Dubai to launch 'Airbnb of warehouses' where owners can list properties for lease
Dubai Customs has announced the launch of a new online leasing platform to help warehouse owners in the UAE list their warehouses for renting purposes. As called the ‘Airbnb for warehouses’, the Warehouse Platform – which was featured in Gitex Global 2024 – shall soon be introduced by Dubai Customs and will enable warehouse owners to rent their warehouses to any person in any part of the country.
This platform will help with the registration and leasing of different categories of warehouses so that it does not have to be done through disparate systems. For leasing purposes, warehouse owners can freely advertise for refrigerating, dry, or air-conditioning warehouse on this platform.
To save users’ time and energy in finding available storage facilities for rent, the new platform will offer many choices of warehouse including, but not limited to, their area, location, type, and length of use.
Shortage of warehouses?
This comes as there is a shortage of warehouses in the market in Dubai.
As per the release of the analyst working with the global real estate consultancy Knight Frank, In December 2023, In Dubai, the overall supply of warehouse space under construction within the quote industrial market was only 1.56 million square feet. In the first 9 months of 2023, Dubai witnessed 9.9 million square feet in net new space requirements.
Because of the overwhelming demand, the occupiers are expected to lease more of the secondary stock. The rental value in the industrial and logistics sector located in Dubai has been reported to have continued upwards across the first half of 2024. The largest rental increases were observed in Jebel Ali Industrial where the average Grade B rents rose by 38.5 per cent in the past 12 months period, Knight Frank said.
Landlords of non–bonded and bonded warehouses inside & outside free zones are steering to leasing the warehoused properties on the website at a subsequent fee that is to be announced. Warehouse leasing rates will be determined by the owners on a secure blockchain platform.
“Once it goes live a lot of warehouse owners will be joining the platform. It is similar to how one is able to book hotels on airbnb with ease. For owners listing is not a requirement,” mentioned an official at gitex global.
“If you have a space inside your warehouse that is not being used, such space can be leased using this platform. Some criteria must be met so that a listing by a person is approved by Dubai customs. As for pictures and other content there will be the landlord posting these onto the site,” the official said.
Bonded warehouses
The moving collection reportedly includes a new service for leasing a tailormade customs warehouse allowing for the storage of goods under suspended customs duties which regards to accelerating customs clearance processes while minimizing costs.
The representative said bonded warehouses would be established with authority to be inspected by customs at any time.
““They’ll be under the control of customs.....It’s a small storage area for goods that are not under duty paying, Facility allows goods to be stored for three years without any duty payments. Soldier pays only a deposit for the goods. If you are in that place, it means you pay the duty. If you are re exporting the goods back, the deposit will be returned to you,” he said.
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