Dubai: With the UAE’s residential landscape becoming more fragmented, residents can expect to see more community malls sprouting in the near future.
“The demand for community malls are in those areas where there is significant forthcoming residential supply and there is no large mall in that area — communities such as DIP, MBR City, Dubai Silicon Oasis, Akoya, Al Reem [and] Mudon,” said Mansour Ahmad, director of development solutions for Health care, Education and PPP at Colliers International, a real estate consultancy.
Community malls offer consumers products they need every day, and they are easily accessible. They house both local and international brands, convenience stores and medical clinics. Consumers are more likely to visit community malls in a specified area rather than head to big destination malls frequently.
The development of community malls in the UAE has been a growing trend over the past five to seven years, says David Macadam, chief executive of the Middle East Council of Shopping Centres.
According to Macadam, demand for community malls does not just extend to Dubai, where most of the community mall developments are happening, but also to other emirates, including Abu Dhabi, Sharjah and Fujairah.
Nakheel and Meraas Holding are leading the way in creating these malls.
Nakheel recently opened Jumeirah Park Pavilion, one of five community centres planned by the developer across Dubai. Covering an area of 10,600 square metres, the dining and retail facility caters to residents in Jumeirah Park, Jumeirah Islands and Jumeirah Village.
Nakheel is also building similar retail facilities at Al Furjan, Jumeirah Islands, International City, Badrah and Discovery Gardens.
Other locations
Meanwhile, Meraas opened its Citywalk shopping centre off Al Wasl Road last year.
More recently, the Galleria Mall opened in Jumeirah Beach.
Mall operator Majid Al Futtaim (MAF) has also jumped on the bandwagon. It launched a community mall under its “My City Centre” brand in Sharjah’s Nasseriya area earlier this year, and plans to roll out more of these malls across the UAE.
The following month, the company said it plans to open City Centre Me’aisem in Dubai’s International Media Production Zone, which will include a 91,903 square feet Carrefour Hypermarket.
Sharjah Holding, a joint venture between MAF and the government of Sharjah, plans to open two more Matajer community malls by early 2015, bringing the total to six, Gulf News previously reported.
Also, in June, Damac Properties launched Akoya Drive, a shopping strip in Dubai, which will house food and beverage outlets mostly.
Dubai’s cumulative community mall supply amounts to approximately 308,000 square metres, according to Ahmad.
While Ahmad did not say what the occupancy rates are for community malls in Dubai, he did say that they enjoy high occupancy levels.
“Overall demand for retail space in Dubai currently exceeds supply,” he said.
Currently major malls in the emirate are almost full and are undergoing expansion, reflecting the demand for more retail space, according to Mat Green, head of research for the UAE at CBRE, an international property consultancy.
Retailers that want to expand in Dubai are currently looking at community malls and new major malls that are being built, he said.
