Dubai: When a 2.5 million square feet mall development opens, what it does with immediate effect is suck up all of the free space within that particular retail environment. But the Yas Mall opening in November need not have a similar impact on Abu Dhabi’s retail rental terms, according to market sources.
“Malls across the city are seeing high occupancy levels with strong visitor numbers,” said Simon Townsend at DTZ. “This is why rents for prime units continue to rise and expected to continue even with the opening of Yas Mall with its more than 400 outlets.”
As with most new mall openings, Yas Mall will have a staggered opening schedule. As things stand now, “We are targeting 75 per cent of the tenants to be open” by November, according to Talal Al Dhiyebi of Aldar Properties. This will include the 20-screen multiplex operated by VOX Cinemas and the largest hypermarket in Abu Dhabi, run by Geant. (“We have the option to build a hotel connected to the mall; this is being evaluated,” said Al Dhiyebi. “For the time being there are seven hotels within close proximity in the five-, four- and three- and serviced apartment categories.”)
According to John Hadden, senior vice-president - property, at Al Shaya, “We will have 30 of their top brands ready and open at launch, including the largest Debenhams in the region and the first Cheesecake Factory in Abu Dhabi.”
Further down the line, there will be a shake-up within Abu Dhabi’s mall environment, much along the lines witnessed in Dubai after Mall of the Emirates and The Dubai Mall opened in close succession. The Gallerias at Sowwah Square has already carved its imprint. “This destination retail cluster is one of the first of its kind in the region on a standalone basis and proving to be a sought-after development,” said Townsend. “It has become synonymous with high-end fashion brands and gourmet eateries and the prominent architecture supports the brand offers inside.”
When the Yas Mall gets into its full swing, “A two-tier structure in Abu Dhabi will be inevitable at some point — not every mall can get by having more or less the same set of retailers or F&B outlets,” said an industry analyst. “Older malls could be forced to make changes to their offer mix to stay in contention.”
