Dubai back on list of world’s most expensive property

Dubai remains the premier luxury city in the Middle East, according to Cushman & Wakefield (C&W), which has put back the emirate on the list of the world's most expensive retail areas this year.

The global real estate services company, in its survey of 326 prime locations across 62 countries, placed Dubai on the 40th position in 2012 list with annual retail rents at $153 per square feet per year. In 2011, Dubai was not featured on the list.

“The retail market saw good occupier demand for luxury shopping centres over the year, with fashion brands particularly active. Good quality retail space remains however limited and the scarcity of new supply has generally kept prime rents stable – albeit the pipeline for next year is considerable,” C&W said.

It added: “Dubai remains the premier luxury city in the country and region, with shopping centres such as Wafi, Dubai Mall and Mall of the Emirates offering a diverse range of retailers and segments. Occupier activity was still polarised, however, with the aforementioned shopping centre categories attracting significant interest, in contrast to subdued demand elsewhere.”

In Abu Dhabi, the consultancy said the Avenue at Etihad Towers saw a number of new arrivals, with retailers such as Canali, Chloe, Hermes and Salvatore Ferragamo opening their first store in the city.