Riyadh's retail real estate market is a vibrant and progressing landscape, offering a variety of opportunities for smart investors. Based upon the detailed benchmarking report, here are some crucial dynamics forming this market:
Diversity in Residential Or Commercial Property Sizes: The marketplace showcases a large range of residential or commercial property sizes, from massive shopping malls like Granada Center Mall with a Gross Leasable Area (GLA) of roughly 100,000 m ², to smaller retail centers like Boulevard Mall, boasting a GLA of around 8,000 m TWO. This diversity deals with a broad spectrum of consumer requirements and preferences.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single location however are spread out throughout the city. This circulation permits a different financial investment approach, targeting various demographics and socio-economic sections.
Growth Prospects: The retail sector in Riyadh is growing, driven by factors such as increasing population, urbanization, and a shift in consumer costs practices. This growth trajectory recommends a promising future for retail financial investments in the region.
Quality and Standards: The chosen residential or commercial properties for the research study are noted for their high standards and quality renters. This aspect is crucial as it affects foot traffic, tenant retention, and general residential or commercial property worth.
Catchment Areas
Catchment areas are a critical aspect of retail property, especially for malls, as they directly influence the possible success of these residential or commercial properties. In Riyadh's retail landscape, comprehending these locations is essential for investors.
Here's what the report reveals about catchment locations:
- Definition and Importance: A catchment area is the geographic location from which a mall or retail center draws its customers. It's substantial due to the fact that it impacts foot traffic, sales potential, and ultimately, the success of the retail residential or commercial property.
- Granada Center Mall: This shopping mall sticks out with its catchment area covering a remarkable 40.5% of Riyadh's population. This high portion indicates its considerable impact and reach within the city.
- Al Nakheel Mall: With a catchment location that encompasses 35% of the city's population, Al Nakheel Mall is another key gamer in Riyadh's retail landscape. Its significant coverage demonstrates its significance as a retail destination.
- Riyadh Park Mall: This shopping mall has a catchment that consists of 32.1% of Riyadh's population, marking it as a major attraction in the city's retail sector.
- Captive Population: Looking deeper into the numbers, Granada Center Mall has the highest share of a captive population, amounting to 23.8% of Riyadh's overall population. This indicates a strong faithful customer base that primarily frequents this mall over others.
Quotation from the Report:
- "The Granada Center Mall covers 40.5% of the population."
- "Al Nakheel Mall covers 35% of the population followed by Riyadh Park Mall with 32.1% coverage."
- "The Granada Center Mall has the greatest share of captive population of Riyadh City with 23.8%.".
Lease Rates and Occupancy Trends
In the Riyadh retail property market, comprehending lease rates and tenancy trends is important for making educated investment choices.
- Granada Center Mall: Since August 2022, this shopping mall, being one of the largest in Riyadh, reveals a tenancy rate of 64%. It is essential to note that some parts of the mall were under restoration at the time, which may have impacted this figure.
- Riyadh Park Mall: This shopping center, presently the biggest in terms of Gross Leasable Area, has a remarkable occupancy rate of 91.2%, indicating high occupant retention and constant consumer traffic.
- Riyadh Gallery Mall: With an occupancy rate of 93.3%, this mall stands as another crucial gamer in the market, reflecting a strong and steady renter base.
- Al Nakheel Mall: This residential or commercial property, integral to the Arabian Center Group, reported an occupancy rate of 82.0%, showcasing its robust standing in the market.
- Lease Rates: While specific figures for lease rates per m ² each year aren't offered for each shopping center, the report suggests that all the malls consisted of follow a comparable pricing structure. This harmony recommends a market requirement, which can be a vital factor for financiers when evaluating the prospective roi.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the second largest shopping center in Riyadh based on the Gross Leasable Area." [Granada Center Mall]
- "Another big mall in Riyadh. The occupancy is extremely excellent at 93.3%." [Riyadh Gallery Mall]
- "An essential residential or commercial property for the Arabian Center Group (Al Hukair Group)." [Al Nakheel Mall]
Investment Opportunities: Case Studies
Case Study 1: Riyadh Park Mall
Riyadh Park Mall stands as a shining example of a successful retail financial investment in Riyadh's dynamic market. Here's a thorough take a look at its characteristics, making it a notable case research study:
- Location and Area: Situated on Alamir Mohamed Ibn Saad Ibn Abdelaziz Road, Al Aqeek, Al Shimal, Riyadh Park Mall is strategically located. It boasts a land location of 139,118 m TWO, providing sufficient area for a diverse series of retail and entertainment options.
