Dubai has the highest and the famous malls in the world and as the emirate is all set up to host Expo 2020 for spending the growth of the further.
From Dubai Mall (the largest in the world) to Mall of the Emirates, one with an indoor ski slope, retail providing is the best in the world. A global real estate advisor, Savills has said: “Dubai has the best retail offer in the world, exceeding both London and New York.”
In its Global Retail Destination Index 2016, it says that based on the number of retailers present, their variety, brand positioning and the top luxury and clothes brands, the emirate beats all other important global retail destinations. The city tops for the biggest retail spend, with 13,800 $ being spent in its shops for every one of its citizens during 2015.
Picture Courtesy: www.edubaishoppingfestival.com
According to the report states; this is set to expand over the next 4 years, with retail sales growth predicted to grow an average of 3.2 % every year to 2020. The biggest growth projection across all the cities surveyed”.
This gain is set to be driven by an estimate 3.5 % increase in Dubai’s resident population and a 9.7 % growth in international overnight visitors every year, with the latter predicted to double the amount they spend in Dubai’s shops by 11.5 %”.
In a review of over 1,500 retailers, Dubai was also rated as having the best variety of stores and retail mix, with 88 % of store managers saying that they were happy or very happy with the choice available, and came 2nd, after London’s West End, as the best place to shop with 93 % of respondents stating that they would suggest it.
Picture Courtesy: www.saltnpeppa.me
The city continues to attract international visitors, for whom who love to shop. This city is becoming the number one for shopping lover, but retailers did score it under than most of its opponents on its cultural appeal and comfort of access, these may be areas for the Dubai authorities to think if they want to increase its attraction to international shoppers.
1st quarter 2016 report that normal retail rents continued flat during the first 3 months of 2016 as occupancy rates persisted constantly at 92 %, showing the power of the retail segment. Developer sentiment remains positive because the completions of the Dubai Mall – Phase 2 and the Outlet Village.
With more projects opening the market, retailers will continue to have numerous choices. Some of the new projects may try to impose higher rents, larger retailers could crowd out less and mid-sized tenants who will be required to view more secondary places with lower levels of turnover and footfall.