Dubai is expected to see 1.5 million sq m of new retail space open over the next three years as retailer demand for physical stores remains steadfast, according to a new report.
New analysis from real estate advisor CBRE said Gulf retail markets will see new brands with landlords focusing in on food and beverage, family entertainment and experiential retail.
"Malls such as Meydan One are seeking to maximize these types of concepts and offer a new shopping experience to consumers never seen before in the Middle East,” said Anthony Spary, associate director of Investor Leasing, CBRE Middle East.
He added: “These trends are prominent in the Middle East region with a continued focus on physical retail. We expect to see retailers adapting to more of bricks and clicks model in the coming years, with the upcoming supply offering retailers the ability to optimize their portfolio, gain efficiencies and connect more with the consumer through an omnichannel platform.”
Globally, CBRE said retailer demand for physical store space will remain steadfast throughout a number of key retail markets over the next five years, with the health and beauty sector leading the way.
The data also predicts the home and garden sector will witness significant levels of growth in space requirements – with China seeing an extra 20.4 percent of space being required.
Earlier this year, Dubai was ranked the most important international shopping destination globally, according a study by CBRE.
Knocking London off the top spot, Dubai took the number one position in the 2018 edition of How Global is the Business of Retail? report, with 62 percent of global retailers present in the emirate.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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