Demand for warehouses is growing exponentially in the UAE.
Business Bureau, Gulf Today
The demand for warehouses is growing exponentially in the UAE as the popularity of e-commerce and online shopping continues to increase. Despite the increase in demand, the supply for storage space in the country remains low, according to global real estate services and investment firm CBRE. This gap will be significantly filled in by Senaeyat, the UAE’s first lease-to-own industrial warehouses.
According to Saleh Abdullah Lootah, CEO of Lootah Real Estate Development, developer of Senaeyat, online shopping transactions in the region and in the UAE have been increasing by double-digits year on year, which in turn creates more interests for warehousing.
Lootah said: “All over the world, e-commerce has been driving the expansion in the warehouse leasing market. This is evident in the UAE, which enjoys the world’s highest mobile penetration, high purchasing power per capita and large consumer spending. All these factors result in a huge demand for warehouses, which are also interchangeably called fulfilment centres, today. However, the warehouse inventory in the UAE has not been catching up with this upward trend.”
“The Senaeyat project will strongly contribute to the growth of UAE’s industrial and logistics ecosystem by providing cost-effective options for businesses without compromising excellence. As an affordable industrial partner, Senaeyat empowers businesses to own warehouses over a period of only 10 years and convert rental expense to property asset,” he added.
UK-based consultancy firm Business Monitor International (BMI) puts the average annual online spend per person in the UAE at around $300, more than three times than Saudi Arabia’s $90 and France’s $94.
Visa recently reported that payment volumes in MENA region surged by 44 per cent in 2018 over the previous year. The UAE’s e-commerce market is estimated to be worth $27.1 billion by 2022, a report from Admitad MENA, a branch of the Global Affiliate Network Admitad, shows.
According to 2019 Agility Emerging Market Index, the UAE is among the top 3 emerging markets in the world for logistics after China and India and ranks first in the region.
The country’s logistics markets have also benefitted greatly from investments in physical infrastructure, earning as much as $30 billion (AED110 billion).
Lootah Real Estate Development (Lootah), one of the region’s most prominent real estate developers, has launched Senaeyat, last June to fill in the demand for logistical needs and easy warehousing solutions. As an affordable industrial partner, it allows businesses the ability to own warehouses over a period of only 10 years. Through its lease-to-own turnkey and strategically-located properties, rental expense becomes a property asset that appreciates over time.
Since inception, Lootah Real Estate Development has acted as the pioneering real estate development arm of Lootah Holding. Through a culture of excellence and an unswerving commitment to provide the very highest standards of living, LRED has not only achieved, but exceeded, the most ambitious goals. Already over 1,000 units have been delivered to satisfied occupants, with many more planned for the future.
Lootah Real Estate Development has positioned itself as the leaders in innovation in the real estate development sector, and accordingly became the lifestyle developer of choice within the region recognised for creating modern communities.
LRED properties are all conveniently located in accessible areas across the city and offer everything from studios to one & two-bedroom apartments and of course townhouses making sure that they cater to all segments whether individuals, young couple or larger families.
Sustainable construction remains a top priority for LRED, whether through using sustainable materials or the proper management of waste, sealants and coatings the company ensures all its properties are built according the highest standards of quality and sustainability.Senaeyat empowers businesses to own warehouses over a period of only 10 years and convert rental expense to property asset. UAE ranks third globally and first regionally in emerging markets for logistics
Meanwhile, National Central Cooling Company PJSC (DFM: Tabreed), the leading UAE-based regional district cooling developer, released today its consolidated financial results for the first half of 2019.
The company continues to meet the region’s growing demand for district cooling and delivers solid performance and growth.
Net profit attributable to the parent was Dhs 199.4 million, an increase of 11% on H1 2018, when the latter is adjusted for the profit from partial sale of Saudi Tabreed that occurred in the first half of last year. Share of results of associates and joint ventures decreased by 13%.