UAE Retail Market Dynamics, Q2 2025

Combination of higher rents and limited availability in prime locations has pressed new market entrants to revise preferences and seek opportunities in secondary locations.

Demand for local concepts remained strong, focusing on casual and upper-casual dinning options. Traditional fast-food concepts have noted a decline in popularity as consumer preferences evolve.

E-commerce brands are expanding into physical stores that serve dual purposes; showrooms where customers can experience products hands-on, and micro-fulfilment centres that enable fast local deliveries and pickup options. 

There is strong demand for retail assets in residential communities, with occupiers particularly focused on convenience-centred support retail for daily needs. Premium destinations like Saadiyat, Al Maryah and Yas Islands that continue to attract international brands and F&B concepts.