Riyadh's retail real estate market is a lively and evolving landscape, offering a plethora of opportunities for smart investors. Based upon the extensive benchmarking report, here are some essential dynamics forming this market:
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Diversity in Residential Or Commercial Property Sizes: The marketplace showcases a wide variety of residential or commercial property sizes, from massive malls like Granada Center Mall with a Gross Leasable Area (GLA) of roughly 100,000 m TWO, to smaller sized retail hubs like Boulevard Mall, boasting a GLA of around 8,000 m TWO. This diversity deals with a broad spectrum of consumer requirements and choices.
Geographical Spread: Retail residential or commercial properties in Riyadh are not focused in a single location however are spread across the city. This distribution permits a varied financial investment technique, targeting different 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 spending habits. This growth trajectory recommends an appealing future for retail financial investments in the region.
Quality and Standards: The picked residential or commercial properties for the study are kept in mind for their high requirements and quality renters. This aspect is crucial as it influences foot traffic, occupant retention, and overall residential or commercial property worth.
Catchment Areas
Catchment areas are a critical aspect of retail realty, especially for malls, as they directly influence the possible success of these residential or commercial properties. In Riyadh's retail landscape, understanding these locations is essential for investors.
Here's what the report exposes about catchment areas:
- Definition and Importance: A catchment area is the geographic area from which a mall or retail center draws its consumers. It's considerable because it affects foot traffic, sales potential, and eventually, the profitability of the retail residential or commercial property.
- Granada Center Mall: This mall stands apart with its catchment area covering an amazing 40.5% of Riyadh's population. This high percentage suggests its considerable effect 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 gamer in Riyadh's retail landscape. Its significant protection demonstrates its value 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 much deeper into the numbers, Granada Center Mall has the greatest share of a captive population, amounting to 23.8% of Riyadh's overall population. This indicates a strong devoted client 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% 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 realty market, comprehending lease rates and occupancy patterns is important for making informed investment decisions.
- Granada Center Mall: Since August 2022, this shopping mall, being one of the biggest in Riyadh, shows a tenancy rate of 64%. It is necessary to keep in mind that some parts of the shopping mall were under restoration at the time, which might have affected this figure.
- Riyadh Park Mall: This shopping center, presently the biggest in terms of Gross Leasable Area, has an outstanding tenancy rate of 91.2%, indicating high renter retention and constant consumer traffic.
- Riyadh Gallery Mall: With a tenancy rate of 93.3%, this shopping center stands as another essential gamer in the market, showing a strong and steady occupant 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 particular figures for lease rates per m ² per year aren't offered each shopping mall, the report indicates that all the shopping centers consisted of follow a comparable pricing structure. This uniformity recommends a market requirement, which can be an important element for investors when examining the potential return on investment.
Quotation from the Report:
- "Occupancy (Aug 2022): 91.2%" [Riyadh Park Mall]
- "Currently the 2nd biggest mall in Riyadh according to the Gross Leasable Area." [Granada Center Mall]
- "Another big shopping mall in Riyadh. The occupancy is great at 93.3%." [Riyadh Gallery Mall]
- "A crucial 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 financial investment in Riyadh's dynamic market. Here's an in-depth 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 tactically located. It boasts a land area of 139,118 m TWO, offering ample area for a diverse series of retail and home entertainment alternatives.
- Size and Structure: The shopping mall includes a total built-up area of 241,220 m two and a Gross Leasable Area (GLA) of 105,290 m TWO. This significant size is dispersed throughout 3 floors, providing a large array of renting alternatives.
- Leasable Area Distribution: The leasable location is divided as follows:.
- First Floor: 38,499 m TWO
. -Ground Floor: 63,687 m ²
. -Basement: 3,103 m ²
. -This circulation permits a diverse mix of retail, dining, and 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 renter mix deals with a broad spectrum of consumer choices.
- Occupancy Rates: Since August 2022, the mall had a high tenancy rate of 91.2%. This is a sign of its popularity amongst sellers and customers alike, a stable stream of foot traffic and consistent earnings generation.
- Investment Appeal: Given its tactical place, large GLA, varied tenant mix, and high tenancy rate, Riyadh Park Mall represents a robust investment chance. Its success factors serve as a guide for what investors need to look for in prospective 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 popular retail destination in Riyadh, provides valuable insights into the city's retail real estate market. Let's check out why it stands as a significant case research study for prospective financiers:
- Prime Location: The shopping center is located in Dammam, Ash Shohda, Ar Rawdah, strategically placed to attract a wide customer base.
- Extensive Area: Covering an acreage of 421,330 m ², Granada Center Mall is among 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 mall's comprehensive leasable area is thoughtfully distributed over 2 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, including local and worldwide brand names, which accommodates a broad demographic, increasing its appeal as a retail destination.
- Occupancy Rate: Despite being partly under renovation, the shopping mall maintained a 64% occupancy rate as of August 2022. This figure is likely to enhance post-renovation, making it an attractive possibility for future growth.
- Investment Potential: Granada Center Mall's size, location, and renter 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 attractive alternative for investors.
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 mall under remodelling)".
Case Study 3: Al Nakheel Mall
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Al Nakheel Mall, an essential retail residential or commercial property in Riyadh, provides itself as an appealing case study for investors. Here's a detailed exploration of its functions:
- Strategic Location: Located on Othman Bin Affan Road, Abi Sofian Ibn Harb, Mugharazat, Al Olaya, this mall gain from its position in a populated and affluent area of Riyadh.
- Substantial Size and Offering: The shopping mall covers a land location of 238,769 m ² with a total built-up area of 299,448 m two and a Gross Leasable Area (GLA) of 81,322 m TWO. This extensive size facilitates a varied 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 circulation caters to various retail and leisure experiences, attracting a wide customer base. - Tenant Diversity: Al Nakheel Mall's occupant mix consists of a variety of regional and worldwide brands, bring in a diverse group of shoppers and guaranteeing constant footfall.
- Occupancy and Investment Potential: As of August 2022, the shopping mall reported a tenancy rate of 82.0%. This reasonably high tenancy rate, integrated with its size and place, marks Al Nakheel Mall as an appealing financial investment chance in the Riyadh retail market.
- Additional Considerations: The mall belongs to the Arabian Center Group, contributing to its credibility and appeal. Its big GLA and diverse occupant mix position it well within the competitive landscape of Riyadh's retail residential or commercial properties.