INDEX comes at a good time, Lu Buchanan

14 Nov '09

6 min read

• Retail sector: shopping centres – the analysis includes spending of IDC and fit-out for general requirements, and not the retailers' own spending on their outlets. Total value of retail projects with completion dates between 2009-2010 in the GCC is US$5 billion, with spending on fit-out and IDC at US$1.3 billion. Within the UAE, the most recent addition to Dubai's retail sector was Dubai Mall, which opened in 2008 with a GLA of 344,000 sqm. The Mall of Arabia is due to open in 2010 with a GLA of 400,000 sqm. Total value of UAE retail projects is US$2.6 billion, with fit-out and IDC estimated at US$644 million.

In Qatar, Doha currently has 700,000 sqm of retail space, which is expected to increase by 1.1m sqm in the next 5-6 years.It is likely that a sizeable amount of that new supply will enter the retail market between 2009 and 2010, with projects valued at US$313 million, and IDC fit out at US$79 million.The KSA's estimated GLA of 2.4 million sqm is expected to be complemented by another 4 million over the next 5 years. Retail sector projects worth over US$1.4 billion are expected between 2008 and 2010, including the mega Central Park Mall in Jeddah costing around US$1 billion. Estimated spend on IDC and fit-out on KSA is US$362 million. In Bahrain, around 18 malls supply the market, with 280,000 sqm of GLA, and retail mall space is expected to double between 2008 and 2012.The value of new malls in 2009/2010 is US$113 million, with fit out worth US$28 million.

• Residential Sector - Project Developers typically do not spend generously on IDC for residential projects, as this is something usually covered by the end-user. According to industry experts, 10-12% of total project value can be estimated for interior design. In the GCC, total residential construction projects in 2009/2010 are estimated to be worth US$90 billion, with US$10.8 billion on IDC and fit-out. In the UAE, Dubai has an oversupply of residential units, but Abu Dhabi is estimated to require over 120,000 additional units by 2012. It is thought that the period 2008-2012 will see the supply of high end residential properties that will require high end Interior design, with the middle income segment remaining unmet until 2012. Total residential developments in the UAE are worth US$60 billion, with an estimated US$7 billion spent on interior design.

In the KSA, project spending is expected to pick up significantly in 2010, and the estimated total value of residential projects is US$13.1 billion, with US$1.6 billion on IDC and fit-out.In Qatar, Doha will continue to experience strong residential demand over 2009 to 2012, and it has US$9.3 billion projects to be completed between 2009 and 2010, with a conservative US$1.1 billion estimated spend on fit out. Kuwait has US$1.4 billion worth of projects, with US$166 million spend on interior design; total residential projects in Bahrain are expected with a value of US$5.5 billion, with IDC and fit-out at US$656 million; and Oman has residential projects worth a total of just under US$1 billion, with US$128 million fit out.

INDEX 2009

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