Dubai's retail real estate market is showing steady growth, reflecting the city's key role as a global business and tourism center. Today, the United Arab Emirates has significant potential for growth and development of both the business sphere and the real estate market, which is confirmed by the increasing number of not only local but also international companies, as well as population growth.
The shortage of quality retail space forces the owners to carry out the reconception of the existing projects. Active construction of new shopping centers resumed after the end of the pandemic. In the next three years it is planned to commission about 567 thousand square meters of new leasable space in shopping centers in Dubai.
The UAE market continues to attract interest of Russian retailers. Thus, in Q3 2024 at least three new openings of Russian brands in Dubai became known.
The total of 1,032 new lease agreements were signed for 9 months of 2024 - 30% less than for the similar period last year.
The growth of rental rates in shopping malls for newly signed lease agreements averaged to more than 25% on the market. In Q3 2024 the weighted average rate under new lease agreements in Dubai amounted to 380 AED/sq. ft/year (1,114 USD/sq. m/year).