Dubai, UAE – Dubai’s retail real estate sector has hit a new quarterly record, with AED1.1 billion worth of sales across 400 transactions, reflecting strong, sustained demand for retail assets across the city, according to insight from leading real estate advisory group and property consultancy, Cavendish Maxwell.

It is the first time in a single quarter that retail asset sales have surpassed the AED1 billion mark, the company said.

Cavendish Maxwell’s latest report on Dubai’s retail and warehousing sector shows that retail transactions were up almost 80% in Q3 2025 compared to the previous quarter, and nearly 30% on year-on-year. Quarterly off-plan transactions more than doubled with a 133% rise compared to Q2. Year on year, they were up 65%.

Rental renewal contracts rose 6% against Q3 2024, suggesting that tenants are staying in existing locations despite rising rental costs. New contracts were down nearly a third on the previous quarter.

With occupancy rising and supply remaining tight, retail rents across Dubai were up by as much as 15% in some areas, with an average city-wide increase of 7.7%. The highest rises were in Jumeirah Lakes Towers, Business Bay and Dubai Marina, the report shows.

Iconic destinations such as Dubai Mall continue to achieve 98% occupancy, reflecting strong footfall and robust tenant demand at the city’s key retail attractions, and highlighting the appeal of premium, experiential destinations among both UAE citizens, residents and tourists. 

In the warehousing sector, rental renewal contracts were up by nearly two thirds (62%) year-on-year, indicating that tenants are retaining existing premises rather than relocating, which has becoming increasingly challenging because of supply constraints.

Warehouse rents were up almost 17% year-on-year on average, with Jebel Ali seeing the biggest hike at 21%. Ras Al Khor, Dubai Investments Park and Dubai Industrial City and Umm Ramool also recorded higher-than-average increases, Cavendish Maxwell said.

Vidhi Shah, Director, Head of Commercial Valuation at Cavendish Maxwell, said: “Dubai’s retail and warehouse markets continue to perform strongly, supported by high demand, constrained supply and sustained investor confidence. Population growth, record tourism levels and rising occupancy continue to push up rents, which are likely to see more growth in the near to medium term.

“In the retail sector, we expect to see growth among smaller, community shopping centres that focus on daily needs and convenience, as well as ongoing investment in flagship malls, such as the AED5 billion expansion at Mall of the Emirates.

“Meanwhile, Dubai’s warehousing shows no sign of slowing down. As the city further reinforces its position as an ever-expanding regional logistics hub, tenants are prepared to absorb double digit rent increases to secure premises in a market where alternatives are limited.”

Download the full Cavendish Maxwell retail and warehousing report here.

Media contact:  Rebecca Rees at rebecca@rebecomms.com

About Cavendish Maxwell (www.cavendishmaxwell.com)

Cavendish Maxwell is one of the Middle East’s leading real estate advisory groups and property consultants, with offices in Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Kuwait City, Muscat and Riyadh. The company is a member of the Royal Institution of Chartered Surveyors (RICS) and offers the full range of property-related services, including valuation, strategic advisory, research, project and building consultancy and investment and commercial agency expertise. With a team of experienced professionals and a commitment to delivering exceptional service, Cavendish Maxwell has established itself as a trusted advisor in the regional real estate market.