The retail sector in Dubai remained subdued in 2018, with rental declines prominent throughout Dubai, particularly in the case of line retail shops in Bur Dubai, Deira and other secondary locations registering higher vacancy levels. Meanwhile, vacancy levels in super-regional and regional malls as of Q4 2018 remained relatively stable at 9%. Developers handled this downward pressure by becoming increasingly flexible on lease terms and offering incentives to retain existing tenants and new entrants. The unit size requirements from retailers continued to decrease, with more than 18% of the total enquires over 2018 being for space between 1,000 and 5,000 sq ft. Reduced demand from domestic consumers as a result of rising living costs affected the sales of luxury brands more than affordable brands over the year.