Property in Dubai
Dubai retail sector may see tough times ahead
The malls in Dubai are likely to see tough times ahead, if the landlords continue to stop re-negotiating high rents, said the Managing Partner of the Dubai-based Rivoli Group.
Speaking during the Reuters Global Luxury Summit in Dubai, Ramesh Prabhakar, said that by the end of the year, it would be clear, as to how retailers would react after the traditionally quiet summer months and the Holy month of Ramada, which ends around 20th September.
Just as the commercial property and real estate, retail rents too, soared, with the shop-owners flocking to catch space in malls. But unlike real estate, the shopping developers have been hesitant to reduce prices, hoping that they could ride out the worst of financial crisis.
Rivoli is one of the retailers that expanded rapidly when the Dubai economy boomed during recent years, with high oil prices supporting strong regional growth rates, strengthening the position of the emirate as a regional trade and tourism hub.
Dubai has been established as the regional fashion capital, housing about 40 or more malls, including the one featuring indoor ski slope, the one themed on the travels of famous Middle Eastern geographer, and another described as world's largest.
Posted on 10/6/2009