Friday, August 08 - 2008

Dubai shopping malls unsustainable

Shopping malls in Dubai are the trickiest real estate sector in the emirate, as they risk saturation and being economically unviable. Nicholas MacLean, Managing Director of CB Richard Ellis, estimated that by 2010 shopping malls will have a spend of $2,003 per square foot, which is 'not sustainable'.

United Arab Emirates: Tuesday, March 04 - 2008 at 00:11
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Some 4.2 million square metres of mall space is being built, including the biggest and second biggest malls in the world at Bawadi and City of Arabia. He said the government has to ensure tourism takes up the slack in spending as the population will not grow fast enough to hit a more sustainable figure.

'The way those numbers will work properly is to ensure that visitors to the UAE take more than 50% of the total spending. If you factor that in then yes it is sustainable. But with the resident population alone, no it's not.'

MacLean estimated that including potential tourism spending in malls, that low figure could hit just over $7,000 a square foot, which would then make malls sustainable.


Rob Jones Rob Jones, Editorial Director
Tuesday, March 04 - 2008 at 00:11 UAE local time (GMT+4)

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