Dubai's retail market remained resilient during the first half of 2026, with the strongest pricing power concentrated in established, high-footfall locations.
According to reporting by Emirates 24|7, data from Engel & Völkers Middle East showed average retail rents rising 5.9% year on year, from AED 238 to AED 252 per square foot.
Renewals reveal the strength of established locations
New lease rents reportedly increased 2.2% to AED 234 per square foot, while renewal rents rose 6.6% to AED 257. The difference suggests tenants are prepared to pay more to retain locations with proven visibility, footfall and customer demand.
Prime does not mean uniform
Reported rents varied materially by district. Downtown Dubai averaged approximately AED 817 per square foot, while Bluewaters Island averaged AED 369. Location, unit visibility, access, customer demographics and surrounding residential density all affect the commercial proposition.
What private investors should take from it
The lesson is not that every Dubai retail asset will outperform. It is that scarce, well-positioned space can preserve pricing power when demand is supported by population growth, tourism and consumer spending. Any acquisition still requires unit-level assessment of lease terms, tenant covenant, service charges, vacancy risk and resale liquidity.