Dubai malls will have too many shops for rent and too few tourist shoppers by 2013, a report said on Sunday. "Dubai shopping mall space is set to increase by approximately 30 percent between 2010 and 2013," global real estate consultants Colliers International said in a report.
The market will see an oversupply of over one million square metres (10.8 million square feet) of gross leasable area in 2013, it said. "While the Dubai retail sector does benefit from strong tourist demand, the fallout from the global financial crisis is likely to have a dampening effect on this external demand," it added.
The report said neighbouring Abu Dhabi's retail sector, which remains undersupplied in leasable areas, is likely to see an increase to 874,500 square metres (9.4 million square feet) in 2013, and almost 1.1 million square metres (11.8 million square feet) in 2015.
"The Dubai and Abu Dhabi markets remain upbeat," the report said. It noted that Dubai has established itself as a "global retail platform and entry point for international brands into the region," while oil-rich Abu Dhabi has a significant forthcoming supply of retail space combined with a strong domestic consumer purchasing power.
Dubai has emerged as a regional hub for trade and tourism, with billions of dollars invested in large and modern malls, featuring tourist attractions like an indoor ski slope and a giant aquarium.
The global financial crisis dealt a severe blow to Dubai's economy, bringing its rapidly growing property sector to a virtual standstill, but tourism and trade are touted to be leading the economic recovery.
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