Annual rental rate in Dubai retail sector hit USD 1800 per sq. m.

posted @ 12:00am, Wednesday 11 November 2009.

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 – be it in Dubai or other , we offer RETAILFocus', which provides relevant information that can help save the resources, time and money of users seeking valuable information."
Dubai's global repute as a premier leisure and shopping hub has created a significant impact on the local retail scene, with further statistics provided by Colliers International, REIDIN.com's information partner revealing that premium retail destinations such as Mall of the Emirates, Dubai Festival City and Burjuman have emerged as the most expensive in the UAE. Among the establishments that offer the most extensive gross leasable area (GLA) across the emirates are Dubai Mall (344,000 sq. m.), The Walk (1500 sq. m), Oasis Mall (60,000 sq. m.), Mirdiff City Centre (183,000 sq. m.), and Dubai Marina Mall (77,000 sq. m).

"In a market as active as Dubai, good information is key to ensuring that investments result in returns and targets are met. We are continuously working to further enhance the functions of RETAILFocus' and well as expand its coverage to more global markets. We are also keenly partnering with government agencies and other organisations to extend the scope of our information gathering," concluded Kayhan.

REIDIN.com has pioneered the concept of providing extensive and interlinked databases of shopping centre and retailer profiles, Gross Leasable Area (GLA), footfall statistics, price data, news, research, upcoming retail projects, owners, developers, and property manager profiles, all of which are supported by analysis and advanced comparison tools, and a powerful search engine. Backed by a repository of hard-to-get data and information the retail property market in developing economies, coupled with the tools to analyse and make calculated decisions, RETAILFocus', delivers an up-to-date market insights, along with retail real estate news and research reports.

About REIDIN.com
REIDIN.com is the world's first online information company providing a range of intelligence products dedicated to meeting the unique requirements of real estate market professionals interested in emerging markets. REIDIN.com services are used by investors, fund managers, developers, consultants, researchers, valuation experts, construction and project managers, occupiers, as well as many others who are interested in monitoring and understanding the market trends and business challenges relevant to them in real estate markets.

REIDIN.com provides hard to find proprietary business news, analysis, research, data and intelligence with online tools and services that enable real estate professionals to enhance their understanding of emerging markets such as United Arab Emirates, China, India, Vietnam, Singapore, Malaysia, Russia, Saudi Arabia, Kuwait, Turkey, Poland, Bulgaria, Romania, Hungary, Brazil, Argentina and more.

Moreover, to cater to the specific demands of Dubai's booming property market, REIDIN.com has teamed up with the Dubai Land Department to establish DUBAIFocus, the first exclusive online information product tracking real estate deals and transactions in Dubai. DUBAIFocus – which has data from the year 1973 - provides daily information on all types of land, villa and flat deals (sales, mortgage, lease, grant, inheritance, etc.) in Dubai.

For more information, please contact:
CommuniGate Middle East
PO Box 66861, Dubai, UAE
Tel: +971 4 3988134
Fax: +971 4 3988137
Email: info@communigateme.com
Website: www.communigateme.com