Dubai’s retail property market posted a sharp rise in the first half of 2026, with total sales values reaching AED3.8 billion, up 177 per cent year-on-year, according to Cavendish Maxwell’s Dubai Retail and Warehousing H1 performance report.
Transaction volumes also climbed, with 850 sales recorded in the period, a 56 per cent increase on H1 2025. Off-plan activity was the primary driver: off-plan premises accounted for nearly 60% of transactions and close to 70 per cent of total sales value, with buyer activity more than doubling year-on-year.
Average transaction values reached AED4.4 million per sale, up 77 per cent on the same period last year. Cavendish Maxwell noted that the typical lag between off-plan deals and formal registration dates should be factored in when reading the figures.
Jumeirah Village Circle led off-plan activity with more than 12 per cent of transactions, followed by Majan (10 per cent ), Dubai South (9.8 per cent), Motor City (8.6 per cent) and Sobha Central (7.6 per cent).
Together, these five locations accounted for nearly half of all off-plan sales. In the ready market, International City was the top performer with 22 per cent of sales, ahead of Business Bay (13.4 per cent), Azizi Riviera (10 per cent), Jumeirah Lakes Towers (7.4 per cent) and Jumeirah Village Circle (6.8 per cent).
Sales activity eased in the second quarter, with transactions down 25 per cent on Q1. Even so, Q2 2026 volumes were more than 60 per cent above Q2 2025 levels.
On the leasing side, retail rents rose nearly 4.5 per cent year-on-year in H1, with increases recorded across all locations monitored by Cavendish Maxwell. On a quarterly basis, average rents edged down by just under 1 per cent, a signal that rental growth may be starting to slow.
Some 33,000 retail rental contracts were signed in the first half, but overall contract volumes fell by just under 6 per cent, with new contracts dropping 26 per cent.
Renewals, by contrast, rose 1.5 per cent year-on-year, suggesting tenants are holding existing space rather than committing to new premises. The trend sharpened in Q2, when total contracts fell nearly 10 per cent compared to the same quarter last year, with Cavendish Maxwell citing heightened regional tension as a contributing factor.
“Dubai’s retail sector saw strong growth in H1, with a continued shift to the off-plan segment. However, following a moderation in both sales and leasing activity in Q2 – which suggests a more cautious approach by businesses – the market has entered the second half of the year in a more selective phase, with higher operating costs, increased rents and regional uncertainty influencing new leasing and expansion decisions.
“Occupancy at Dubai’s flagship malls and some community retail hubs, is averaging around 98%. As we enter the winter events season and peak travel period, these established destinations – which have strong footfall and high tenant demand – are likely to continue to perform relatively well as wider leasing activity becomes more selective,” Vidhi Shah MRICS, Director, Head of Commercial Valuation at Cavendish Maxwell said in a statement.
