Dubai retail sector sees biggest jump since 2010

By

Benjamin Fitzgerald

Published
Jan 12, 2017

The retail sector in Dubai for 2016 recorded its biggest jump in terms of store square meterage since 2010.

The United Arab Emirates fashion capital added about 260,000 square metres of new space in 2016, the highest volume since 2010, according to JLL consultants.

The firm's 'Year In Review 2016' report said the last quarter of 2016 rang in the completion of some 20,000 square metres of retail space in the Dubai Festival City expansion. This followed the finishing of phase 2 of The Avenue in City Walk and the Ibn Battuta Mall phase 2 earlier in the year.

The extra space is expected to attract more foreign and local brands in 2017; those looking to set up shop inside the newly built malls and shopping strips in Dubai.

In comparison, JLL said that retail sales in neighbouring Abu Dhabi are likely to remain under pressure in 2017 despite no major malls being scheduled for completion in the UAE capital this year.

JLL added mall rents in Abu Dhabi are unlikely to change significantly over the next 12 months as new supply remains stagnant.

It said no major mall completions occurred in the UAE capital throughout 2016, with total stock remaining at about 2.6 million square metres.

JLL added that approximately 85,000 square metres of retail space is scheduled for completion in 2017, mostly within residential communities or towers.