DUBAI // With soaring commodity prices driving more property developers to incorporate retail components to maximise their return on investments, industry leaders who gathered at Cityscape Dubai this week stressed the importance of mixed-use developments.
"Retail brings the lowest return of all the sectors; however, what happens is it is a catalyst for driving success within a precinct," said Graham Dreverman, the group managing director of Nakheel Retail.
According to Al Mazaya Holding, construction costs in the GCC increased about 30 per cent last year and 50 per cent in the first half of this year.
While the price of certain commodities and building materials have eased slightly in recent weeks, several challenges remain, including high transportation costs, supply shortages, the lack of contractors capable of delivering projects on time, and shortages of skilled labour.
"All property developers are facing major challenges right now," said Jocelyn McBride, the group corporate communications and marketing manager for City of Arabia, where construction is under way on the colossal Mall of Arabia, set to become the biggest mall in the UAE when it is completed in 2010.
"You've got rising world prices on commodities such as steel, concrete, glass - literally, the building bricks are costing more and more each day and that is endemic," she added.
Worth about Dh367 billion (US$100bn), the retail sector serves as a major driving force behind the economies of the GCC and has become the second-largest non-oil industry in the region. Retail spending in the UAE alone is projected to reach Dh37.4bn a year by the end of the decade.
"There should always be a good mix of commercial, residential and retail in any development," said Asher Schön, the vice president of Schön Properties. "Dubai is the ideal location in the world for the retail industry so it makes sense that this model would work so well."
Developers insist that wherever you build malls, communities and tourists will follow. An evolution of culture and demographics, the population explosion and the increasing spending power of residents have contributed to the desirability of all-in-one developments.
"The shopping centre has become the social hub," added Mr Dreverman. "There is a huge correlation between enclosed shopping malls and the growth of the economy during the summer period."
Nearly all of the country's major developers have adopted the mixed-use model as the standard for new projects. Recently, Bani Yas Investment and Development launched an ambitious Dh2.2bn multi-use development set to house a 140,000 square metre shopping mall, with plans to eventually build a school, medical centre, a 20,000-seat sports stadium and a ballroom which residents can use for special occasions without charge.
Officials with Dubai's new Sports City complex also followed suit, announcing a major retail component as part of the world's first integrated sports city.
More than 353,000 million sqm of retail space are currently being built across the Dubailand complex, with the new Arena Mall to be linked directly to two of the multipurpose Sports City stadiums.
Also last month, Dubai Properties Group officially opened The Walk in the Dubai Marina, located below the Jumeirah Beach Residences. Operated by Dubai Retail, a subsidiary of Dubai Properties Group, the 1.7-kilometre promenade features more than 170 different outlets with a total of 305 scheduled for completion in the coming year.
"People are now looking for the complete set of values in terms of a place for their child to go to school, a place to do their shopping, a place where they can spend their leisure time," said Ms McBride.
"The city is getting bigger, it's getting broader, it's getting busier and I think people increasingly want to do everything at one location."
vsalama@thenational.ae
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Starring: Winona Ryder, Michael Keaton, Jenny Ortega
Director: Tim Burton
Rating: 3/5
Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
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MATCH INFO
Uefa Champions League quarter-final (first-leg score):
Juventus (1) v Ajax (1), Tuesday, 11pm UAE
Match will be shown on BeIN Sports
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How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
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Know your camel milk:
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Texture: Smooth and creamy, with a slightly thinner consistency than cow’s milk.
Use it: In your morning coffee, to add flavour to homemade ice cream and milk-heavy desserts, smoothies, spiced camel-milk hot chocolate.
Goes well with: chocolate and caramel, saffron, cardamom and cloves. Also works well with honey and dates.
TEACHERS' PAY - WHAT YOU NEED TO KNOW
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
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WHAT IS GRAPHENE?
It was discovered in 2004, when Russian-born Manchester scientists Andrei Geim and Kostya Novoselov were experimenting with sticky tape and graphite, the material used as lead in pencils.
Placing the tape on the graphite and peeling it, they managed to rip off thin flakes of carbon. In the beginning they got flakes consisting of many layers of graphene. But when they repeated the process many times, the flakes got thinner.
By separating the graphite fragments repeatedly, they managed to create flakes that were just one atom thick. Their experiment led to graphene being isolated for the very first time.
In 2010, Geim and Novoselov were awarded the Nobel Prize for Physics.
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