Housing and retail: Finding the right mix
The link between residential and commercial space has been a recurring theme in real estate developments across the UAE. Creating the right mix has been a key challenge for developers, especially when integrating retail with residential schemes. Retail has certainly emerged as a vital component of any development and in many cases has helped increase the marketability of a building or community. Dubai real estate developers are accordingly getting more precise in targeting specific buyer segments and tenants, aiming to cultivate a self-sustaining community with a vibrant retail centre at its core.
Sanjay Chimnani, managing director of Raine & Horne Dubai, notes that most developers are retaining retail components for long-term lease. “The retail units are doing well in the market, based on the supply of the units and the occupancy of the building,” says Chimnani. “There is good demand for these across Dubai and developers look for the right mix of tenants that will enhance the value of their building, as well as those businesses that would be good long-term tenants.”
By leasing the retail component of a development, the developer keeps reasonable control of the services offered to the community. “Some developers have sold their retails to individual owners; these developers are not over selective as to whom they sell to but they are very particular with concept approvals in order ensure the retails add value to the community and in line with municipality standards,” says Sandrine Loureiro, operations manager of Rocky Real Estate.
Getting retail units occupied is just one part of the challenge; driving footfall into these shops is another important task that keeps developers busy. Some devise longer hours, while others go for a much broader mix of offerings
