After remaining broadly flat over the past couple of years, the prime industrial rents in Dubai appear to be on a firm path to recovery, said a report.

In the final six months of 2013, the average rental values for class 1 property rose by 12 per cent half-on-half and were up 18 per cent compared to the same period the year before, according to property consultancy Knight Frank.

The upward movement in industrial rents has been supported by strengthening economic fundamentals in the emirate, it stated.

Edward Batten, the associate director (Industrial & Logistics) said: "In 2013, the members of the Dubai Chamber of Commerce and Industry had recorded an 8 per cent rise in exports and re-exports. What’s more, over the same period, cargo volumes passing through Dubai International Airport rose by 6.8 per cent to 2.4 million tonnes."

With double digit growth, Dubai Investments Park (DIP) and Jafza were the best performing industrial zones in the second half of 2013, said the report by Knight Frank, which has a strong presence in the Middle East with offices in Abu Dhabi, Dubai, Bahrain, Qatar and audi Arabia.

"Indeed, on an annual basis, rents in the two districts climbed by 30 per cent and 19 per cent, respectively. Elsewhere, in Al Quoz, rental values rose by 9 per cent year-on-year to Dh38 ($10.3 ) per sq ft, remarked Batten.

"Not surprisingly, demand for industrial space was strongest from the light industrial/manufacturing and third party logistics firms," he said.

In the final six months of last year, the two sectors accounted for 33 per cent and 25 per cent of all enquiries, said Knight Frank in its report.

At 17 per cent, food and beverage companies were also an important source of demand, it added.

Headquartered in London, Knight Frank advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants.-TradeArabia News Service