Retail Market Overview
In the last quarter of 2014, vacancy rate was set at 8% as opposed to 12% in the fourth quarter of 2013. In addition, retail supply remained unchanged at 2.9 million sqm in the past couple of years. Primary and secondary average retail rents have consequently increased 28% and 29% respectively year-onyear between 2013 and 2014. However, Dubai’s retail market is expected to witness the delivery of approximately 267,000 sqm of retail space in 2015, notably Phase II of Dragon Mart, and three neighbourhood centres including The Box Park by Meraas.
Rental growth is expected to remain stable over the course of 2015 as retail supply expands significantly. However, as demand from retailers continues to be strong and new brands are set to enter the market and plan for expansions, vacancy rates are forecasted to remain stable in 2015.