Dubai’s warehousing sector benefits from the Emirate’s position as a regional trade hub
Sales values in Dubai’s retail real estate market surged 171% year-on-year to AED 2.1bn in Q1 2026, with off-plan transaction values up 225%, says leading real estate advisory group and property consultancy, Cavendish Maxwell.
Around 485 retail sales transactions were secured in Q1, up nearly 52% on the same period last year, with investors paying an average AED 4.3mn for their property – a price rise of nearly 80% year-on-year.
Off-plan retail sales generated AED 1.3bn, over 60% of total sales values – from January to March, as the number of transactions rose 75% to 254, according to Cavendish Maxwell’s latest analysis of Dubai’s retail and warehousing sectors.
Sales volumes
Sales volumes reached 139 in January, rose to 196 in February and moderated to 150 in March, with the slowdown driven by reduced ready-market activity which was down 36% compared to March 2025. However, the off-plan segment continued to strengthen with a 195% hike in sales from March last year.
“Our research suggests that community, convenience-led retail assets remained particularly resilient, and we expect this trend to continue. Meanwhile, tourism-linked destinations may face a more challenging environment. As a result, occupiers are likely to remain selective, choosing locations in established catchment areas, with strong footfall,” explained Vidhi Shah, Director, Head of Commercial Valuation, Cavendish Maxwell.
Warehousing sector
Dubai’s warehousing sector continues to benefit from the emirate’s position as a regional trade and distribution hub, alongside ongoing investment in logistics and infrastructure, with 5,800 leasing contracts recorded in Q1.
As with the retail sector, renewals outnumbered new contracts by a huge margin, accounting for nearly 84% of all leases and increasing 15% year-on-year, according to the Cavendish Maxwell study.
Q1 saw a 7.3% annual decline in all leases, with new contracts dropping by half, reflecting a reduction in expansion by existing occupiers and a softening among new tenants.
Strong performers
Average rental costs in Q1 were more than 16% up on the same period last year – and almost 21% up in Jebel Ali. Other strong performers were Dubai Industrial City (18%), Dubai Investments Park (nearly 17%) and Ras Al Khor (16.3%).
“Dubai’s warehousing sector continued to reflect stable structural dynamics in Q1. Rental rates rose in all areas–the result of limited availability in key locations – and demand for well-positioned space at established industrial hubs is expected to continue,” added Vidhi.
