Cushman & Wakefield Core has released its Dubai Annual Retail Market Update 2025/2026, showing that the emirate’s retail sector continues to strengthen amid record tourism inflows, rising population, and a development pipeline that reflects scale and diversification.
As Dubai launches the 31st edition of Dubai Shopping Festival, retail performance continues to strengthen, with the report’s insights reaffirming the city’s positioning as one of the world’s leading retail destinations.
According to the report, Dubai Mall‘s Fashion Avenue now ranks as the 11th most expensive retail location globally, with rents up 9 per cent year-on-year. This places Dubai among the top five global cities for retail rental growth.
Super-regional malls in Dubai maintain dominance amid new supply pipeline
Retail remains a cornerstone of the local economy, contributing 25.3 per cent of Dubai’s GDP, the highest share of any sector. This is supported by consumer spending and inflows of global wealth.
Dubai’s existing retail landscape remains anchored by its super-regional malls, which continue to achieve 95โ99 per cent occupancy and attract tenant demand, the report said.
When looking at upcoming supply, Al Khail Avenue and Dubai Expo Mall are the retail developments scheduled for 2026 and 2027. Extensions to Dubai Mall and Mall of the Emirates further reinforce commitment to the luxury, F&B, and experiential retail segments.
The recently announced Dubai Square mall, a retail and lifestyle landmark with a total investment of AED 180 billion, is expected to lead the upcoming retail supply pipeline in the mid-term.
Super-regional malls continue to achieve the highest retail rents in the market, with rates between AED 400 and AED 2,000 per square foot. These rates are underpinned by near-full occupancy levels and long waitlists.
Rents in destination-led retail and retail within mixed-use developments are also at an all-time high. Downtown Dubai, Palm Jumeirah, DIFC, and Dubai Marina are witnessing demand and record rents for both licensed and non-licensed units.
Community retail ventres in Dubai reach full occupancy within year
Destination-led and community-focused retail is growing, with smaller neighbourhood centres in Al Barsha, Motor City, and Nad Al Sheba achieving full occupancy within a year of completion.
Developers are integrating 80,000โ140,000 square feet of community retail into mixed-use masterplans. These are anchored by supermarkets, clinics, fitness centres, and homegrown F&B operators.
Prathyusha Gurrapu, Head of Research at Cushman & Wakefield Core, said: “Dubai’s retail market continues to evolve in line with its growing population and the diversification of resident lifestyles. We are seeing strong performance in both super-regional malls and well-designed neighbourhood centres, driven by demand for convenience, experience, and quality. This balance is creating a resilient and increasingly sophisticated retail ecosystem across the city.”
Warren Krawchuk, Head of Retail, added: “Dubai is redefining retail by merging lifestyle, design, dining, and culture into immersive destinations that go beyond traditional shopping. Demand is evolving toward formats that blend experience, convenience, and long-term value for both occupiers and landlords.”
Phygital retail strategy gains momentum in Dubai shopping market
The report forecasts continued strength in prime retail rents in 2026, while secondary and suburban markets are expected to see absorption supported by population growth and infrastructure expansion.
The long-term trajectory points to a balanced ecosystem, where large-format malls, mixed-use destinations, and neighbourhood retail coexist to meet the needs of Dubai’s expanding, high-spending resident base and international visitors.
While brick and mortar remains the format, both homegrown and international brands are accelerating the shift towards phygital retail. They are using online presence for inventory depth and customer convenience, and physical stores to drive experiences.
These brands are shaping mall strategies, raising consumer expectations, and reinforcing Dubai’s position as a leading global retail hub.
