Riyadh's retail realty market is a vibrant and progressing landscape, offering a myriad of opportunities for smart investors. Based upon the extensive benchmarking report, here are some crucial dynamics shaping this market:
Diversity in Residential Or Commercial Property Sizes: The market showcases a vast array of residential or commercial property sizes, from massive malls like Granada Center Mall with a Gross Leasable Area (GLA) of roughly 100,000 m ², to smaller sized retail hubs like Boulevard Mall, boasting a GLA of around 8,000 m ². This variety deals with a broad spectrum of customer requirements and choices.
Geographical Spread: Retail residential or commercial properties in Riyadh are not concentrated in a single area but are spread out across the city. This distribution permits for a varied investment technique, targeting various demographics and socio-economic sections.
Growth Prospects: The retail sector in Riyadh is growing, driven by aspects such as increasing population, urbanization, and a shift in customer spending practices. This growth trajectory suggests a promising future for retail investments in the area.
Quality and Standards: The selected residential or commercial properties for the study are kept in mind for their high requirements and quality renters. This element is crucial as it influences foot traffic, renter retention, and total residential or commercial property value.
Catchment Areas
Catchment locations are a critical element of retail realty, particularly for shopping malls, as they straight affect the possible success of these residential or commercial properties. In Riyadh's retail landscape, understanding these areas is vital for investors.
Here's what the report reveals about catchment areas:
- Definition and Importance: A catchment area is the geographical location from which a shopping mall or retail center draws its customers. It's significant 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 mall stands apart with its catchment area covering an exceptional 40.5% of Riyadh's population. This high percentage indicates its significant impact and reach within the city.
- Al Nakheel Mall: With a catchment area that encompasses 35% of the city's population, Al Nakheel Mall is another key player in Riyadh's retail landscape. Its substantial coverage shows its importance as a retail destination.
- Riyadh Park Mall: This mall has a catchment that consists of 32.1% of Riyadh's population, marking it as a major tourist attraction in the city's retail sector.
- Captive Population: Looking much deeper into the numbers, Granada Center Mall has the greatest share of a captive population, totaling up to 23.8% of Riyadh's total population. This shows a strong loyal customer base that predominantly frequents this shopping center 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% protection."
- "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 genuine estate market, comprehending lease rates and tenancy trends is vital for making educated financial investment choices.
- Granada Center Mall: As of August 2022, this shopping center, being one of the largest in Riyadh, reveals an occupancy rate of 64%. It is necessary to note that some parts of the shopping mall were under restoration at the time, which might have impacted this figure.
- Riyadh Park Mall: This mall, presently the biggest in terms of Gross Leasable Area, has a remarkable tenancy rate of 91.2%, indicating high tenant retention and consistent consumer traffic.
- Riyadh Gallery Mall: With an occupancy rate of 93.3%, this mall stands as another key gamer in the market, showing a strong and steady tenant 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 particular figures for lease rates per m ² each year aren't offered each mall, the report suggests that all the shopping centers included follow a similar rates structure. This uniformity suggests a market requirement, which can be a crucial element for financiers when evaluating the prospective roi.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the 2nd biggest shopping center in Riyadh as per the Gross Leasable Area." [Granada Center Mall]
- "Another big mall in Riyadh. The tenancy is 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 an effective retail investment in Riyadh's dynamic market. Here's an extensive look 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 strategically situated. It boasts an acreage of 139,118 m ², offering adequate space for a varied variety of retail and home entertainment alternatives.
- Size and Structure: The shopping center includes a total built-up area of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m ². This significant size is dispersed throughout three floorings, offering a huge array of leasing choices.
- Leasable Area Distribution: The leasable area is divided as follows:.
- First Floor: 38,499 m TWO
. -Ground Floor: 63,687 m ²
. -Basement: 3,103 m ²
. -This distribution enables a varied mix of retail, dining, and home entertainment outlets.
- Tenant Mix and Anchors: Riyadh Park Mall accommodates a considerable variety of anchor stores, even more boosting its appeal. The variety in its occupant mix caters to a broad spectrum of consumer choices.
- Occupancy Rates: Since August 2022, the shopping mall had a high occupancy rate of 91.2%. This is a sign of its popularity among retailers and customers alike, recommending a steady stream of foot traffic and consistent revenue generation.
- Investment Appeal: Given its tactical area, sizable GLA, varied renter mix, and high occupancy rate, Riyadh Park Mall represents a robust financial investment chance. Its success aspects serve as a guide for what investors must try to find 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 property market. Let's check out why it stands as a considerable case research study for possible investors:
- Prime Location: The shopping mall lies in Dammam, Ash Shohda, Ar Rawdah, strategically positioned to draw in a wide consumer base.
- Extensive Area: Covering an acreage of 421,330 m TWO, Granada Center Mall is one of the largest in Riyadh. It has a total built-up area of 318,064 m two and a Gross Leasable Area (GLA) of 102,080 m TWO
. -Leasable Area and Structure: The mall's substantial leasable location is attentively dispersed over two floors, improving 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 mall hosts a variety of renters, consisting of regional and international brands, which accommodates a broad market, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partially under remodelling, the shopping mall maintained a 64% tenancy rate as of August 2022. This figure is most likely to enhance post-renovation, making it an attractive prospect for future development.
- Investment Potential: Granada Center Mall's size, location, and tenant mix position it as a strong contender in Riyadh's retail market. Its large GLA and remodelling plans signal capacity for worth 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 TWO ".-" Gross Leasable Area: 102,080 m TWO ".-" Occupancy (Aug 2022): 64% (some parts of the shopping center under restoration)".
Case Study 3: Al Nakheel Mall
Al Nakheel Mall, an essential retail residential or commercial property in Riyadh, provides itself as an interesting case research study for investors. Here's an in-depth expedition of its functions:
- 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 populous and affluent location of Riyadh.
- Substantial Size and Offering: The mall covers a land area of 238,769 m two with a total built-up location of 299,448 m two and a Gross Leasable Area (GLA) of 81,322 m ². This extensive size assists in a varied 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 TWO- This circulation deals with different retail and leisure experiences, interesting a broad consumer base.
- Tenant Diversity: Al Nakheel Mall's occupant mix includes a series of local and worldwide brands, bring in a varied group of buyers and making sure steady step.
- Occupancy and Investment Potential: As of August 2022, the mall reported an occupancy rate of 82.0%. This reasonably high occupancy rate, combined with its size and area, marks Al Nakheel Mall as an appealing financial investment opportunity in the Riyadh retail market.
- Additional Considerations: The shopping mall becomes part of the Arabian Center Group, contributing to its credibility and appeal. Its large GLA and varied tenant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.
