The retail
market in Dubai began modestly in the 1990s with Burjuman, Al Ghurair Centre
and Deira City Centre being the prominent malls. From that time the retail market
has progressed significantly; and today Dubai is home to some of the world’s
best malls such as Dubai Mall and Mall of the Emirates and other impressive developments
to make what we call Dubai today.
It has been
a long journey from the souks of old Dubai to international standard super
regional malls, and the way this transition has been managed has brought Dubai
into the spotlight of retail development globally. Today, Dubai’s retail
landscape is undergoing another transition, this time from standard malls to
more innovative and creative retail developments that aim to encapsulate the entertainment,
leisure, shopping, and gastronomic experiences. Some examples of these more
innovative retail concepts are The Beach by Meraas, and the recently announced
Mall of the World and Dubai Canal developments. The extension strategy for
Citywalk is another example, where trendy box retail, the first of its kind in
Dubai, is under construction.
Existing
retail developments are witnessing this evolution and many have chosen to
upgrade their malls to meet the coming competitive challenges. Burjuman Centre
and Wafi Mall are repositioning while Mall of the Emirates, Dubai Mall and Ibn
Battuta Mall has expansion strategies in place to accommodate the increasing
and evolving retail demand.
This change
is not just limited to mega retail projects but can also be seen with community
sized retail popping up in proximity to major residential communities to
provide consumers with shopping ease, a sense of community and quick access to
goods that serve their everyday needs. The Mall in Jumeirah is a perfect
example of an upcoming upscale community centre that is aiming to fill this gap
in the market.
As
developers gain insight into the consumer mind they understand that providing
the right experience in terms of the five senses, customer service, ambience
and decor are just as crucial for customers as the accessibility, parking,
location and tenant mix.
Developers
will also be forced to distinguish themselves and add character to their retail
projects to create their own place in the market. They need to attract
tourists worldwide and increase retail spend.
The
government of UAE works to promote UAE’s image as a stimulating destination
globally by providing enriching experiences, including the impressive display
of fireworks every year at Burj Khalifa on New Year’s Eve, the hosting of Expo
2020 and Formula One. Dubai has also uniquely succeeded in bringing a piece of
every country into its own city through Global Village, which displays
merchandise from around the world, creating a one stop shop for tourists to see
and purchase a variety of international products in one place. Additionally
attractive sales such as the Dubai Shopping Festival and Dubai Summer Surprises
occur annually to further attract retail spend from around the world,
especially from other Middle Eastern countries.
JLL’s
interaction with prominent regional real estate clients has given us insight
into initiatives they are taking to be on the forefront of innovation. In this
new age where consumers hold the power and where change is the only constant,
we expect to see in the real estate in Dubai aiming to further outdo itself and
competitively execute projects that thrill and excite.
Source: Roots Land Real Estate
