Dubai’s retail sector is witnessing a rise in annual rental rates, which has hit $1,800 per sqm, according to a report.

The report by Kuwait based Global Investment House, information partner of Reidin.com, reveals that there is an impending oversupply in retail spaces in the emirate, which is set to push rental rates downwards in the coming years.

Reports published by Cushman and Wakefield, an information partner of Reidin.com, have revealed that there is tightness in the availability of units in prime locations, with retailers increasing focus on AAA locations and their efforts to scale down presence in less profitable areas expected to result in downward adjustment in rents in secondary streets. Occupier demand is also expected to continue being selective and thus preventing global rental growth from spiking unless a period of recovery ensues.

“The upward movement in the rental rates within Dubai’s retail property sector is reflective of the correction phase that is sweeping the UAE’s real estate sector, which validates the high value of maintaining presence within one of the world’s most sought-after retail destinations,” said Ahmet Kayhan, chief, Reidin.com.

“Amidst the wide expanse of investment opportunity within the retail real estate markets - whether in Dubai or in other emerging destinations, we offer ‘RetailFocus’, which provides relevant information that can help save the resources, time and money of users seeking valuable information.”

Dubai’s global repute as a premier leisure and shopping hub has created a significant impact on the local retail scene, with further statistics provided by Colliers International, Reidin.com’s information partner revealing that premium retail destinations such as Mall of the Emirates, Dubai Festival City and Burjuman have emerged as the most expensive in the UAE.

Among the establishments that offer the most extensive gross leasable area (GLA) across the emirates are Dubai Mall (344,000 sqm), The Walk (1500 sqm), Oasis Mall (60,000 sqm), Mirdiff City Centre (183,000 sqm), and Dubai Marina Mall (77,000 sqm).

Reidin.com has pioneered the concept of providing extensive and interlinked databases of shopping centre and retailer profiles, GLA, footfall statistics, price data, news, research, upcoming retail projects, owners, developers, and property manager profiles, all of which are supported by analysis and advanced comparison tools, and a powerful search engine, he added.-TradeArabia News Service