Dubai retail sales up 50% to AED 4.6bn in 2025

Sales transactions in Dubai’s retail real estate market climbed almost 50% year-on-year to AED4.6 billion in 2025, says leading real estate advisory group and property consultancy, Cavendish Maxwell.

Around 1,450 sales were secured last year – a 7.6% increase on 2025 – with the off-plan sector accounting for more than half of them. Off-plan sales transactions have surged more than 830% in the last five years, rising from 79 in 2021 to nearly 740 in 2025, according to Cavendish Maxwell’s latest insight into Dubai’s retail and warehousing sectors.

In the retail rental market, the number of lease renewals rose by 6.5% in 2025, while new leases were down 15.7%, highlighting tenant preferences to stay in existing premises because of limited new availability at prime locations. Rental costs were up an average 7.1% - and by as much as 15% in some areas, driven by growth in community retail and steady performance across large scale retail destinations.

Vidhi Shah, Director, Head of Commercial Valuation at Cavendish Maxwell, said: “Dubai’s retail sector showed sustained growth and resilience in 2025, backed by strong fundamentals including a record 19.6 million tourists and unprecedented population growth. Sales values rose sharply and off-plan purchases are now eight times as high as there were just five years ago, signalling strong long-term investor confidence in the retail market.

“With prime, high-footfall locations in short supply and rental rates on the rise, tenants are increasingly favouring renewing existing leases over moving to new premises to save costs and avoid the risk of relocating somewhere less established. Prices for renewals rose by 4% last year, whereas new contracts were, on average, 14% higher.

“Looking ahead, Dubai’s retail offering is expected to expand this year with raft of community-centric developments in the pipeline that reflect a broader shift towards localised retail that prioritises convenience and proximity over the more traditional, large-scale destination-led formats,” she added.

Neighourhood retail at Jumeirah Village Circle commanded the highest rental growth in 2025, at 15.5% higher than in 2024, while Business Bay and Palm Jumeirah saw 13.7% hikes and Downtown Dubai 13.1%. Upcoming community developments include Dubai Square, Ghaf Woods Mall, Sobha Mall, Liwan Mall, Villa Square and South Bay Mall.