The Dubai retail market in Q3 2025 is undergoing a measured correction, influenced by changing tenant demand patterns, a more selective investment climate, and increasing supply diversification across key districts. The value of off-plan sales value increased 37.8% QoQ, while ready sales value dipped slightly by 2%, though still up strongly year-on-year. Sales volumes showed even greater momentum, with off-plan transactions surging 92% QoQ and ready volumes rising 2.25%. This was reinforced by strong pricing, where off-plan assets averaged AED 3,063 per sq.ft, and ready retail averaged AED 2,104 per sq.ft, signalling resilient appetite for both future and operational inventory.
On the rental side, the market softened modestly as renewed leases averaged AED 278.7 per sq.ft, maintaining a premium over new leases at AED 263.5 per sq.ft, both edging down quarter-on-quarter as tenants reassessed space requirements. Community-level dynamics remained diverse, with Palm Jumeirah, Dubai Marina, and Business Bay sustaining higher rental brackets, while International City, Discovery Gardens, and Dubai Silicon Oasis continued to provide more affordable retail options, supporting strong demand from neighbourhood-focused operators. Overall, the quarter highlights a market transitioning toward balanced, sustainable growth across both sales and rental segments.
