Dubai Retail Unit Sales Rise 145% to $1 Billion in H1 2026
Dubai recorded 841 sales of retail units worth approximately $1 billion (AED 3.67 billion) in the first half of 2026, as strong off-plan activity drove a sharp increase in investment in shops across the emirate, according to an Al Masdar Al Aqaari analysis of Dubai Land Department data.
The figure compares with 603 retail-unit sales valued at around $409 million (AED 1.5 billion) in the same period of 2025. Transaction volumes rose 39.5% year on year, while total sales value increased by 145%.
Off-plan retail units drive growth
Off-plan retail units accounted for the largest share of activity, with 499 sales worth $708 million (AED 2.6 billion), compared with 255 transactions valued at $212 million (AED 778 million) a year earlier.
The number of off-plan retail-unit sales increased by approximately 96%, while their value rose 234% year on year.
Jumeirah Village Circle recorded the highest number of off-plan retail-unit sales during the first six months of the year, with 62 transactions worth $78 million (AED 285.6 million). Majan ranked second by volume, with 50 sales valued at approximately $25 million (AED 91 million).
Jebel Ali First led the off-plan market by sales value, recording 38 transactions worth $90 million (AED 330.1 million). All of these sales were registered at Sobha Central.
Ready retail units
Sales of ready retail units reached 342 transactions worth $300 million (AED 1.1 billion), compared with 348 sales valued at $195 million (AED 716 million) in the first half of 2025.
While transaction volumes declined marginally, the value of ready retail-unit sales rose by approximately 54% year on year.
International City 1 recorded the highest number of ready retail-unit sales during the period, with 74 transactions worth a combined $14 million (AED 50.7 million).
Business Bay led the ready retail-unit market by value, recording 46 sales worth $51 million (AED 187 million). Meydan One followed with 34 transactions valued at $32 million (AED 118.6 million), while Motor City registered six sales worth $25 million (AED 93.2 million).
Shop prices and rents in Dubai
Recent Property Finder data offers broader indications of retail-unit sale prices and rents across Dubai during the first half of 2026.
The average sale price of shops in Jumeirah Village Circle rose to $2.18 million (AED 8 million), from $2.14 million (AED 7.87 million) in the corresponding period of 2025. In Meydan, the average increased to $1.44 million (AED 5.3 million), compared with $1.42 million (AED 5.2 million) a year earlier.
On the leasing side, Deira recorded the largest increase among the locations covered by Property Finder, with average annual rents for retail units rising 61.5% to $175,000 (AED 643,855).
Average annual retail-unit rents in Jumeirah Village Circle increased by 33.4% to $139,000 (AED 511,536), while Arjan recorded a 19.3% rise to $115,000 (AED 422,612).
By contrast, average annual rents in Meydan declined by 2.4% to approximately $60,000 (AED 219,578), while International City recorded an 11.4% fall to around $20,000 (AED 74,689).
VAT and corporate tax considerations
The sale or lease of commercial retail units in the UAE is generally subject to VAT at the standard rate of 5%. UAE-resident businesses must register for VAT when the value of their taxable supplies and imports exceeds $102,000 (AED 375,000) over the previous 12 months, or is expected to exceed that threshold within the next 30 days.
For corporate tax purposes, income earned by a natural person from the sale or leasing of a retail unit held as a real estate investment is generally outside the scope of corporate tax, regardless of the amount earned, provided the activity is not conducted — and is not required to be conducted — through a business license. The treatment may differ if the unit is owned through a company or the income arises from a licensed business activity.
What the growth means for investors
The rise in retail-unit sales, particularly in the off-plan segment, points to growing investor interest in consumer-facing premises within new and expanding residential communities.
As new homes are handed over and local populations increase, demand can grow for supermarkets, restaurants, cafés, pharmacies and personal-service businesses. Well-located shops may therefore benefit from recurring rental demand and a stronger local customer base.
However, sales activity alone does not determine investment quality. Buyers should assess actual and projected population density, handover timelines, competing supply, permitted uses, service charges, vacancy risk, achievable rents and resale prospects before committing to a purchase.
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