Vacancy levels in shopping malls in the Dubai increased in the third quarter of 2017, putting more downward pressure on rents, according to a new report.
JLL’s Q3 2017 Dubai Real Estate Market Overview report said that larger malls in the emirate have recorded declines of between 3-5 percent in headline rents on a quarterly basis.
JLL said property owners have been more willing to negotiate rents with existing tenants, therefore leading to a further decline in average rental levels during Q3.
It added that smaller neighbourhood and community malls have generally recorded greater declines than in the larger centres.
JLL noted that rents are expected to remain under pressure over the next 12 months given the large volume of potential new supply due to enter the market.
The third quarter of 2017 saw the completion of the Dubai Festival City expansion, adding approximately 20,000 sq m, as well as the completion of a neighbourhood and a community retail outlet in AlHebiah First and Wadi Al Safa 2, adding 18,600 sq m collectively.
The remainder of 2017 is anticipating the completion of an additional 101,000 sq m, with notable projects scheduled for handover in Q4 including Phase 2 of the Dubai Mall and the Souq in Culture Village.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.