Nakheel’s Dh 6 Billion Deira Mall to be the biggest in Middle East
Recently Nakheel Properties announced Deira Mall which is set to be built in the Deira Islands Dubai (UAE). The mall will be the biggest mall in the entire MENA region when completed and will be built with a total estimated value of Dh 6 billion.
Deira Mall will consist 4.5 million Sq. Ft of leasable shopping space and will have more than 1,000 shopping outlets, restaurants and entertainment facilities. Furthermore, the mall will consist of 4.5 million Sq. Ft. of Gross Leasable Area (GLA) surpassing the GLA of Dubai Mall (3.77 million Sq. Ft). Additionally, resorts and water park projects will also be built alongside Deira Mall project to enhance its attractiveness.
UAE & Dubai – Retail Sector Growth
With the rising consumer spending power of residents and the increasing flux of tourists to the Dubai and UAE, the country’s retail sector is regarded as one of the fastest growing sectors. Dubai in particular is the major contributor to the UAE’s retail sector with more than 49 per cent of the retail stock held by the Emirate.
According to Dubai Chamber of Commerce and Industry, the total consumer spending for the year 2017 was estimated at Dh 723 billion which is expected to reach Dh 958 billion by 2021, growing at a CAGR of 7.5 per cent. Experts believe that Dubai’s retail sector has great potential to further grow in the future.
Dubai – Major Upcoming Retail Outlets
The strong demand for Dubai retail sector will continue to fuel the increase in the number of retail outlets in the Emirate. A number of major retail outlet projects are under way in the Emirate including:
- Cityland Mall – 1.13 million Sq. Ft. (Operational – Q2 2018)
- The Meydan One Mall – 6 million Sq. Ft. (Expected completion – 2021)
- Avenue Malls – 861,113 Sq. Ft. (Expected completion 2020)
Investment Opportunities in Dubai’s Retail Sector
Despite the implementation of Value Added Tax (VAT), the retail sector in Dubai is set to see an increase of 3 per cent by 2018. When completed, Deira Mall will be one of the major malls in Dubai, along with The Mall of Emirates, Ibn Battuta Mall and the Dubai Mall. The resorts, water parks and the real estate developments alongside the Deira Island will further improve mall footfall. As Dubai prepares to welcome 25 million visitors for the EXPO 2020 event, Dubai’s retail sector will continue to remain attractive, providing great opportunities for future investment.
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