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Today, Dubai is one of the fastest-growing retail hubs around the globe. The metropolis recently won the Expo 2020 bid that has further enhanced the emirate’s being a choice destination for international retailers. Malls like Mall of the Emirates, The Dubai Mall, Dubai Festival City, Jumeirah Plaza, Deira City Centre and Ibn Battuta are among the resident and holidaymaker attractions within the city. In keeping with the Dubai realty market, the summary of Q3 2013 by Jones Lang LaSalle (JLL) shows that the rising confidence and buying power have conjointly resulted in additional demand for premium brands.
While the recognition of prime malls has accrued, smaller community and neighborhood centers have performed well because resident demand is stronger for them. The common retail rents of primary malls were Dh5,000/sq.m. and the rents in secondary malls were Dh1,725/sq.m. in Q3, says JLL. Both categories, it appears, will see growth in the coming year. Despite the fact that the rentals stay unchanged, the prime super regional malls like The Dubai Mall and Mall of the Emirates still lead the market in terms of rental values and occupancy rates as retailers find it difficult to get a place at prime malls which appear to be fully occupied.
There is a requirement for street outlets and there is an increasing variety of F&B units in Dubai, for instance, on Sheikh Mohammed Bin Rashid Boulevard in Downtown. Even small-scale centers are aiming at satisfying domestic demands of residents and attracting retailers of home furniture, lifestyle products, electronics, groceries and other services. If this trend continues, secondary malls and small-scale centers will profit some more.
In the near future, there can be a counter balance with many forthcoming retail establishments, even if presently Dubai has about 50 malls. Also, the present older malls are undergoing a revamp to suit the demands of today’s shoppers and attract more retailers.
• Prime malls still lead the market in terms of rentals, occupancy.
• Small centers are also performing well due to resident demand.
• Primary and secondary malls will see further growth next year.
Source: Arva Shikari, Special to Properties
The writer is a freelancer