Riyadh's retail genuine estate market is a vibrant and evolving landscape, using a huge selection of opportunities for savvy investors. Based on the detailed benchmarking report, here are some essential dynamics forming this market:
Diversity in Residential Or Commercial Property Sizes: The marketplace showcases a vast array of residential or commercial property sizes, from large-scale shopping malls like Granada Center Mall with a Gross Leasable Area (GLA) of roughly 100,000 m TWO, to smaller retail hubs like Boulevard Mall, boasting a GLA of around 8,000 m TWO. This variety deals with a broad spectrum of consumer requirements and choices.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single area however are spread throughout the city. This distribution permits a diverse investment method, targeting different demographics and socio-economic sectors.
Growth Prospects: The retail sector in Riyadh is growing, driven by elements such as increasing population, urbanization, and a shift in consumer costs routines. This growth trajectory suggests an appealing future for retail investments in the region.
Quality and Standards: The picked residential or commercial properties for the research study are noted for their high requirements and quality renters. This element is crucial as it influences foot traffic, occupant retention, and overall residential or commercial property worth.
Catchment Areas
Catchment areas are a critical element of retail property, particularly for shopping malls, as they straight influence the possible success of these residential or commercial properties. In Riyadh's retail landscape, understanding these areas is necessary for financiers.
Here's what the report reveals about catchment locations:
- Definition and Importance: A catchment location is the geographic location from which a shopping mall or retail center draws its customers. It's substantial due to the fact that it affects foot traffic, sales capacity, and eventually, the profitability of the retail residential or commercial property.
- Granada Center Mall: This shopping center stands out with its catchment location covering an exceptional 40.5% of Riyadh's population. This high portion shows its significant impact and reach within the city.
- Al Nakheel Mall: With a catchment location that incorporates 35% of the city's population, Al Nakheel Mall is another key player in Riyadh's retail landscape. Its considerable coverage demonstrates its significance as a retail location.
- Riyadh Park Mall: This shopping center has a catchment that includes 32.1% of Riyadh's population, marking it as a major tourist attraction in the city's retail sector.
- Captive Population: Looking deeper into the numbers, Granada Center Mall has the greatest share of a captive population, amounting to 23.8% of Riyadh's total population. This indicates a strong faithful customer base that mainly frequents this shopping 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 highest share of captive population of Riyadh City with 23.8%.".
Lease Rates and Occupancy Trends
In the Riyadh retail property market, understanding lease rates and tenancy patterns is essential for making informed investment choices.
- Granada Center Mall: As of August 2022, this shopping mall, being one of the biggest in Riyadh, shows a tenancy rate of 64%. It is necessary to note that some parts of the shopping center were under remodelling at the time, which might have affected this figure.
- Riyadh Park Mall: This shopping center, currently the largest in regards to Gross Leasable Area, has an impressive tenancy rate of 91.2%, suggesting high occupant retention and consistent consumer traffic.
- Riyadh Gallery Mall: With an occupancy rate of 93.3%, this shopping center stands as another essential gamer in the market, showing a strong and stable occupant base.
- Al Nakheel Mall: This residential or commercial property, important 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 provided for each shopping mall, the report suggests that all the shopping centers included follow a comparable rates structure. This harmony recommends a market requirement, which can be a critical factor for financiers when assessing the potential roi.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the second largest shopping mall in Riyadh as per the Gross Leasable Area." [Granada Center Mall]
- "Another large shopping mall in Riyadh. The occupancy is very great 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 investment in Riyadh's dynamic market. Here's a thorough appearance at its qualities, making it a noteworthy case research study:
- Location and Area: Situated on Alamir Mohamed Ibn Saad Ibn Abdelaziz Road, Al Aqeek, Al Shimal, Riyadh Park Mall is tactically situated. It boasts an acreage of 139,118 m TWO, providing ample space for a varied variety of retail and home entertainment options.
- Size and Structure: The shopping center incorporates a total built-up location of 241,220 m ² and a Gross Leasable Area (GLA) of 105,290 m TWO. This considerable size is dispersed throughout 3 floors, offering a huge range of leasing choices.
- Leasable Area Distribution: The leasable area 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 diverse mix of retail, dining, and home entertainment outlets. - Tenant Mix and Anchors: Riyadh Park Mall accommodates a significant number of anchor stores, even more improving its appeal. The diversity in its tenant mix caters to a broad spectrum of consumer choices.
- Occupancy Rates: Since August 2022, the mall had a high occupancy rate of 91.2%. This is indicative of its appeal amongst merchants and consumers alike, suggesting a constant stream of foot traffic and constant profits generation.
- Investment Appeal: Given its strategic location, large GLA, diverse tenant mix, and high occupancy rate, Riyadh Park Mall represents a robust investment chance. Its success factors work as a guide for what financiers should look for in possible retail residential or commercial property financial 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".
- "Land Area: 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 explore why it stands as a considerable case study for prospective financiers:
- Prime Location: The mall is situated in Dammam, Ash Shohda, Ar Rawdah, strategically positioned to attract a wide consumer base.
- Extensive Area: Covering a land area of 421,330 m TWO, Granada Center Mall is one of the largest in Riyadh. It has a total built-up location of 318,064 m ² and a Gross Leasable Area (GLA) of 102,080 m ²
. -Leasable Area and Structure: The shopping center's extensive leasable area is attentively distributed over two floors, boosting the shopping experience. The floor-wise circulation is as follows:. - First Floor: 60,027 m ²
. -Ground Floor: 42,052 m ²
. -Tenant Diversity: The shopping center hosts a variety of occupants, consisting of regional and international brands, which accommodates a broad market, increasing its appeal as a retail location.
- Occupancy Rate: Despite being partially under renovation, the shopping mall preserved a 64% occupancy rate since August 2022. This figure is likely to enhance post-renovation, making it an attractive prospect for future development.
- Investment Potential: Granada Center Mall's size, place, and occupant mix position it as a strong contender in Riyadh's retail market. Its large GLA and renovation strategies signal potential for value appreciation, making it an appealing choice for financiers.
Quotation from the Report:
- "Address: Granada Center Mall, Dammam, Ash Shohda, Ar Rawdah".
- "Land Area: 421,330 m TWO ".-" Total Built-up Area: 318,064 m ² ".-" Gross Leasable Area: 102,080 m TWO ".-" Occupancy (Aug 2022): 64% (some parts of the shopping mall under renovation)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, a key retail residential or commercial property in Riyadh, emerges as an intriguing case study for financiers. Here's an in-depth expedition of its features:
- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this shopping center benefits from its position in a populous and affluent area of Riyadh.
- Substantial Size and Offering: The mall covers a land location of 238,769 m two with a total built-up area of 299,448 m two and a Gross Leasable Area (GLA) of 81,322 m ². This extensive size helps with a diverse variety of retail and leisure offerings.
- Leasable Area Distribution Across Floors:. - Second Floor: 20,767 m TWO
. -First Floor: 58,463 m ²
. Ground Floor: 2,091 m TWO- This caters to various retail and leisure experiences, appealing to a large consumer base. - Tenant Diversity: Al Nakheel Mall's renter mix includes a series of local and international brands, drawing in a diverse group of shoppers and making sure constant step.
- Occupancy and Investment Potential: As of August 2022, the shopping mall reported an occupancy rate of 82.0%. This fairly high occupancy rate, integrated with its size and area, marks Al Nakheel Mall as an appealing financial investment chance in the Riyadh retail market.
- Additional Considerations: The shopping mall becomes part of the Arabian Center Group, contributing to its credibility and appeal. Its big GLA and varied renter mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.