Footfall and visits in the retail industry are expected to surpass pre-pandemic levels in 2022. In Abu Dhabi and Dubai, the number of people shopping increased by 6.7% & 6.3% over their pre-epidemic baselines, respectively.
Rents & New Supplies
The overall retail supply in Dubai now stands at 4.6 million square metres after about 186,000 square metres of retail space were supplied during the 1st quarter of 2022. 7,935 new lease agreements and 15,358 renewals of existing leases were signed in Dubai, representing 14.4% and 27.2% increases over the same time in 2016.
Super regional stock has continued to experience rent increases, although rents in local and neighborhood retail have been softening. Rental development has been uneven around Dubai.
In the 1st quarter of 2022, Dubai saw an average rental gain of 10.5% while Abu Dhabi saw an average rental decline of 7.8%.
Outlook for the retail industry remains favourable on the strength of increased demand from new local competitors and international brands. The industry of food and beverages in rents are rising in the region as a result of an uptick in revenue growth.
Main retail areas are anticipated to remain the trend for the year abreast. Although fragmented retail sector growth is anticipated to continue, cloud kitchen operators make up a larger share of the secondary market's demand for retail space, which is anticipated to increase further in the coming year.
Outshining with Expo 2020: UAE Hospitality Realty
The UAE's hospitality industry had a solid start from the year thanks to Dubai Expo 2020 and looser travel restrictions. The region experienced a considerable increase in all important measures in the first quarter of 2022, including occupancy rates, average day rates (ADR), and room revenue (RevPAR).
Offerings and occupancy
During the 1st quarter of 2022, some 3,500 keys were supplied in Dubai, increasing the total retail distribution to 144,000 keys. In the same time frame, Abu Dhabi's hospitality supply remained unaltered.
In the first 2 months of 2022, demand in Dubai hotels increased by 62% year over year, averaging 77%. At the first two months, attendance in Abu Dhabi resorts was 75% on average.
Compared to 61percent last year during the same time period, of 2022. Along with attendance, the average daily rate reached 222 US Dollars in Dubai and US Dollars 108 in Abu Dhabi, showing an increase of 53percent and 20percent YoY respectively.
OutlookThe Dubai Expo 2020, which saw an estimated 24 million visitors over the course of a six-month period, provided a strong foundation for the UAE hotel business to begin 2022. Period lasting until March 31, 2022. In the initial 3 months of 2022, the income per obtainable (RevPAR) in the Emirates hospitality sector steadily increased to USD 172 from USD 90 compared to the same time in 202135. This worldwide event-driven rapid growth may slow down in the short term but is anticipated to keep growing over the long run.