Page 170 - SOBHA REALTY PR REPORT - JULY 2024

Experts say these two classes of retail centres, the smaller community mall and the
“headline grabbing” mega-mall, exemplify precisely what’s driving Dubai’s success and
growth in this industry.

“Dubai’s world-class mega-malls are very much part of Dubai’s tourism offering and are
extremely popular with both tourists and residents all year round,” says Andrew Elliott,
director of commercial agency at Chestertons Mena.

“Community malls offer on-the-doorstep shopping, dining and entertainment for families
and individuals,” he says.

“With new residential developments on the way and existing developments continuing to
expand, there is still plenty of opportunity for local community malls.”

Also slated for delivery this year are another 1.8 million sq ft of leasable area, according
to research company Nikoliers, including across expected malls such as the Al Khail
Avenue mall and the Dubai Expo mall, though just how much progress is there on those
is unclear.

The new Sobha Realty mall will be relatively contained in size, with about 35 stores,
restaurants, gyms and other amenities.

It is designed to cater to the needs of growing residential communities east of Dubai
Design District, which currently have little retail access outside of Dubai Mall, more than
10km of busy highways away.

Providing residents with a range of local conveniences that community malls typically
offer – from grocery stores, pharmacies and medical clinics to small shops and
restaurants – also fits the Dubai authorities’ newly announced embrace of the “20-
minute city”.

“Take Dubai Hills Mall, for instance. The venue, which is quite large and high-end, has
become popular among residents along Umm Suqeim Street, such as those from
communities like Dubai Hills, Arabian Ranches and Moudon,” says Imran Sheikh, a
partner at BlackOak Real Estate in Dubai.

“The retail space is filling up fast, and the mall is always packed. Contrary to
expectations, it seems like there has been no cannibalisation of shoppers from Dubai
Mall or Mall of the Emirates,” he says.

“So, Sobha building a new mall doesn't surprise me. Malls closer to communities with a
large radial reach will succeed.”

Haider Tuaima, director of real estate research for ValuStrat, has been in Dubai for
almost 30 years and remembers when the city proudly counted seven malls in the mid-
1990s.

https://www.agbi.com/analysis/retail/2024/07/does-dubai-need-more-malls-the-people-say-yes/