The latest Cushman & Wakefield Core Dubai Annual Retail Market Update 2025/2026 shows a sector advancing on several fronts at once: luxury performance, community-led demand, and destination-focused retail within major mixed-use districts. That breadth is unusual, and it is becoming a defining feature of the city’s retail landscape.
Record tourism inflows, sustained population growth, and an expanding development pipeline are reinforcing the city’s position as a global retail hub, particularly as the 31st Dubai Shopping Festival begins against exceptionally strong fundamentals.
Prime Retail: Stronger Positioning, Higher Rents
Dubai continues to outperform global peers at the top end of the market. According to Cushman & Wakefield’s 35th Main Streets of The World report, Fashion Avenue in Dubai Mall now ranks 11th worldwide for retail rents, with a 9% year-on-year increase, placing Dubai among the top five global cities for rental growth.
Super-regional malls remain at 95–99% occupancy, supported by long waitlists and consistent tenant demand . Dubai Mall’s visitor numbers - over 111 million in 2024, with expectations of surpassing this in 2025 - continue to anchor the city’s premium retail performance.
Planned extensions to Dubai Mall and Mall of the Emirates signal continued confidence in the luxury, F&B and experience-led retail segments.
Neighbourhood Retail: Consistent, Resident-Led Growth
Alongside headline destinations, community retail is showing some of the strongest leasing performance in the market. Centres in Al Barsha, Motor City and Nad Al Sheba are reaching full occupancy within a year of completion, driven by resident spending, convenience-led demand, and curated retail mixes anchored by supermarkets, clinics, fitness operators and home-grown F&B brands.
Developers are responding by integrating 80,000-140,000 sqft of community retail into new mixed-use masterplans. These assets trade on proximity and repeat visitation rather than tourism cycles, and their stability is drawing growing attention from both developers and tenants.
Dubai’s population outlook - forecast to reach 5.8 million by 2040 - continues to support this segment’s long-term fundamentals.
Destination-Led and Mixed-Use Retail: Strong Demand Across Key Districts
Prime mixed-use districts - Downtown Dubai, Palm Jumeirah, Dubai Marina and DIFC - are recording record rents for both licensed and non-licensed units, alongside consistently high occupancy . These areas benefit from concentrated residential density, tourism flows, design-led environments and a strong F&B presence, resulting in longer dwell times and sustained demand.
This mid-tier of the market is expanding quickly, supported by newer precincts with strong experiential components.
A Pipeline That Reflects Scale and Specialisation
Several major developments will shape supply over the coming years:
- Al Khail Avenue (2026)
- Dubai Expo Mall (2027)
- Dubai Square, an AED 180 billion retail and lifestyle landmark that is expected to lead mid-term supply
The pipeline is weighted toward differentiated formats: extensions of existing super-regional malls, new destination experiences, and community centres in emerging neighbourhoods.
The Role of Phygital Retail in Dubai’s Next Cycle
The report highlights the growing importance of hybrid retail strategies. Brands are using online channels for inventory depth and convenience, while physical stores increasingly function as experience, engagement and brand-building environments.
This shift is influencing mall strategies, tenant mix decisions, and leasing models. It is also raising consumer expectations, particularly as both homegrown and international brands invest in digital layers and more immersive physical spaces.
2026 Outlook: A Market Supported by Multiple Demand Drivers
The outlook for 2026 points to continued strength in prime rents and healthy absorption in suburban locations, supported by population growth and ongoing infrastructure expansion. The long-term direction is toward a balanced retail ecosystem, where super-regional malls, destination-led mixed-use districts and neighbourhood centres each capture distinct segments of Dubai’s growing resident and visitor base.
In a global context where retail performance is often uneven, Dubai stands out for sustained demand across formats and price points. That multiplicity - not a single trend - is shaping the next chapter of the city’s retail market.
