The Gulf Cooperation Council’s (GCC) retail real estate market is the fastest growing in the world, with more than 16.35 million square metres (m²) of Gross Leasable Area (GLA) expected to be completed by 2010, according to Colliers International - one of the top three global property service consultants.

The increase represents a massive 565 percent growth in the available GLA found in the region since 2000, up from 2.46 million m² at the start of the millennium.

According to Colliers International’s inaugural GCC Retail Report, the UAE and Saudi Arabia will see the highest increase, contributing 44 percent and 30 percent respectively of the GLA by the end of the decade.

Kuwait will be the third largest provider making up 10 percent of the supply coming online by 2010, with Qatar supplying eight percent, Bahrain seven percent and Oman with one percent.

Stuart Gissing, Regional Retail Director, Colliers International, said: ‘The next four years will see an explosion of new retail space, which is unlikely to be paralleled by any other global region. GCC countries have made massive investments into their retail real estate markets and we are seeing some of the world’s most spectacular malls come online, giving the region increased international recognition.

‘Shopping is one of the favourite leisure activities in the Middle East and this significant investment in retail real estate is evidence of this. Developers are creating holistic shopping and entertainment destinations to meet the changing needs of the local and tourist populations.’

Dubai will witness the largest actual increase in GLA by the end of the decade, from 1.37 million m² in 2006 to 4.25 million m². In contrast to some other GCC states, Dubai will not undergo a period of stabilisation for retail real estate in the foreseeable future.

In terms of leasable area, over 218,000m² of GLA was released onto the market in 2006. In 2007, close to 358,000m² of GLA is expected to be unveiled, followed by a massive 969,000m² of GLA in 2008. This year alone will see a 26 per cent increase in the amount of leasable area available in Dubai over the preceding year.

Kuwait is expected to see the largest percentage growth in domestic retail GLA with an increase of 233 percent coming online by 2010 - which represents a rise from 345,000 m² in 2006 to 1.15 million m² by the end of the decade.

The leasable area in Abu Dhabi is set to increase from 574,000m² at the end of 2006 to 1.4 million m² by 2010, an increase of 145 per cent, with the UAE capital focusing on developing its Grade A retail space.

According to Colliers International’s research, approximately 450,000m² of gross leaseable retail space currently exists in Qatar, with an estimated 500,000m² GLA scheduled for completion between 2007 and 2010, and a further 235,000m² in planning phases to be delivered beyond this date. The majority of forthcoming retail supply will be concentrated in mall developments, predominantly but not exclusively located in Doha.

In Bahrain, there are 278,000m² of GLA in shopping centres in Manama, with an additional 600,000m² of GLA under construction, an increase of 216 per cent by 2010.

In 2006, Colliers International was tracking 4.45 million m² of existing retail space in Saudi Arabia, 2.1 million m² of which is in Riyadh and 1.7 million m² in Jeddah. By 2010, the available space will increase by 56 per cent to 6.95 million m². New supply is concentrated in Riyadh and Jeddah, with 765,000 m2 to be constructed in Riyadh and 870,000 m2 in Jeddah.

Source:
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