Dubai is going to experience an oversupply of retail space in the next 3 years, by 2013 with the developers continuing to build malls in an already saturated market, as reported by Colliers International.

In a report released by the real estate consultancy, the shopping mall space in Dubai is going to expand by around 30 percent between the years 2010 and 2013.

The market will be experiencing an oversupply of more than a million square metres of total leasable area in 2013, the report further said.

The report also said that even though the retail sectors in does gain from the strong tourist demand, the fallout from the global financial crisis will in all probability have a dampening effect on this external demand.

The gap between prime and second tier mall space will also most probably broaden, warned the report.

The regional director of Colliers International, Stuart Gissing warned the landlords that they need to fight harder to retain their retail tenants by saying that the discretionary spending behavior of the consumes are going through alterations and that retailers are also being seen purging their brand portfolios in accordance with this.