State of Middle East Retail Real Estate
Offering a look at the thriving mall culture in the Middle East fuelled by diverse retail offerings, an exciting mix of retailtainment and a seamless visitor experience, this report examines the evolving face of regional shopping centres and a shift in tenant mix.
The GCC retail market has witnessed “unprecedented level of demand,” indicated CBRE’s 2024 Middle East real estate market outlook report.
Based on data from Oxford Economics the GCC retail market is expected to grow by more than 2% in 2024 to reach over AED900 billion ($246 billion) in retail sales by the year end, shared Anthony Spary, Head of Retail – CBRE MENA. The UAE is expected to lead the way in terms of annualised growth at close to 4.5%.
Demand outstripping supply
As a result, several key markets in the GCC – Dubai, for example, operating at 97% occupancy rate across assets – are facing a lack of quality retail space leading to skyrocketing rentals. From the days of speculating oversupply, it seems as if retail real estate has entered an era where demand is outstripping supply, especially in case of certain popular super-regional malls.
Data from international consultancy firm Nikoliers estimated that average rental rates on new leases have gone up 71% in popular malls such as Mall of the Emirates, Dubai Mall and Dubai Marina Mall. In the Kingdom of Saudi Arabia too, retail rents increased through the past year, indicated Deloitte’s 2024 KSA market review report, as the average regional and super-regional mall rents rose by 3%.
“We are facing challenges with undersupply, which is placing significant pressure on brands expansion and rollout plans across the region,” Spary observed. “Whilst this is likely to support rental performance, it will impact new occupier activity in the sector. More so, the trajectory for secondary and tertiary assets is yet to change meaningfully, and we are unlikely to see this change without capital expenditures and asset repositioning.”
Download the full report here.
State-of-Middle-East-Retail-Real-Estate-September-2024-IMAGES-RetailME-Magazine
Watsons to open 20 new stores in the GCC
In 2020, global health & beauty retailer AS Watson Group signed its
April 29, 2024 | By Rupkatha B / 
What does it take to sustain profitable growth in the post-IPO phase?
Mahalle began its operations in 2022 as an “Authentic Turkish Grocery in
“Retail is a people’s business. When building a retail brand or the
From being one of the first retailers in Dubai to ban single-use
For starters, Rabbit is a growing e-commerce grocery platform in Egypt always
In 2024 grocery retail major Choithrams has achieved several milestones underscoring its
Industry pioneers are embracing a comprehensive strategy that integrates consumer insights, digital
The regional grocery retail market is evolving fast keeping pace with constantly
From ethical and local sourcing to adopting cutting-edge technologies to curb food
The regional grocery retail market is becoming more and more diverse, offering
/ 
In an era where digital transformation is pivotal, shopping malls are not
Saudi Arabia’s retail sector is rapidly transforming under Vision 2030. E-commerce, brick-and-mortar
This panel discussion at MRF 2024 explored the evolution of retail spaces,
At the heart of retail lies the consumer, Deloitte pointed out while
The GCC retail industry is projected to grow at a compound annual
An exclusive piece contributed By Oliver Morgan, Partner, Real Estate Development &
In the bustling retail environments, where shopping malls are not just places
The retail landscape in the Middle East is undergoing a seismic shift,
In today’s fast-paced retail environment, shopping malls are continually searching for innovative
Times Square Center, located in the vibrant heart of Dubai, stands as
Previous Article
