- Broker Directory
- My Tools
- News & Advice
- Market Trends
- Other GN Sites
Abu Dhabi tops Middle East in shopping centre development
Ranks among the world’s top 20 most active cities in building new retail space 168,000. The total retail space in sqmdelivered in Abu Dhabi last year.
Abu Dhabi has 778,000 sq m of new retail space in its development pipeline, placing the UAE capital among the leading cities globally for shopping centre development, according to property advisor CBRE.
The new shopping centres include the huge Yas Mall on Yas Island, which is due for completion in the fourth quarter, Capital Mall in Mussafah and Sowwah Central on Al Maryah Island.
Abu Dubai delivered 168,000 sq m of retail space last year, which ranks 18th globally for shopping centre space completed and number one in the region. In comparison, Dubai delivered 35,000 sq m of retail space last year.
“Abu Dhabi is witnessing significant retail space development, as it looks to establish itself as a prime destination for entertainment and shopping,” said Nick Maclean, Managing Director of CBRE Middle East.
“New retail destinations such as the recently opened The Galleria are helping to increase the emirate’s exposure, bringing new retailers and concepts to the region.”
The increasing demand for retail space is supported by strong economic growth, along with an influx of a large number of tourists and expatriates. Consequently, occupancy rates remain high, particularly in major malls where less than 5 per cent of space is empty. The larger centres have also benefited from a buoyant hospitality market, which has boosted visitor numbers.
On the back of strong occupier demand, many major mall operators in Dubai are pressing ahead with extensions to their existing centres, including Mall of Emirates and The Dubai Mall.
These extensions account for almost a quarter of the total retail space currently under construction in Dubai.
Across the world’s major cities, a total of 39 million sq m of shopping centre space is currently under construction, representing an increase of 3 million sq m from last year, with majority of the development activity focused on China.
More than half of the shopping centre space under construction in the 180 countries surveyed is taking place within China’s borders. Shanghai takes first position with 3.3 million sq m, more than the combined total of all 86 European cities, excluding those in Russia and Turkey. Just behind Shanghai is Chengdu with 3.2 million sq m, followed by Shenzhen and Tianjin with 2.7 million sq m and 2.5 million sq m respectively.
Completing the top ten are Istanbul, Wuhan, Moscow, Beijing, Nanjing and Guangzhou.
In Southeast Asia, nearly 40 per cent of the 3.3 million sq m under construction is located in Kuala Lumpur, making it the 12th most active market globally.
Buoyant occupier demand is pushing a strong development pipeline in New Delhi with 500,000 sq m of new retail space currently under construction.