Dubai Retail Sector Q4 2015 — MPM

Dubai Retail Market
  • Despite a slowdown in sales, the retail sector in the Emirate continues to attract new brands. Several regional and international brands setup base for the first time in Dubai during 2015 resulting in consistently high occupancy rates. Prime retail assets are currently achieving over 95% occupancy rates associated with a long waiting list of retailers looking to expand or set base in Dubai.
  • Rents across prime retail centres remained stable during the year whilst a number of secondary retail centers that are struggling to maintain a healthy retail mix witnessed a drop in rents in the range of 7-10% year-on-year.
  • Dubai’s organised retail stock grew by 8% year-on-year reaching 34.8 million sq.ft. GLA (gross leasable area). The only new retail addition during Q4 2015 was Dragon Mart 2 offering a total GLA of 1.7 million sq.ft. located in the International City master development. The development which lacked a major hypermarket also saw the opening of Geant Hypermarket, an anchor tenant of Dragon Mart 2.
  • Over the past two years, the retail market has witnessed a rise in community retail concepts due to a rise in population base across new residential developments. During 2015, several new community retail centres opened in Majan, the Villa, Al Waha community and Arabian Ranches developments adding circa 280,000 sq.ft. of retail space.
  • Retail sales for general goods and services targeted towards local population are likely to outperform as compared to luxury goods. Events such as Dubai Shopping Festival, Dubai Summer Surprises and Eid in Dubai will continue to promote sale activity.
PRIME SHOPPING MALL AVERAGE RENTS Q4 2015
PRIME SHOPPING MALL AVERAGE RENTS Q4 2015
DUBAI RETAIL MALLS GLA BY AREA - Q4 2015
DUBAI RETAIL MALLS GLA BY AREA – Q4 2015
RETAIL SUPPLY PRE-2010
RETAIL SUPPLY PRE-2010
DUBAI RETAIL MALLS CLASSIFICATION - Q4 2015
DUBAI RETAIL MALLS CLASSIFICATION – Q4 2015
NEW SUPPLY DELIVERED 2010-Q4 2015
NEW SUPPLY DELIVERED 2010-Q4 2015
DUBAI RETAIL MALL STOCK - Q4 2015
DUBAI RETAIL MALL STOCK – Q4 2015

 

 

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