Can Dubai support additional malls?

Are additional malls required in Dubai? With the Dubai Mall shortly opening its doors and with more and more malls under construction, the question of whether there is demand for all of these in Dubai is often raised. The inability to find a parking space at the Mall of the Emirates on a Friday night might suggest otherwise.

It appears that Dubai has the capability of supporting additional malls when we observe the footfall on any given weekend. In terms of market saturation, there shouldn't be a problem for a while yet as both the population and density of Dubai are growing significantly. This should create a requirement for retail outlets that serve the new residential areas and additional people, including the predicted increase in tourists.

Another factor when developers assess the feasibility of a mall is based on the number of people within a commutable area of the site to gauge the potential catchment. With Dubai, the number of people in each catchment area is increasing all the time and you could argue that, given the traffic issues, proximity has an even greater significance here. For instance, if you live close to the Mall of Emirates, you are more likely to shop there than travel to a mall further away.

It comes down to convenience, which is why malls and shopping outlets are often located close to key residential areas. Community retail developments such as Uptown Mirdiff make it easier for people to shop in their own back garden, saving themselves valuable time.

A further reason for the demand for shopping malls is the leisure component it attracts. The heat in Dubai limits outdoor activities for a large part of the year, giving malls a greater appeal and as such they offer a full spectrum of leisure activities; from skiing, to magic planets, to cinemas and restaurants, with an aquarium soon to join the list. Such unique selling points along with the wide range of activities help to attract high numbers of visitors and keep the car parks full, thus supporting additional malls.

In terms of variety, there have been concerns that the retail offering in the new malls will replicate the existing ones. Again, this shouldn't be a problem. People will choose the mall with the most convenient location and expect to see the familiar brands, making it essential for retailers to have a presence in each of the big malls.

Specific needs

Moving forward, one might support a need for more specialist malls, partly to avoid saturation, but also to satisfy the specific needs of shoppers. There is already evidence of this with the Dubai Outlet Mall and Times Square Mall, the latter of which offers a wide range of electronics, similar to Circuit City in the US. This concept takes convenience to a whole new level, providing a one stop shop for specific retail requirements. In addition, these boutique malls will be vital in helping smaller, independent retailers find their niche. Many of the specialist centres are inclined to develop a theme, in order to differentiate themselves from their competitors, thereby increasing the footfall.

Dubai is a shopper's paradise, and residents and tourists are in the envied position of being spoilt for choice when it comes to retail therapy, with options growing on a daily basis. With continued population growth it seems Dubai is sure to see more developments on the horizon even with the impending introduction of The Dubai Mall.

The writer is managing director of Better Homes.