Growing Presence of Hypermarket and Supermarket and Relaxation in Investment Regulations has Supported the Riyadh Retail Market Growth: Ken Research

“Retail development trends over the past few years in Riyadh indicates that the capital city is growing towards the Central areas, where the retail projects have the highest rental prices and experience lesser vacancy rates.”

Research Analysts at Ken Research in their latest publication “Riyadh Retail Market Outlook to 2023-Dominance of Online Shopping and Emergence of International Brands to Fuel Demand for Retail Space” believe that introducing a better tenant-mix, investment in entertainment sector, entrance of international brands, increasing awareness among consumers and implementing omni-channel strategies will contribute to an increase in the demand within Riyadh retail sector over long term.

Central Riyadh was observed as the leading attractive area for development of retail projects, as it has the benefits of high population, quality infrastructure and better connectivity with other regions in Riyadh. In addition to that, the central region is the hub for financial districts and the employees are in need for recreational spaces to relax. The international brands are opening their stores within the central region thus indicating a strong demand for retail spaces. The state budget of FY’2018 declared an allocation for public spending and amounted to over SAR 1.1 trillion. The government has recently introduced reforms including allowance of 100.0% FDI in retail sector, implementation of Saudization policy and lifting of ban from cinemas which are collectively driving the demand in the retail sector.

Super-regional malls have the highest occupancy among the different mall categories followed by regional and community center malls. Majority of the Riyadh’s housing supply is being delivered by mid-scale and small-scale developers whereas; professional developers are having a very limited presence. The reason behind flourishing super-regional malls is a better tenant-mix with consumers getting all the recognized brands under one roof. The rental rates have declined from the last year owing to the level of upcoming supply and increased competition.

Along with increase in disposable income, the retail spending among Saudi consumers has witnessed a growth of 6.0% over the past five years. Increasing inbound tourism and growth in population are providing the boost to the development in the retail real estate sector. Moreover, increasing affordability among people of Riyadh have been forcing developers to move away from the traditional bakalas to supermarkets and hypermarkets.

Growing Presence of Hypermarket and Supermarket: Hypermarket and supermarket chains continue to expand in Saudi Arabia. The total number of supermarkets and hypermarkets in Saudi Arabia in 2016 were estimated at 1,255 stores, accounting for approximately 2.9% of retail outlets. A major trend witnessed in recent years is the shift in location of hypermarkets and supermarkets from stand-alone stores towards developed regional and super-regional malls due to the increase annual footfall across these retail formats.

Relaxation in Investment Regulations: Given the oversupply of retail space, especially in Riyadh, the government has eased investment regulation in the retail sector to boost inflow of international brands into the country. In June 2016, the Saudi government announced that it will allow foreign companies to wholly own companies in the Saudi retail and wholesale trade sector (allowance of 100.0% FDI). Foreign companies were previously required to partner with Saudi investors to establish retail or wholesale outlets, and may still find it advantageous to do so.

Key Segments Covered:-

Type of Malls

Super-Regional Malls

Regional Malls

Community Center Malls

Key Target Audience:-

Retail Project Developers

Third Party Real Estate Companies

Independent Architects

Government Associations

Government Agencies

Independent Investors

Retail Real Estate Consulting Companies

Time Period Captured in the Report:-

Historical Period – 2013-2018

Forecast Period – 2019-2023

Riyadh Retail Malls Case Studies Covered:-

Pure Mall

Al Oruba Square

Canary Center

Localizer Mall

Granada Center

Centria Mall

Keywords:-

Riyadh Retail Market

Retail Industry In Riyadh

Riyadh Retail Market Supply

Market Retailers in Riyadh

Retail Development in Riyadh

Retail Overview in GCC

Retail Supply and Demand Riyadh

Future Regional Mall Supply Riyadh

Riyadh Retail Market Insight

Riyadh Retail Rental Prices in Malls

Food Retail Spending in Riyadh

Store Based Retailing in Riyadh

Future Retail Projects in Riyadh

Major Retail Projects in Riyadh

Pure Mall Retail Market Riyadh

Localizer Mall Retail Market Riyadh

For more information on the research report, refer to below link:-

Riyadh Retail Market

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