DUBAI SQUARE Retail Leasing Briefing

03 · The commercial case

Retail Opportunity

The market Dubai Square is opening into, where a brand is likely to fit, and the risks a serious tenant should price before signing anything.

Market fundamentals

Dubai retail is supply-constrained at the top end

The case for a new super-regional centre rests less on the building than on the market absorbing it. On the published evidence, Dubai’s prime retail is running hot: super-regional malls sit at near-full occupancy, prime rents are rising at a rate that puts Dubai in the global top five, and the visitor base has set a record three years running.

Intl. visitors 2025

19.59M

Record year, +5% on 2024

Hotel occupancy

80.7%

Up from 78.2% in 2024

Average daily rate

AED 579

+8% year on year

Prime retail rents

+9%

Year-on-year growth

Avg. length of stay

3.7 nights

44.85M occupied room nights

Sources: Dubai Department of Economy and Tourism (via Dubai Media Office, Feb 2026); Cushman & Wakefield Core, Dubai Annual Retail Market Update 2025/2026.

Where the shoppers come from

A genuinely international basket

No single source market dominates Dubai’s visitor mix, which is why merchandising here rarely translates directly from a European or Asian home market. Western Europe leads at roughly a fifth of arrivals, with the GCC, the CIS and Eastern Europe, and South Asia each contributing around 15%.

Dubai international overnight visitors by source market, 2025

The four largest regional sources of Dubai’s record 19.59 million international overnight visitors. Millions of visitors.

Western Europe21% of total
4.10M
GCC15% of total
2.99M
CIS & Eastern Europe15% of total
2.89M
South Asia15% of total
2.89M

Source: Dubai Department of Economy and Tourism, via Dubai Media Office, February 2026. Remaining share is distributed across the Americas, MENA, North East & South East Asia, Africa and Australasia.

View as table
SchemeVisitors
Western Europe4.10M
GCC2.99M
CIS & Eastern Europe2.89M
South Asia2.89M

What this means for range planning. Four distinct regional customers at comparable weight, plus a resident population that is itself majority expatriate. Size curves, seasonality, modest-wear requirements, price architecture and language on packaging all need to work for all of them at once — and Dubai Square’s planned Chinatown district adds a fifth cohort with its own expectations.

Category fit

Where different operators are likely to land

The developer has not published a leasing plan. What follows is an assessment of how each category is positioned given the announced anchors and format — useful for framing a first conversation, not a substitute for one.

CategoryCase at Dubai SquareWhat to press on
Luxury & premium fashion Airport proximity plus 24 on-site hotels and a high-spend international mix is the classic luxury precondition. But Dubai’s luxury gravity currently sits in Fashion Avenue at The Dubai Mall, ranked among the most expensive retail locations globally. Which brands anchor the luxury zone, and what the incentive package looks like for an early commitment before that is settled.
Mainstream fashion & footwear The volume of GLA implies substantial mid-market space, and the resident catchment supports repeat trade rather than tourist-only spend. Floorplate depth and frontage width by level; whether level three carries a rent discount that offsets weaker natural footfall.
Food & beverage The 2018 plan set out fine dining, cafes, food courts, street vendors, organic markets and live cooking stations, supported by late-trading entertainment anchors. On any version of the scheme, F&B is the strongest structural fit. Extract and grease-duct provision, terrace rights, delivery-kitchen policy, and trading-hours obligations against the arena programme.
Entertainment & leisure operators The waterpark, ice attraction, cineplex, VR and arena were all landlord-led in the 2018 plan, and none has been reconfirmed. Third-party leisure operators would be complementing rather than anchoring — if they survive into the built scheme at all. Exclusivity radius, whether landlord attractions compete directly with your format, and revenue-share versus base-rent structures.
Electronics & technology A centre marketed on AI, RFID and smart retail is a natural showcase environment, and the specification is announced as including a technology category. Power and data provision, demo-space allowances, and how the landlord’s app surfaces your inventory versus a competitor’s.
Homeware & furnishing Announced as a category. Thousands of residential handovers across the district create a fitting-out cycle that is unusually well matched to the opening window. Access for large-format delivery, service yard allocation, and whether the drive-through spine can support kerbside collection of bulky goods.
Grocery & convenience A supermarket category is announced. In a district built around the mall, the food anchor carries the daily-visit habit the rest of the centre benefits from. Whether the anchor slot is already allocated, and the catchment population committed by phase rather than at full build-out.

The other side of the ledger

Risks worth pricing in

A briefing that only sets out the upside is a brochure. These are the factors most likely to hurt a tenant who commits early without protection.

Delivery risk

Dubai Square was first announced in 2018, went quiet for years, and was re-stated in 2024 and 2025. Published opening dates range across 2028 and early 2029, and none is a developer-confirmed trading date. Fit-out crews, stock and staff all have to be committed months ahead of a date that can move.

Catchment ramp-up

The resident population, hotel keys and Metro connection arrive on separate schedules, with the Blue Line not opening until September 2029. Year-one footfall will not resemble stabilised footfall, and a rent based on the latter will hurt.

Cannibalisation

For a brand already trading at The Dubai Mall or Dubai Hills Mall, some Dubai Square turnover is transferred rather than new. Model the net position across the portfolio, and check whether existing leases carry radius restrictions.

Competitive supply

Dubai Square is not the only scheme in the pipeline, and existing centres are expanding. The premium available to a new destination narrows as competing space is delivered around the same window.

Fit-out cost inflation

Mass simultaneous handover across 750,000 m² puts every tenant into the same contractor market at the same moment. Fix contractor pricing early, or budget a contingency that assumes you will not.

Undefined scheme and terms

Gross leasable area, unit sizes, rents, service charge, marketing levy, turnover-rent thresholds and fit-out contributions are all unpublished, and the 2018 component plan has not been reconfirmed. Until those are on the table, no store-level model is more than a sketch.