Retail Rents in Abu Dhabi Remain Stable

0
1129

Continuous growth in retail spending, derived from both the resident population and increased tourism levels, is supporting demand for additional retail space in Abu Dhabi.

Average rents in retail centres on Abu Dhabi Island have remained stable this quarter at AED 2,887/sq m per annum, average rents of retail centres outside Abu Dhabi Island Have also remained unchanged at AED 1 ,900/sq m per annum.

Vacancies remain minimal within established centres on Abu Dhabi Island, such as Marina Mall and Abu Dhabi Mall. Vacancies are much higher in newly completed centres, with some opening with significant levels of vacant space.

While there are a number of large malls in the supply pipeline, the majority are expected to materialise between 2017 and 2018. This additional supply could however cause rents to soften in the short to medium term as developers compete to secure the best retailers.

Total retail supply across the Abu Dhabi Metropolitan area stands at approximately 1.96 million sq m at the end of 2013, with 193,000 sq m of retail GLA added to the market in 2013, according to JLL latest report.

Retail stock increased by around 67,000 Sq m in Q4 2013 with the delivery of the World Trade Centre Mall on Hamdan Street which has introduced some new brands to the Abu Dhabi market including House of Fraser as a department store anchor which opened its first store outside of the UK and Ireland.

A number of retail centres within mixed-use developments have also been delivered this quarter, including the Eastern Mangroves Promenade Retail complex .

French supermarket chain Geant opened its second store in Abu Dhabi this quarter within Marina Square on Reem Island.

Further deliveries are scheduled for 2014 with approximately 388,000 sq m of retail GLA expected to enter the market by the end of 2014. This includes Yas Mall on Yas Island, Capital Mall within the 9712 BMC and Nation Towers on the Corniche.

In addition to these new malls, a number of further retail centres within mixed-use developments are expected to enter the market in 2014. These include retail space within Al Reef Community, Saadiyat Beach and Nation Towers.

Recent announcements of new super regional malls such as Sowwah Central, Saadiyat Mall/The District and Reem Mall togeter with the planned Marina Mall extension could increase the retail supply in Abu Dhabi substantially by 2017.

LEAVE A REPLY

Please enter your comment!
Please enter your name here