10 November 2009
Annual rental rate in Dubai retail sector hit USD 1800 per sq. m.
REIDIN.com information partner Global Investment House forecasts oversupply in retail space to push rental rates downwards
Dubai’s retail sector is witnessing a rise on annual rental rates, which has hit USD 1800 per sq. m., according to a report by Global Investment House, a Kuwait based investment company and information partner of REIDIN.com, the world’s first and leading global online information services provider. The report further reveals that there is an impending oversupply in retail spaces in the emirate, which is set to push rental rates downwards in the coming years. With aims of providing up-to-date information on the dynamic retail property sector, REIDIN.com offers ‘RETAILFocus’, a product that leverages extensive and interlinked database on retail real estate markets for the benefit of buyers, investors and stakeholders.
However, reports published by Cushman and Wakefield, another information partner of REIDIN.com, have revealed that there is tightness in the availability of units in prime locations, with retailers’ increasing focus on AAA locations and their efforts to scale down presence in less profitable areas expected to result in downward adjustment in rents in secondary streets. Occupier demand is also expected to continue being selective and thus preventing global rental growth from spiking unless a period of recovery ensues.
“The upward movement in the rental rates within Dubai’s retail property sector is reflective of the correction phase that is sweeping the UAE’s real estate sector, which validates the high value of maintaining presence within one of the world’s most sought-after retail destinations,” said Ahmet Kayhan, CEO, REIDIN.com. “Amidst the wide expanse of investment opportunity within the retail real estate markets