Dubai is planning to build more than AED10bn ($2.7bn) of new retail space ahead of the World Expo in 2020.
Real estate developers are building new mall space to serve the emirates steadily growing population, which Dubai Municipality expects to grow at 7.5 per cent a year leading up to 2020, rising visitor numbers as Dubais status as a tourism destination develops, and the influx of visitors expected for the Expo.
All together, there is more than 2 million square metres of retail space at various stages of development across Dubai. Contractors working in the UAE say the current rate for building retail space is about AED5,000 a square metre, meaning the cost of developing that space at todays prices is estimated at more than AED10bn. Likewise, some other already underway construction contracts have been awarded at different rates.
The largest project by far is the 743,000 sq m Mall of the World scheme that was relaunched in early July. Based on todays construction costs, the Mall of the World scheme will cost more than AED3.7bn to build, although the expectation is that costs will rise ahead of 2020. This means the cost of developing the mall could be 10-15 per cent higher than todays prices.
Other major projects include Nakheels Nakheel Mall on the Palm Jumeirah as well its Deira Islands Mall and Dragon Mart expansion, Emaar Propertiesexpansion to Dubai Mall, Meraas Bluewaters retail centre, Majid al-Futtaim Properties (MAF Properties) Mall of the Emirates expansion, and Al-Futtaim Groups expansion to Festival City.
|Project||Developer||New area (square metres)||Estimated construction cost (AEDm)|
|Mall of the World||Dubai Holding||743,000||3,700|
|Dubai Mall expansion||Emaar Properties||75,000||1,400|
|Dragon Mart expansion||Nakheel||177,000||1,000|
|Deira Islands Mall||Nakheel||186,000||929|
|IMPZ Mall||MAF Properties||100,000||500|
|Jumeirah Village Triangle||Nakheel||93,000||465|
|Jumeirah Village Circle||Nakheel||46,000||232|
|Ibn Battuta expansion||Nakheel||28,000||160|
|Mall of the Emirates expansion||MAF Properties||25000||125|
|Festival City Mall||Al-Futtaim Group||5000||100|