While overall sales and rental activity trended year-on-year, certain segments, especially prepared sales, continued to show resilience, supported by changes in consumer behavior, strong growth in well-earned goods.
The Dubai sector recorded approximately 500 transactions in the first half of 2025, with a total value of AED 1.4 billion. However, these figures marked a year-on-year decrease of 17.3 percent in volume and 1.8 percent in value, mainly due to a significant reduction in retail sales.
On the contrary, the prepared sales segment emerged as a bright spot. Sales volumes in this category increased by 13.2 percent, and prices were increased by an impressive 40.1 percent. This shift reflects investors and an overabundance of finished goods, generating revenue amid a booming retail market and the emergence of startup rental power.
Rental of stores
On the rental side, Dubai’s rental market experienced a mixed trajectory. While rental contracts increased compared to the second half of 2024, they still posted a decrease compared to the same period last year. This was due to a decrease in new hires, amid limited availability of space for high quality properties.
The renovation work, however, received a significant boost. Contract renewals increased by 37.8 percent from the second half of 2024 and 1.9 percent from H1 2024 to H1 2024, as employers chose to extend their difficult agreements. This behavior of workers shows awareness in an environment where the tax is rising and the main selling point is always scarce.
Real estate taxes in Dubai have continued to rise, recording a city-wide increase of 8.3 percent over the past 12 months. However, growing up was a special place.
Prime retail locations, such as malls, high-end shopping malls, and tourist-heavy areas, benefit the most. Their strong depreciation and high sales performance allowed homeowners to secure premium prices. Meanwhile, tenants in low-lying areas or secondary areas show more resistance to leveling mountains. Many weak demand situations have negotiated excellent lease terms or incentives.
This deviation is true for the importance of location and access to consumers in determining the performance that is employed.
Warehouse Market
Dubai’s last sector of Dubai remained the standout actor in H1 2025, supported by receiving demand from all incoming and existing employers. The city recorded about 8,600 Wartehouse Rentaction in the period – An increase of 27.8 percent from H2 2024 and a 59.9 percent increase from year to year.
This investment in the project is limited by Dubai’s ongoing role as a planned logistics and distribution hub for the region. Strong fundamentals, including a booming e-commerce market and strong trading activity, have kept prices high in industrial areas.
Warehouse tax was up 14.1 percent over the past 12 months, although performance varied by location. Centers with strong connections to important transportation routes, proximity to ports and airports, and modern specifications saw the highest growth – ranging between 10 percent and 20 percent. On the other hand, older or less expensive items have marked a moderate increase, which is often driven by spillover demand when premium items are not available or exceed the budgets of employers.
With a limited range of stock available in the main areas, some residents have started options in neighboring Emirates such as Abu Dhabi and major Emirates areas, where large Logistics spaces offer compelling alternatives.
Outlook for the second half of 2025
The outlook for the Dubai Retail and Warehouse sectors remains optimistic for the second half of the year.
Relocation remains strong. Key players such as Emaar and Majid Al Fututaim have reported occupancy rates of 98 percent for their shopping malls in H1 2025, signaling the demands of tenants and stores. The sector also welcomed new deliveries with the opening of Nad Al Sheba Mall (500,000 sq. Ft. Ft. Ft.
Retail demand is expected to remain strong, supported by population growth and increasing tourist arrivals. However, the market is expected to remain landlord driven, with rental trends continuing to vary by location. High Traffic areas will maintain upward pressure on activity, while secondary markets may experience price pressure or consolidation.
There is also a change in the shopping area towards the test areas. Emerging areas such as Al Marmeom, Al Khawaneej, and Alserkal Avenue define what Dubai is all about, places to take the streets that offer unique culture, cuisine, and social experiences that are different from commercial ones. As Sinaj Ahmed, director and Head of Strategy and Consulting, says, “Looking at Dubai’s next shopping advantage is creating reasons for people to cross over, not depending on the number of people nearby.”
In the time of the telephone ahead, the foundations remain strong. With e-commerce expected to continue to expand and international brands expanding their regional footprint, the need for modern, well-located warehouses will likely remain high. Also, rental growth can continue, especially in areas with strong infrastructure and transportation links.
As Dubai continues to emerge as a global manufacturing and retail hub, both sectors are poised for continued, but selective growth. Investors, employers, and developers will need to adapt to changing consumer patterns, operating costs, and continued pressure on quality and profitability.
