DIP free zone registered 280 new entities, while 900,000 sq m of retail space to soon be constructed in Dubai.
While large free zones and Dubai industrial areas such as Dubai Investments Park (DIP) attract more and more occupants, commercial property sector’s supply is growing in different parts of Dubai, putting pressure on rentals.
From January to April 2017,
Such a surge of interest in DIP among industrial tenants is explained by its favorable strategic location near the Expo 2020 site and
Meanwhile, tenants of retail units, whose interests are not tied to a particular area, will, on the contrary, soon get a bunch of new opportunities, including reduced rents for premises in malls, for about 900,000 square meters of new shopping and entertainment centers is now being delivered in different areas of Dubai. It is expected that 54% of new retail spaces will be located in super-regional malls with 800,000 square feet or more of gross leasable area.
The above substantial number of new retail premises will enter Dubai real estate market in the next two to three years, according to Knight Frank. This means that store tenants will look for novelty and better quality when choosing a lease, which means that old malls will have to revise rentals, although, so far rental prices in this segment of the Dubai real estate market have been kept stable, without sudden fluctuations.