Retail - Sonntag, Oktober 12, 2008 19:22 - 0 Comments

Retail developers hit by higher costs

DUBAI // Regional retail developers are considering rolling back projects amid soaring inflation, volatile commodity prices and fears of a credit crunch spillover.

Graham Dreverman, the group managing director at Nakheel Retail, said the market “was definitely heading in that direction”.

“Prices for building were up by 40 per cent this year, so what’s happened is steel and concrete and the major components are coming down so we’ve proceeded, but we are definitely keeping an eye on things.”
According to Retail International, a British consultancy, 16.35 million square metres of retail space is scheduled for completion in the GCC region by 2010 with about 2.6 million sq m of gross leasable area set to be ready by next year. The UAE and Saudi Arabia will see the highest increases of gross leasable area in the GCC, contributing 44 per cent and 30 per cent respectively, according to Colliers International. Continue…