Occupancy rates within prime shopping centres such as Dubai Mall, Mall of Emirates and Ibn Battuta Mall remain exceptionally high at close to 100 percent, according to a new report by CBRE.
Its Dubai Annual Market Update Report did highlight, however, that there has been some evidence of store closures in Dubai's malls as landlords look to freshen up the retail mix amid more challenging retail conditions.
CBRE said supply in Dubai’s retail sector expanded by around 7 percent during 2016, with the opening of several community centres and expansions to existing retail destinations.
The most notable addition was City Walk Phase II, which has attracted various new first to market concepts, the report noted.
Mat Green, head of research & consultancy UAE, CBRE Middle East said: “Dubai remains the biggest regional draw for international retailers, with a host of new names entering the market, including Antonio Marras, Mustang Jeans, Discovery Channel which all opened their first Dubai stores this year."
The report also showed that Dubai’s hospitality sector continued to experience downward trends on room rates, with average daily rates decreasing by 8.4 percent during November compared to the same period last year.
However, it added that occupancy rates remained resilient, resulting in a revenue per available room of AED682.2 per room per night.
Green said: “Despite the overall pressure on hotel performance, the number of visitors to the Emirate has continued to rise year-on-year during 2016. By the end of October 2016, Dubai had hosted 300,000 more people than at the same stage in 2015."
During this period, the top 10 source markets remained unchanged, although India, Saudi Arabia and the United Kingdom have continued to generate strong growth in tourist arrivals.
CBRE added that approximately 32,000 hotel rooms are expected to be delivered in Dubai between 2017 and 2019 to cater to this expected growth.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.
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