Retail space demand in Riyadh drives 4.2pc rent increase

RIYADH, Dec 08 (Arab News): The retail market in Riyadh saw a five-per centage-point increase in occupancy rates, reaching 92 per cent by the end of the third quarter, according to a new report by Knight Frank.

The report also highlighted a 4.2 per cent year-on-year rise in average rental rates, which reached SR2,845 ($757.24) per sq. meter.

This increase reflects the city's growing appeal as part of Saudi Arabia's Vision 2030, aiming to transform Riyadh into a leading business and tourist hub.

"Over the last 12 months, the retail market in Riyadh has experienced a steady rise in rental rates, particularly in well-located regional and super-regional malls," Knight Frank stated.

The firm pointed to prime locations like Riyadh Park and Al Nakheel Mall, which have maintained near-full occupancy thanks to their strategic positions, diverse tenant mix, and entertainment offerings.

Meanwhile, the supply of retail space in Riyadh grew with the addition of 22,500 sq. meters, bringing the city's total retail space to 4.3 million square meters by 2026, a 21 per cent increase.

"Riyadh's retail market is growing along key corridors like King Fahd Road, Olaya Street, and northern districts, driven by urban expansion and rising consumer spending," Knight Frank said.