Dubai's real estate market is experiencing a notable divergence across its sectors, according to Chestertons Global's Q2 2026 Dubai Real Estate Market Report. The report, set for release on 12 August, highlights significant growth in industrial and retail sectors, whilst office and residential markets enter a more measured phase.
Industrial rents have surged by 23.3% year-on-year, driven by a persistent shortage of Grade A warehouse space, with logistics operators and manufacturers fuelling demand. Retail rents have also increased by 18.3%, supported by high occupancy rates in prime destination malls, buoyed by population growth and tourism.
Conversely, the office market has seen a 15.2% rise in leasing volumes, although there is a shift towards smaller office spaces as larger corporate expansion plans are delayed due to regional geopolitical uncertainties. The residential market has cooled, with buyers taking longer to make purchasing decisions, though villas and townhouses continue to outperform flats.
John Stevens, CEO of Chestertons MENA, noted, "Dubai's property market continues to demonstrate resilience, but we're now seeing a nuanced shift towards a more mature market where performance varies significantly between sectors."
Looking forward, Chestertons Global anticipates that Dubai's property market will remain robust, supported by ongoing population growth, international investment, and economic diversification. However, the report emphasises that future success will depend on careful asset selection, as individual asset performance becomes increasingly crucial in meeting evolving occupier and investor demands
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