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UAE retail real estate to grow 12pc

Trade Arabia
UAE retail real estate to grow 12pc - Property - Real Estate - UAE - Retail

Retail real estate sales in the UAE are likely to grow around 12 per cent annually from last year to 2011, according to a report.

Middle East Council of Shopping Centres (MECSC) named Saudi Arabia as the country with the best retail opportunities in the current situation while Bahrain will be a direct beneficiary being a favourite tourist hub for Saudi nationals.

But due to expected short-term oversupply of gross leaseable area in some markets this year, mall and leasing managers need to develop new strategies to reduce the impact of sharp vacancy increases and downward pressure on rental rates, MECSC, the Middle East's trade body for the retail real estate, said in the report.

'Given the tough market conditions and the impact of the global economic slowdown that the industry is facing, it is the need of the hour for the industry to come together and formulate new strategies to help overcome the challenges and make way for future growth' said MECSC regional director Kim Redman.

The MECSC is organising a workshop titled 'The changing dynamics of retail leasing management' on April 8 and 9 in Dubai.

'There is going to be a clear slowdown in upcoming projects, however this could be of benefit for the retail market to look back, being able to focus more on existing shopping malls and taking the opportunity to develop these even more,' MECSC president Maher Al Shaer said.


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