The document summarizes a report by Ken Research on the outlook for the retail real estate market in Riyadh, Saudi Arabia. The report predicts robust growth in retail supply and demand in Riyadh over the next few years due to increasing household spending on retail. However, the completion of several new major shopping malls will lead to oversupply and downward pressure on rental rates, resulting in a more cautious outlook. The retail sector in Riyadh has transformed from small shops to large shopping malls hosting international brands, driven by high incomes and government initiatives to diversify the economy.
Shopping Malls in Saudi Arabia | Shopping Centres in Riyadh | Ksa Retail Real Estate Market | Ken Research
1. Oversupply and Downward Stress on Rental Rates
to Trigger Cautions Outlook in Riyadh Retail Real
Estate Market: Ken Research
2. 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.
3. 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.
4. 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.
5. 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
6. For further reading click on the link below:
https://www.kenresearch.com/manufacturing-and-
construction/real-estate/riyadh-retail-real-estate-market/122993-
97.html
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