Abu Dhabi has more 800,000 sqm of shopping malls under development, placing the UAE capital among the world’s top ten cities in terms of retail space pipeline.
According to a report by real estate services firm CBRE, Abu Dhabi has nine new retail projects set to come online in the coming four years, including the 60,000 sqm The Mall at world Trade Centre, the 50,000 sqft The Galleria and the 235,000 sqm Yas Mall.
“After a period of significant undersupply, where many of the major malls have been running at close to 100% occupancy, we are now entering into a new growth period for retail stock,” commented Mat Green, head of UAE research at CBRE Middle East.
“[Over the next four years] we will see a dramatic transformation of the retail landscape, both in terms of supply and quality. We are also expecting an influx of new retail brands, some of which will be opening their first stores in the region. Overall, we see this is an exciting time for retail in the capital,” he added.
On a global basis, CBRE said that 32m sqm of shopping centre space is currently under construction, up 15 percent from the same period a year ago.
The report said that much of this new development is centred on China, which has16.8m sqm of retail space currently being built, including major projects in Chengdu, Tianjin and Shenyang.
Other major markets for new mall construction include Istanbul, Moscow, St Petersburg, New Delhi, Kiev, Hanoi and Kuala Lumpur, the report said.
The top cities in terms of retail space development are:
1. Chengdu (China)
2. Tianjin (China)
3. Istanbul (Turkey)
4. Shenyang (China)
5. Chongqing (China)
6. Wuhan (China)
7. Guangzhou (China)
8. Hangzhou (China)
9. Kuala Lumpur (Malaysia)
10. Abu Dhabi (UAE)