Dubai’s retail space is being snapped up, in spite of high rental rates, according to latest research reports.

Now average rates stand at Dh600 per square foot in Dubai and Dh400 in Abu Dhabi.

While average rents for convenience stores and neighbourhood centres are between Dh25 and Dh200 per square foot, it’s as high as Dh400 to Dh550 per square foot for regional and super regional centres, according to Jones Lang LaSalle.

In spite of sky high rentals, prime retail space is being grabbed investors, as per the report.

“The current supply of retail floorspace per person is still relatively low in the UAE compared to more mature markets,’ said Craig Plumb, head of research Mena region, Jones Lang LaSalle.

“This is why the market is able to accommodate the large amounts of additional supply currently being developed,’ he added.

(Published on http://www.tradearabia.com on Thu, 31 Jul 2008)