New Digital Initiative Aims to Simplify Leasing Process Amid Growing Demand for Storage Space in Dubai
Dubai Customs is set to launch an innovative digital platform, dubbed the “Airbnb of warehouses,” designed to streamline the leasing process for warehouse owners across the UAE. Showcased at Gitex Global 2024, this new Warehouse Platform will serve as a centralized solution, enabling owners to list a variety of warehouse types—refrigerated, dry, and air-conditioned—for leasing purposes.
A One-Stop Solution for Warehouse Leasing
The upcoming platform promises to simplify the registration and leasing of warehouses through an easy-to-use interface. Warehouse owners will have the flexibility to list their properties based on size, location, type, and required leasing duration, thereby saving significant time and effort in the search for available storage spaces.
This initiative comes in response to a pressing issue: the demand for warehouses in Dubai currently exceeds supply. According to a report by global real estate consultancy Knight Frank, the under-construction warehouse stock in Dubai’s industrial market stood at only 1.56 million square feet, while new requirements during the first nine months of 2023 reached 9.9 million square feet.
Responding to Market Demand
The shortage of warehouses has driven occupiers to consider leasing more secondary stock, leading to continued growth in rental prices within Dubai’s industrial and logistics sector. Notably, Jebel Ali Industrial has witnessed a staggering 38.5% increase in average Grade B rental rates over the past year, according to Knight Frank.
Warehouse owners, both bonded and non-bonded, will be able to list their properties on the platform for a fee, which will be announced soon. They will determine the rates for leasing, utilizing secured blockchain technology to ensure transparency and security in transactions.
Features and Benefits of the Platform
Once operational, the Warehouse Platform is expected to attract numerous warehouse owners eager to take advantage of this new leasing option. The initiative will allow owners with unused space to lease it out, thereby maximizing their property’s potential. To list a property, owners will need to complete certain requirements, including uploading photos and detailed information onto the platform.
The platform will also feature customs warehouses, which allow for the storage of goods under suspended customs duties. This option will expedite customs clearance and reduce costs for businesses. Goods stored in bonded warehouses will remain under customs control and can be held duty-free for up to three years. Only a deposit is required for these goods, which can be released if they are exported outside the UAE.
A Step Forward in Warehouse Management
“This platform represents a significant step forward in warehouse management and leasing within the UAE,” stated an official at Gitex Global. “Just like Airbnb revolutionized the way we book accommodations, our platform will transform how warehouse space is leased and utilized.”
With this new initiative, Dubai Customs aims to address the growing need for efficient storage solutions while enhancing the overall experience for warehouse owners and occupiers in the UAE. As the demand for warehouse space continues to rise, this innovative platform is poised to make a significant impact in the logistics landscape of the region.
