Dubai Retail Property Sales Surge 177% to AED3.8bn in H1

Sep 21, 2026
News
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The retail real estate segment in Dubai observed a notable jump in transaction value in the first half of 2026, up to AED 3.8 billion ($1.03 billion), an increase of 177% compared to last year. Along with the growth of transactions volume by 56%, the vast majority of the transactions were made related to off-plan units that made up almost 70% of the sales volume. Those numbers prove that Dubai real estate is becoming stronger with each passing day. It also shows that the activities in Dubai properties go beyond just residential transactions.

DubaiRetailPropertySalesSurge177PercentInH1

Retail Sales Surpass AED3.8 Billion

According to Cavendish Maxwell, the total retail property sales were 850 during the first half of 2026, which is an increase in comparison to the previous year's same period. The average transaction value increased by 77% from that of last year to AED4.4 million ($1.2 million). The growth of average deal value of property investment in Dubai is the major change.

The rest of the Dubai real estate market also witnessed retail sector improvement, but Cavendish Maxwell warned that there is a time gap between off-plan transactions and their registered dates.

The key indicators of first half of 2026 include:

Total sales value: AED3.8 billion
Annual sales value growth: 177%
Number of transactions: 850
Growth in transactions number: 56%
Average transaction value: AED4.4 million
Off-plan share in the total sales value: around 70%

JVC Leads the Off-Plan Segment

Off-plan activity has increased significantly on a year-on-year basis during the first half of this year and has become one of the defining characteristics of retail in the UAE. Off-plan deals made up about 60% of all retail real estate deals and contributed closer to 70% of total retail sales volume. Among the most profitable off plan projects in Dubai this year was Jumeirah Village Circle, which accounted for more than 12% of all off-plan retail transactions. Aside from luxury properties for sale, off-plan retail projects in Dubai are attractive to commercial buyers, which prefer only the best locations with huge development activity.

The leading off-plan locations included:

Jumeirah Village Circle – over 12%
Majan – 10%
Dubai South – 9.8%
Dubai Motor City – 8.6%
Sobha Central at Jebel Ali First – 7.6%

These five areas constitute almost 50% of the total off-plan retail transactions.

Established Locations for Ready Retail Activity Centres

There was a different geographical pattern in ready retail transactions, with established areas taking the largest share of transactions. The transactions were highest in Dubai International City at 22%, Business Bay at 13.4%, followed by Azizi Riviera contributing 10% to ready retail transactions, Jumeirah Lakes Towers at 7.4%, and Jumeirah Village Circle at 6.8%.

The statistics indicate increasing interest in commercial property in Dubai due to an emphasis of investors on established retail properties. For real estate investment Dubai, the difference between ready and off-plan property should always be acknowledged while analyzing the trends in transactions.

Retail Details Decline in Second Quarter

Although the reported figures for the first half of the year were positive, the trends slowed down during the second quarter. The retail property transactions plummeted by 25% during Q2 compared to the previous quarter. But despite this, the figures for the quarter were still 61% above those for Q2 of 2025, indicating that the drop in the quarter did not nullify the annual growth. In view of the facts at best real estate in Dubai, it is necessary to state that quarterly trends should be kept apart from annual ones. Investors interested in properties for rent in Dubai should understand that retail transactions and rental deals are different.

Retail Rentals Up While New Agreements Down

The retail rent figures of Dubai are reported to have increased almost by 4.5% month-on-month during the first half of the year based on the information provided by Cavendish Maxwell. However, on a quarterly basis there was a slight decrease of almost 1% in rents which made it clear that rental growth was becoming slower. The number of retail rental agreements that were closed during the first half was around 33,000. Whereas, renewals saw a growth of approximately 1.5% as compared to the same time last year, and the number of agreements as a whole shrank by almost 6%.

The decrease is attributed mainly to new agreements:

Number of new contracts went down by 26%
Number of renewed contracts increased by 1.5%
Total number of contracts went down by almost 6%
New contracts accounted for a major part of overall decrease

For any real estate company in Dubai, it is a clear indication that tenants mostly prefer not to change their premises. Demand for various types of units supports the interest in retail shops for sale in Dubai.

Retail Market Enters a More Measured Phase

The first half of 2019 shows a market that has experienced a strong growth in annual sales, but has started to see signs of moderation. The changes in quarterly transactions, rent growth, and dropping figures for new contracts imply a shift in the way the market operates. There were also changes in the dynamics of activity in the market. In Q2 regional tensions had reached a peak while total retail rental contracts were at 10% lower levels compared to the same period a year ago. The market continues to provide prospects for those buying commercial properties for sale in Dubai, as evolution of retail demand goes on.

The attractiveness of the rental sphere provides investment opportunities for those looking for retail shops for rent in Dubai. Overall, the first half of the year has shown a strong annual growth along with the cautious behavior typical of the second quarter. The increase in the sales value by 177% along with the 850 transactions and approximately 70% share for off-plan represent the magnitude of activities in H1.

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