Dubai: Retaiing in Dubai has always been an expensive proposition — it is getting more so now.
“Top” rentals for a standard-sized shop at one of Dubai’s prime ‘super-regional centres’ (industry parlance for the likes of The Dubai Mall and Mall of the Emirates) have firmed up in the first three months of the year to around Dh8,000 a square metre, according to the consultancy JLL.
“Average” rentals at these malls would now be around Dh6,900 a square metre. A year ago this was in the region of Dh5,000 a square metre. Dubai’s retail sales (on current prices) were valued at Dh8.7 billion last year and projected to increase at a compounded annual growth rate (CAGR) of 6 per cent between 2014-20 to Dh14 billion in 2020. That is as good a reason as any for retailers to get a spot somewhere in the city.
Outside of the malls, retailers are starting to like what they are seeing at outdoor shopping spaces. There are quite a few to choose from — The Beach on JBR is there, while Al Wasl Properties is expected to complete phase 2 of The City Walk in 2016. Nakheel has also announced plans to develop The Pointe on The Palm Jumeirah.
“It is estimated that around 496,000 square metre of new retail space will enter the Dubai market over the next three years”, JLL reports.
“This includes Phase II of Dragon Mart, the Agora Mall in Jumeirah, the expansion of Ibn Battuta Mall (all scheduled for 2015); in addition to the Phase II of The Avenue and the expansion of the Dubai Mall (due for completion in 2016).”
