Dubai’s retail real estate sector has recorded AED1.1 billion in sales across 400 transactions in Q3 2025, marking the first time retail asset sales have exceeded AED1 billion in a single quarter.
The figures were released by Cavendish Maxwell, a real estate advisory group and property consultancy operating in the Middle East.
According to the report on Dubai’s retail and warehousing sector, retail transactions increased by almost 80 per cent in Q3 2025 compared to Q2 2025, and by nearly 30 per cent year-on-year. Off-plan transactions more than doubled, rising by 133 per cent compared to Q2. Year-on-year, off-plan transactions were up 65 per cent.
Dubai retail real estate transactions surge 80% in third quarter 2025
Rental renewal contracts rose 6 per cent against Q3 2024, while new contracts declined by nearly a third compared to the previous quarter.
Retail rents across Dubai increased by as much as 15 per cent in some areas, with a city-wide average rise of 7.7 per cent. Jumeirah Lakes Towers, Business Bay and Dubai Marina experienced the highest increases.
Dubai Mall continues to achieve 98 per cent occupancy, according to the report.
In the warehousing sector, rental renewal contracts increased by nearly two thirds (62 per cent) year-on-year.
Warehouse rents rose almost 17 per cent year-on-year on average. Jebel Ali recorded the highest increase at 21 per cent. Ras Al Khor, Dubai Investments Park, Dubai Industrial City and Umm Ramool also recorded higher-than-average increases.
“Dubai’s retail and warehouse markets continue to perform strongly, supported by high demand, constrained supply and sustained investor confidence. Population growth, record tourism levels and rising occupancy continue to push up rents, which are likely to see more growth in the near to medium term. In the retail sector, we expect to see growth among smaller, community shopping centres that focus on daily needs and convenience, as well as ongoing investment in flagship malls, such as the AED5 billion expansion at Mall of the Emirates,” Vidhi Shah, Director, Head of Commercial Valuation at Cavendish Maxwell said in a statement.
“Meanwhile, Dubai’s warehousing shows no sign of slowing down. As the city further reinforces its position as an ever-expanding regional logistics hub, tenants are prepared to absorb double digit rent increases to secure premises in a market where alternatives are limited,” she added.
