Rents keep rising while space is in short supply at Dubai’s malls

Demand for retail space is outstripping supply in Dubai’s most popular malls, leading to hefty rent rises for all tenants, whether big, small, established or new.

The highest rents on new leases were recorded in Mall of the Emirates and Dubai Mall, according to a report by consultancy company Nikoliers, with Emaar Malls prime assets boasting occupancy of nearly 99 percent as of 30 June 2024.

Two UAE executives – Tapan Vaidya, CEO of pizza chain Papa John’s, and Ashish Panjabi, chief operating officer of electronics retailer Jacky’s – tell AGBI how the higher rates affect larger businesses.

Retail consultant Maire Morris explains how the fluctuations, which could range from 10 percent to up to 70 percent makes it “particularly difficult” for smaller retailers, many of whom cite high rents as the reason why they have withheld expanding into some of the city’s bigger malls.

AGBI approached mall operators Majid Al Futtaim, Emaar Malls and Damac Malls for comment, but they either declined or did not respond.

Watch the video to find out more.