Dubai Retail Property Sales Surge 177% To Dh3.8 Billion In H1 2026

(MENAFN- Khaleej Times) Dubai's retail real estate market recorded a sharp rise in sales activity during the first half of 2026, with transaction values jumping 177 per cent year-on-year to Dh3.8 billion, according to a new report by property consultancy Cavendish Maxwell.

The sector recorded 850 sales transactions in the six months to June, an increase of 56 per cent from the same period last year, while the average transaction value climbed 77 per cent to Dh4.4 million.

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The growth was driven largely by strong demand for off-plan retail assets, which accounted for nearly 60 per cent of transactions and almost 70 per cent of total sales values, the consultancy said.

Among off-plan locations, Jumeirah Village Circle led activity with more than 12 per cent of transactions, followed by Majan, Dubai South, Motor City and Sobha Central. Together, the five locations represented nearly half of all off-plan retail sales during the period.

In the ready-property segment, International City attracted the highest share of transactions at 22 per cent, followed by Business Bay at 13.4 per cent, Azizi Riviera at 10 per cent, Jumeirah Lakes Towers at 7.4 per cent and Jumeirah Village Circle at 6.8 per cent.

Despite the strong first-half performance, the report indicated signs of moderation in the market during the second quarter. Sales transactions between April and June were 25 per cent lower than in the first quarter, although they remained more than 60 per cent above Q2 2025 levels.

The leasing market also showed mixed trends. Average retail rents increased nearly 4.5 per cent year-on-year in H1, with gains recorded across all locations monitored by Cavendish Maxwell. However, rents edged down by just under 1 per cent on a quarterly basis, suggesting that rental growth may be beginning to slow.

More than 33,000 retail tenancy contracts were signed during the first half. While lease renewals rose 1.5 per cent year-on-year, total contracts fell by almost 6 per cent as new lease agreements declined 26 per cent.

According to Vidhi Shah, director and head of commercial valuation at Cavendish Maxwell, the figures point to changing market dynamics as businesses become more selective.

“Dubai's retail sector saw strong growth in H1, with a continued shift to the off-plan segment,” she said.“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.”

She added that occupancy at Dubai's flagship malls and community retail centres remains strong at around 98 per cent.

“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,” Shah said.

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