Dubai to launch 'Airbnb of warehouses' where owners can list properties for lease

This platform comes as demand for storage space spikes in the emirate

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Image used for illustrative purpose. Photo: File
by

Waheed Abbas

Published: Tue 22 Oct 2024, 6:00 AM

Last updated: Tue 22 Oct 2024, 10:26 PM

Dubai Customs will roll out a new digital platform allowing warehouse owners in the UAE to list their properties for leasing.

Termed 'Airbnb of warehouses', the Warehouse Platform – which was showcased at Gitex Global 2024 – will be rolled out soon by Dubai Customs and will be a one-stop solution for warehouse owners to lease their properties across the country.

The platform will simplify the process of registering and leasing various types of warehouses through a centralised system. Owners of warehouses — from dry to air-conditioned facilities — can list their properties on this platform.

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The new tech solution will provide users with multiple warehouse options, which they can sort based on size, location, type, and lease duration — thus saving them time and effort in searching for available storage spaces.

Shortage of warehouses?

This comes as demand for warehouses outstrips supply in Dubai.

According to global real estate consultancy Knight Frank’s analyst released in December 2023, the supply of under-construction warehouse stock in Dubai’s industrial market stood at just 1.56 million square feet. Dubai recorded 9.9 million square feet of new requirements during the first nine months of 2023.

Due to exceptionally high demand, occupiers are faced with the prospect of leasing more secondary stock. Rents in Dubai’s industrial and logistics sector have shown continued strong growth in the first half of 2024. The highest rental growth has been registered in Jebel Ali Industrial with average Grade B rates surging 38.5 per cent over the past 12 months, Knight Frank said.

Owners of both bonded and non-bonded warehouses, within and outside free zones, can list their properties for leasing on the platform against a fee which will be announced in due course. The rates for leasing warehouses will be decided by the owners, using secured blockchain technology.

“Once it goes live, a lot of warehouse owners will join the platform. It's just like ‘Airbnb of warehouses’, similar to how you can find hotels on Airbnb. It is optional for owners to list,” said an official at Gitex Global.

“If you have space inside your warehouse which is not being used, you can lease it through this platform. Certain requirements need to be completed in order for the listing to be approved by Dubai Customs. Photos and other content will be uploaded by the landlord onto the platform,” the official said.

Bonded warehouses

The new platform also offers the option of leasing a customs warehouse dedicated to storing goods under suspended customs duties, which helps expedite customs clearance procedures and reduce costs.

The official explained that there will be bonded warehouses which will be subject to customs inspection at any time.

“They’ll be under the control of customs. If you store the goods in a bonded warehouse, it's like a mini-free zone. Goods will be under suspended duty for up to three years. Only a deposit will be collected for the goods in the warehouse. Within three years, if you decide to sell goods into the local market, this means you pay the duty. But if you decide to re-export the goods outside the UAE, this means the deposit will be released,” he said.

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Waheed Abbas

Published: Tue 22 Oct 2024, 6:00 AM

Last updated: Tue 22 Oct 2024, 10:26 PM

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