Dubai's retail sector continues to thrive | The First Group

Dubai's retail sector continues to thrive

Dubai's retail sector continues to thrive

Retail and food and beverage (F&B) developers are snapping up prime Dubai property spots as the city's retail sector booms.

The hub of this new wave of development is the Jumeirah and Al Wasl roads, where a heady mix of bespoke retail, local fashion and essential services outlets are burgeoning.

Property experts say retail and F&B promoters are heading to the area in droves, attracted by its mid-to high-net-worth demographic, driving demand and pushing up rental prices in the process.

The development marks a shift from the retail strategies of the past, where developers typically sought-out sites in shopping malls, rather than on Dubai's streets.

It follows the launch of an ambitious scheme from the Dubai government to turn the UAE city into a global fashion capital.

Speaking to Gulf News, James McNally, commercial surveyor at property firm Cluttons, explained that rental rates in Jumeirah and Al Wasl have been rising due to a lack of available space and an increase in demand in what has become an 'extremely competitive' market.

'The location continues to attract retailers keen to be located close to a mid-to high-net-worth demographic,' he said.

'Together with its locational qualities, we foresee that it will be an attractive location for a wide range of retailers.'

It is likely that developers are also attracted to street sites because current rates at these locations are more attractive than in destination malls.

A street retail location can command rentals of around AED 2,500 (£440) a square metre - expensive, but some way below the AED 4,500 per square metre a retailer would pay for premium space at a mall.

Matthew Green from the consultancy CB Richard Ellis said street sites are allowing unestablished and start-up providers to get a foothold in Dubai's retail mix.

'From their perspective, a street-side location nearest to their target audience is a coveted spot to be in,' he told Gulf News.

Earlier this month, the General Secretariat of the Executive Council of Dubai signed a deal with Dubai Technology and Media Free Zone Authority to create and develop Dubai Fashion 2020, a strategic plan will support Dubai's fashion industry as part of an effort to turn the city into a 'genuine hub' for the fashion and design industries.

We noticed you haven't
downloaded our exclusive
Hotel Investment Report.

Learn more about lucrative
opportunities in Dubai.

Access The Report

Fill in the form to access your exclusive report!

Invalid Number

Thank you for downloading the hotel investment report