Dubai developers shifting their focus from Mega-Malls to Small Community Centres

From the last couple of decades, the city of Dubai has been known for its mega malls and big shopping centers. However, recently Dubai real estate developers realized that the trend and need of mega malls has shifted and therefore they now plan to concentrate on small scale retail centres. Shopping centres, like Mall of Emirates and Dubai Mall have used everything, such as huge aquariums and ski slopes, to attract tourists. However, only 15 – 30 percent vacancies are available in existing malls during the third quarter of 2011 and no new large malls are expected to complete till 2014.

According to a director of Dubai real estate consultancy, the residents of Dubai or UAE have decided on what kind of malls they will like to visit in future. The residents need shopping centers nearer to their homes; they need convenient and easy shopping facilities to meet their daily needs. The chairman of Nakheel properties, a government owned development company in Dubai, also confirmed that they are shifting their focus to community malls and announced to construct two local shopping malls. Emaar, one of the largest developers in UAE has also recently built 6 community centres in different areas of Dubai.

Many analysts and experts are of the view that the entity which has not been hit primarily by the global recession is the local shopper. The obvious result is that the local community centres, which aim to fulfill the daily needs of the locality, are likely to remain more profitable. From economic perspective, these mega malls are no doubt among the greatest assets of Dubai; these malls have attracted wealthy tourists from adjacent Emirates and all around the world. UAE is known for its intense heat in summer season, these mega-malls are equipped with centrally air-conditioned halls which become the oasis for people against the scorching heat of 46 °C and at the same time make spend considerable amount of money. For Dubai citizens, these mega malls are essential part of their life.

Developers of Dubai properties appear to have mixed feelings about not focusing on bigger malls right now as some are focusing on smaller community centres while others are still in the favor of mega malls. Mall of Arabia is expected to complete by the end of 2015 and is expected to be the biggest shopping centre in Dubai and one of the biggest in the world.