The total amount of new mall-based retail space handed over in Dubai last year declined by 72 percent compared to 2011, according to report by Jones Lang LaSalle (JLL).
The total stock of retail space in the emirate’s malls stood at approximately 2.9m sqm at the end of 2012, with no major completions at recorded in the last quarter of the year.
However, this is all set to change with a large number of new projects announced in late 2012 and a series of prominent projects due to enter the market in the coming years.
Over a dozen retail projects are set to be developed in Dubai going forward, while rents in new malls remain strong. Dubai Mall and Mall of the Emirates continue to outperform the industry in terms of record footfalls, sales volumes and occupancy, JLL said.
By comparison, rents in secondary and old malls have either remained flat or dropped marginally, widening the differential between primary and secondary centres, the report added.
Of the projects coming on-stream, JLL said several new projects are likely to perform well, such as the Jumeirah Beach Village Mall in Jumeirah Beach Residences, which it believed will “benefit from the strong population density in Dubai Marina, the inflow of tourists as well as the upcoming tram project in the area.”
Overall, the retail market in Dubai continues to perform well, supported by a strong tourism industry and the perception of Dubai as a “safe haven”, JLL concluded.