Dubai’s retail property sector witnessed a remarkable transformation during the first half of 2026, with transaction values soaring by 177% year-on-year to reach Dh3.8 billion. According to data from Cavendish Maxwell, this surge was fueled by an appetite for off-plan assets, which dominated the landscape by accounting for nearly 70% of total sales volume. Key neighborhoods like Jumeirah Village Circle, Majan, and Dubai South emerged as primary hotspots for investors, while the ready-property market saw significant interest in areas such as International City and Business Bay.

Despite this robust momentum, the market showed signs of cooling as it moved toward the mid-year mark, with second-quarter sales activity dipping compared to the start of the year. The leasing sector reflected a similar trend; while average rents saw a modest annual increase of 4.5%, quarterly figures dipped slightly, and the total volume of new lease agreements fell. Industry experts suggest that businesses are becoming increasingly cautious due to rising operational costs and regional volatility. Nevertheless, flagship malls remain resilient with occupancy rates near 98%, positioning established retail destinations to weather the current phase of market selectivity as the year progresses.