- Size and Structure: The mall incorporates an overall built-up location of 241,220 m ² and a Gross Leasable Area (GLA) of 105,290 m ². This considerable size is dispersed throughout three floorings, supplying a large selection of leasing alternatives.
- Leasable Area Distribution: The leasable location is divided as follows:.
- First Floor: 38,499 m ²
. -Ground Floor: 63,687 m TWO
. -Basement: 3,103 m TWO
. -This distribution permits a different mix of retail, dining, and entertainment outlets.
- Tenant Mix and Anchors: Riyadh Park Mall accommodates a significant variety of anchor shops, even more improving its appeal. The variety in its renter mix deals with a broad spectrum of consumer preferences.
- Occupancy Rates: As of August 2022, the shopping mall had a high tenancy rate of 91.2%. This is indicative of its appeal amongst sellers and consumers alike, recommending a consistent stream of foot traffic and consistent income generation.
- Investment Appeal: Given its strategic location, sizable GLA, varied tenant mix, and high tenancy rate, Riyadh Park Mall represents a robust financial investment opportunity. Its success factors work as a guide for what financiers need to search for in potential retail residential or commercial property investments in Riyadh.
Quotation from the Report:
- "Address: Parcel No 418, Riyadh Park Mall, Alamir Mohamed Ibn Saad Ibn Abdelaziz Road, Al Aqeek, Al Shimal".
- "Acreage: 139,118 m2".
- "Total Built-up Area: 241,220 m2".
- "Gross Leasable Area: 105,290 m2".
- "Occupancy (Aug 2022): 91.2%".
Case Study 2: Granada Center Mall
Granada Center Mall, a prominent retail destination in Riyadh, offers valuable insights into the city's retail realty market. Let's check out why it stands as a considerable case research study for possible financiers:
- Prime Location: The shopping mall lies in Dammam, Ash Shohda, Ar Rawdah, strategically placed to attract a wide customer base.
- Extensive Area: Covering a land location of 421,330 m TWO, Granada Center Mall is among the biggest in Riyadh. It has a total built-up area of 318,064 m ² and a Gross Leasable Area (GLA) of 102,080 m ²
. -Leasable Area and Structure: The shopping mall's comprehensive leasable area is attentively dispersed over two floorings, boosting the shopping experience. The floor-wise distribution is as follows:.
- First Floor: 60,027 m TWO
. -Ground Floor: 42,052 m ²
. -Tenant Diversity: The shopping center hosts a range of tenants, including regional and worldwide brands, which deals with a broad group, increasing its appeal as a retail location.
- Occupancy Rate: Despite being partly under restoration, the shopping center maintained a 64% occupancy rate as of August 2022. This figure is most likely to improve post-renovation, making it an appealing prospect for future development.
- Investment Potential: Granada Center Mall's size, place, and occupant mix position it as a strong competitor in Riyadh's retail market. Its large GLA and remodelling plans signal capacity for value appreciation, making it an appealing alternative for investors.
Quotation from the Report:
- "Address: Granada Center Mall, Dammam, Ash Shohda, Ar Rawdah".
- "Acreage: 421,330 m TWO ".-" Total Built-up Area: 318,064 m ² ".-" Gross Leasable Area: 102,080 m ² ".-" Occupancy (Aug 2022): 64% (some parts of the mall under restoration)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, a crucial retail residential or commercial property in Riyadh, emerges as an interesting case research study for financiers. Here's a comprehensive exploration of its features:
- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this shopping center take advantage of its position in a populated and affluent area of Riyadh.
- Substantial Size and Offering: The mall covers a land location of 238,769 m ² with a total built-up area of 299,448 m ² and a Gross Leasable Area (GLA) of 81,322 m TWO. This comprehensive size assists in a diverse variety of retail and leisure offerings.
- Leasable Area Distribution Across Floors:.
- Second Floor: 20,767 m ²
. -First Floor: 58,463 m ²
. Ground Floor: 2,091 m ²- This circulation deals with various retail and leisure experiences, attracting a large customer base.
- Tenant Diversity: Al Nakheel Mall's occupant mix includes a range of regional and worldwide brand names, bring in a varied group of buyers and guaranteeing steady tramp.
- Occupancy and Investment Potential: As of August 2022, the mall reported an occupancy rate of 82.0%. This fairly high tenancy rate, combined with its size and place, marks Al Nakheel Mall as an appealing investment chance in the Riyadh retail market.
- Additional Considerations: The shopping mall is part of the Arabian Center Group, including to its credibility and appeal. Its big GLA and diverse tenant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.
