UAE developers 'focus on retail assets'

There has been a shift among developers in Dubai and elsewhere in the United Arab Emirates (UAE), with an increasing number of firms looking to retail and hospitality assets to boost their property income.

Analyst at HSBC Bank Middle East Patrick Gaffney explained developers are looking for a regular source of revenue, as the volume of UAE residential property sales has fallen significantly.

"The sectors that are doing the best are retail and hotels because of strong tourist arrivals," he asserted.

Business Monitor International estimated revenue from retail climbed by 5.3 per cent in 2011 to reach 113 billion UAE dirhams (£19.6 billion). The organisation has predicted this will increase further, hitting 157 billion UAE dirhams by 2015.

Mr Gaffney advised investors to look towards smaller malls and supermarkets near residential developments, rather than to focus on the large shopping centres.

Last month, Jones Lang LaSalle noted the Dubai hotel market is likely to improve over the course of 2012, while in the retail sector, there will be increasing polarisation between the performance of different shopping malls.
 

Like this? Then share with your friends and colleagues!