Thursday, October 18, 2007

Retail space in Dubai to exceed four million square meters by 2010

The shopping malls in Dubai, particularly the old and small ones, will soon begin to experience the pressure of decline in rents, as the city is all set to create an additional two million square meters of leasable area within a three year period, a real estate consultancy has revealed.

Dubai MallIn that case, the supply of retail space for shopping malls in Dubai will exceed four million square meters by 2010, as against the current 1.8million square meters. Colliers International, in its report, mentioned that this huge supply of retail space will bring-forth short-term oversupply in the market. The smaller and older malls will then see sharp increase in vacancies, coupled with fall in rentals.

With an aim to be a top tourist and shopping destination, Dubai is building large shopping centers. UAE ranks next to Hong Kong in recreational shopping. The report states "These mega malls will strongly root the Dubai dominance in the retail industry across the region."

No comments: