Current and Future Supply and Demand Assessment
The Retail Market In Riyadh has witnessed oversupply of retail space during 2013-2018. The retail supply has escalated at a CAGR of ~% from 2013 to 2018 owing to government implementing several key initiatives such as allowance of ~% FDI in retail sector and lifting ban from cinemas. The demand has although declined from last year primarily due to implementation of VAT by the government. There has been oversupply in terms of retail units within the country due to a deceleration in economic growth triggered by the fall in oil prices.
In future, with implementation of Saudization policy by the government, increase in number of cinemas and other factors, it is anticipated that the supply-demand gap will decline in the retail market in Riyadh. It is anticipated that that the demand of retail space will increase to ~sqm in 2023 from ~sqm in 2018 owing to multiple reforms by the government. Some of these reforms include allowance of ~% FDI in retail sector, lifting of ban from cinemas and implementation of Saudization. These reforms over the long term aim at overcoming the multiple obstacles that are being faced by the retail sector such as the decline in the rental rates and the oversupply situation. Emergence of international brands has been gaining popularity in the retail market. Some of the key expected upcoming retail projects in the KSA include Cordoba Boulevard, Al Diriyah Festival City Mall, City Center Ishbiliyah, and Mall of Saudi.
Competitive Analysis
Over the past few years, the landscape of Riyadh’s retail sector has transformed from a conventional market place comprising unorganized independent stores and shops to organized large-scale shopping malls and hypermarkets that house the largest global brands. The retail sector in Riyadh is now highly competitive. Given the fragmented nature of Riyadh’s retail sector and rising popularity of organized retail, consolidation is likely with larger players growing inorganically to capture market share. These players keep innovating on strategies like product differentiation, price-related offers along with placing the mall distinctively in the minds of patrons through various entertainment packages like amusement parks and food courts.
Market Insight and Performance
After witnessing a growth for the last four years, the demand for retail space in Riyadh witnessed a decline in the year 2018 owing primarily to introduction of VAT coupled with other factors such as rising e-commerce retail. Among different mall categories, super-regional malls had the highest occupancy rate in 2018, followed by regional malls and community centers. Average rentals rates have also decline over the last year reflecting the decline in demand.
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
Retail Market In Riyadh
Riyadh Retail Market Growth
Riyadh Retail Real Estate Market
Riyadh Retail Market Forecast
Market Retailers in Riyadh
Retail Market Projects in Riyadh
Retail Development in Riyadh
Retail Overview in GCC
Number of Restaurants in Riyadh
Saudi Arabia Retail Market Analysis
Current Community Center Mall Supply Riyadh
Current Regional Mall Demand Riyadh
Retail Supply Demand Gap Analysis Riyadh
Rentals Outside Malls in Southern Riyadh
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