaves. Test the occupier's accounts and the cost of a void: in the example, a year without rent leaves about AED 2.1 million of repayments and costs to fund.
4. Lease length and breaks. The remaining term and any break options set how long the bank will lend and what the next buyer will pay. No research house we reviewed publishes typical Dubai warehouse lease terms.
5. Specification. Clear height, floor loading, docks, power and fire systems decide which tenants can use the building and whether Grade A rents apply.
6. Supply nearby. Knight Frank's pipeline of 6.6 million square feet in 2026 and 5.9 million in 2028 means rent growth from 2025 and 2026 should not be extended.

What it means for investors

Dubai warehouses are among the few UAE commercial assets with a published 2026 yield, and demand is strong. Rent growth is less certain: Knight Frank expects rents to find a floor within 12 months, and new leasing has fallen while renewals rose.

At today's rates, leverage helps less than many buyers assume. In the example, a 7.1 per cent net yield against a 6.21 per cent amortising loan leaves a cash on cash return below 3 per cent, against 6.9 per cent bought for cash. The case for debt is freed capital and equity built through repayment, not a higher first year income.

For a buyer in the Americas, the rent is paid in dirhams and the dirham is pegged at AED 3.6725 to the US dollar, so there is no currency risk against the dollar on the income. The example warehouse costs about USD 9.7 million, with about USD 4.7 million of cash needed. A non resident buyer should expect to buy through a company the Land Department accepts, and no bank we read publishes non resident commercial terms. Holding a UAE company or property usually carries reporting duties at home, so confirm the position with an adviser in your country; our US investors page sets out the starting points.

What we recommend

1. Check the plot number against Regulation No. 3 of 2006 and Resolution No. 25 of 2021, or read the free zone lease, before making an offer. Confirm the current position with the authority before relying on it.
2. Price the asset from its registered lease and one named yield series, and state which: JLL's 7.25 to 8.25 per cent and ValuStrat's 8 to 9 per cent differ.
3. Ask lenders for their minimum debt service cover and margin in writing, and size the loan on the rent, not the price.
4. Take VAT advice before signing, because 5 per cent of the price is either cash out, recoverable or outside VAT depending on the sale.
5. Model a year without rent and a rent reset at the next renewal, given the supply due in 2026 and 2028.

Castilion Estates sources let warehouses, build to suit projects and industrial plots through its commercial desk, and arranges commercial finance through its mortgage desk. Assets are shared under a signed NCNDA.