The increasing household expenditure on retail outlets, easing government regulation on FDI in the retail sector and lack of recreational activities coupled with annual shopping festivals will have a positive impact on Riyadh’s Retail Real Estate Market.
The report titled “Riyadh Retail Real Estate Market to 2021- Oversupply and Downward Stress on Rental Rates to Trigger Cautions Outlook” by Ken Research suggests a robust CAGR of 17.2% and 14.8% in terms of retail supply and retail demand in Riyadh, respectively. The completion of major super-regional and regional malls including KAFD, ITCC, Jardin Mall, Mall or Arabia and Al Diriyah Festival Mall will boost retail supply in the coming years.
The evolution of the retail sector has transformed the Kingdom’s landscape from small and unorganized retail outlets to the development of large scale shopping malls with international brands, entertainment zones, theme parks and world class hypermarkets and supermarkets. Majority of the kingdom’s retail outlets, especially in Riyadh and Jeddah; are spread across super regional and regional malls. These formats have replaced traditional line stores and community shopping centers. High disposable income and government initiatives to diversify the economy and encourage foreign investment and ownership have led cities such as Riyadh and Jeddah to become the centre of attraction for international luxury brands.
The retail sector in Riyadh has witnessed robust performance during the review period despite the steady increase in gross leasing area. The primary reason for this trend is because shopping is considered to be one of the few available recreational activities in the city, indicating that the market can support a higher GLA per capita in the coming years.
The total retail supply in Riyadh inclined from 1.2 million square meters during 2012 to 1.5 million square meters of gross leasing area during 2016, registering a CAGR of 5.7% during the same period. Total occupied retail space inclined to 1.44 million square meters during 2016 from approximately 1.1 million square meters during 2012 achieving a CAGR of 7.1% during the same period.
Key Topics Covered in the Report:
Ksa Real Estate Market
Shopping Centres in Riyadh
Ksa Retail Real Estate Market
Riyadh Retail Real Estate Market
Real Estate Companies Malls Riyadh
Al Sadhan Malls in Riyadh
Riyadh Shopping Mall Market
Shopping Malls in Saudi Arabia
For further reading click on the link below:
Related Reports by Ken Research
Ankur Gupta, Head Marketing & Communications