Lootah Real Estate Development has launched the UAE's first lease-to-own industrial warehouses
Demand for warehouses in the UAE is set to grow, bolstered by the increasing popularity of e-commerce and online shopping, according to Saleh Abdullah Lootah, CEO of Lootah Real Estate Development.
Real estate services and investment firm CBRE, has revealed the supply of storage space in the UAE remains relatively low.
“All over the world, e-commerce has been driving the expansion in the warehouse leasing market,” Lootah was quoted as saying by Arab News. “This is evident in the UAE, which enjoys the world’s highest mobile penetration, high purchasing power per capita and large consumer spending.”
Lootah added that “these factors result in a huge demand for warehouses…however, the warehouse inventory in the UAE has not been catching up with this upward trend.”
To meet with the demand, Lootah Real Estate Development last June launched Senaeyat, which it is billing as the UAE’s first lease-to-own industrial warehouses.
“The Senaeyat project will strongly contribute to the growth of the UAE’s industrial and logistics ecosystem by providing cost-effective options for business without compromising excellence,” Lootah added. “Senaeyat empowers businesses to own warehouses over a period of only 10 years and convert rental expense to property asset.”
Statistics from UK-based consultancy firm Business Monitor International (BMI) estimates the average annual online spending per person in the UAE is $300, compared to $90 in Saudi Arabia and $94 in France.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.