Dubai is preparing to construct more than $2.7 billion or AED10 billion of new retail space ahead of the World Expo in 2020.
Realty developers are constructing new mall space to serve the emirate’s progressively enlarging population, which Dubai Municipality anticipates to increase at 7.5% each year leading up to 2020, growing visitor numbers as Dubai’s standing as a tourism destination advances, and the arrival of guests predictable for the Expo.
Simultaneously, there is more than 2 million square metres of retail space at several phases of advancement across Dubai. Contractors working in the UAE state the existing rate for constructing retail space is about AED5,000 a square metre, meaning the estimated cost developing that at today’s prices goes beyond AED10 billion. Some of the other construction contracts already under way have been tendered at dissimilar rates.
Mall of the World scheme, the largest project by far is the 743,000 sq m that was recommenced in early July. Based on today’s structure costs, the development system will cost more than AED 3.7 billion, even though the probability is that the costs will increase ahead of 2020. This means the cost of building on the mall could be 10-15% higher than in the present day’s prices.