Uzbekistan and Kazakhstan Surpass Dubai and Manchester in Warehouse Rental Prices
Uzbekistan
Uzbekistan and Kazakhstan have overtaken cities like Dubai and Manchester in terms of warehouse rental prices, driven by a severe shortage of storage space in Central Asia. According to Stanislav Akhmedzyanov, managing partner at IBC Global, the region has set new records, attracting significant attention from investors.
In Tashkent and Almaty, the average warehouse rental rate exceeds $150 per square meter annually, 15% higher than in Dubai or Manchester. In contrast, warehouse space in the Moscow region is 60% cheaper, highlighting the growing costs in Central Asia’s logistics sector.
Kyrgyzstan is also seeing significant increases, with warehouse rental rates reaching $114 per square meter annually, placing it on par with cities like Munich and Bristol. This figure surpasses major European port hubs such as Rotterdam and Antwerp.
While high rental prices may deter some tenants, they create exceptional opportunities for investors. In Central Asia, the payback period for warehouse investments is only 5-6 years, twice as fast as in Europe. Investors can expect an average annual return of 17-20%, making the region highly attractive.
Additionally, a trend toward long-term contracts of up to 10 years has emerged. These contracts offer investors the chance to recoup their investments well before the contracts expire, a rarity in other market segments, making Central Asia’s warehouses even more appealing.
The development of the warehouse sector in Uzbekistan and Kazakhstan is positioning Central Asia as a key player in the global logistics market, offering new opportunities for both regional and international trade.
Kyrgyzstan is also seeing significant increases, with warehouse rental rates reaching $114 per square meter annually, placing it on par with cities like Munich and Bristol. This figure surpasses major European port hubs such as Rotterdam and Antwerp.
While high rental prices may deter some tenants, they create exceptional opportunities for investors. In Central Asia, the payback period for warehouse investments is only 5-6 years, twice as fast as in Europe. Investors can expect an average annual return of 17-20%, making the region highly attractive.
Additionally, a trend toward long-term contracts of up to 10 years has emerged. These contracts offer investors the chance to recoup their investments well before the contracts expire, a rarity in other market segments, making Central Asia’s warehouses even more appealing.
The development of the warehouse sector in Uzbekistan and Kazakhstan is positioning Central Asia as a key player in the global logistics market, offering new opportunities for both regional and international trade.
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