The demand for warehouses is growing exponentially in the UAE as the popularity of e-commerce and online shopping continues to increase, indicates Lootah Real Estate Development. 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.
According to Saleh Abdullah Lootah, CEO of Lootah Real Estate Development – and developer of Senaeyat, UAE’s first lease-to-own industrial warehouses – online shopping transactions in the region and in the UAE have been increasing by double-digit year-on-year.
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% in 2018 over the previous year.
These numbers also, in turn, indicate rising interests for warehousing. In this context, 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.
Lootah launched Senaeyat in June 2018 to fill in the demand for logistical needs and easy warehousing solutions in the UAE.
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