Investor’s Guide to Shopping Malls in Riyadh

January 27, 2024 | Retail Sector, Saudi Arabia | No Comments

The retail property scene in Riyadh, especially its bustling malls, is a vibrant and rapidly expanding market that’s catching the interest of experienced real estate investors from all over the globe. It’s an energetic, ever-growing hub that stands out as a prime investment hotspot.

In this article, we’re diving into the dynamic retail real estate sector of Riyadh, exploring what makes the city’s malls such magnets for tenants and shoppers alike, and sizing up three of the biggest shopping havens in the capital. 

Get ready for an inside look at the high-energy world of Riyadh’s retail real estate.

Table of Contents

Benefits of Investing in Shopping Malls in Riyadh

1. Diversity in Property Sizes
2. Geographic Distribution
3. Growth Prospects
4. Quality Standards

Attractiveness of Riyadh’s Malls to Tenants and Customers

Catchment Areas in Riyadh Top 10 Malls in Riyadh Ranked by Customer Attraction Capacity

Occupancy Rates for Each Shopping Center

Comparison of 3 of the Largest Malls in Riyadh

Benefits of Investing in Shopping Malls in Riyadh

1- Diversity in Property Sizes:

Reports indicate a variety of shopping center sizes in Riyadh, from large centers like Granada Mall with a total rental area of 100,000 square meters to smaller centers like Boulevard Mall with a rental area of 8,000 square meters. This diversity attracts a wide range of investors and consumers with different needs and preferences.

2- Geographic Distribution:

Retail properties in Riyadh are geographically distributed throughout the city. This allows real estate investors to target a wide range of demographic and economic groups, thereby multiplying and diversifying investment opportunities.

3- Growth Prospects:

There is a consensus on the significant growth of the retail sector in Riyadh, driven by various factors, most notably the Saudi Vision 2030 to make Riyadh the regional capital and the goal to double the city’s population from 8 million to 17 million by 2030.

4- Quality Standards:

Retail properties in Riyadh maintain high-quality standards in terms of facilities and tenants. This factor decisively affects shop visitation rates, tenant retention, and the overall property value.

Attractiveness of Riyadh’s Malls to Tenants and Customers

1- Catchment Areas in Riyadh

A catchment area is the geographic area from which a shopping center draws its customers. Catchment areas are one of the most important factors determining the success of a shopping center. In Riyadh, as elsewhere, it is important to have accurate data on the population of catchment areas to make informed investment decisions.

2- Top 10 Malls in Riyadh Ranked by Customer Attraction Capacity

Mall NamePopulation of the Area% of Riyadh’s PopulationMall’s Coverage Range% of Riyadh’s Population
Granada Mall3,275,66240.5%884,63123.8%
Nakheel Mall2,836,15535.0%511,54813.8%
Riyadh Park Mall2,602,03032.1%500,31413.5%
Riyadh Front Mall2,161,59126.7%401,26610.8%
Panorama Mall2,089,15425.8%618,29316.7%
Cenomi Al Hamra Mall1,620,58520.0%308,5548.3%
U Walk Mall1,529,56218.9%245,6276.6%
Riyadh Gallery Mall637,5967.9%76,0052.0%
Kingdom Centre Mall505,6736.2%65,5261.8%
Mode Mall275,7513.4%33,2070.9%

3- Occupancy Rates for Several Shopping Centers in Riyadh (August 2022)

Mall NameOccupancy Rate (August 2022)
Riyadh Park Mall91.2%
Granada Mall64%
Riyadh Gallery Mall93.3%
Nakheel Mall82.0%
Panorama Mall84.4%
Riyadh Front Mall71.6%
Cenomi Al Hamra Mall94.4%
U Walk Mall93.2%
Kingdom Centre Mall79.8%
Mode Mall72.8%
Riyadh Avenue Mall96.9%
Zone Mall86.5%
Centria Mall85.3%
Localizer Mall79.5%
Esplanade Mall73.6%
Boulevard Mall82.8%

Comparison of 3 of the Largest Malls in Riyadh

CharacteristicsRiyadh Park MallGranada MallNakheel Mall
LocationPrince Mohammed Bin Saad Bin Abdulaziz Road, Aqiq, North, RiyadhDammam Road, Shahed, Rawdah, RiyadhUthman Bin Affan Road, Abi Sufyan Bin Harb, Mughrazat, Olaya, Riyadh
Land Area (m²)139,118421,330238,769
Building Area (m²)241,220318,064299,448
Total Rental Area (m²)105,290102,08081,322
Distribution of Rental SpaceFirst Floor: 38,499 m², Ground Floor: 63,687 m², Basement: 3,103 m²First Floor: 60,027 m², Ground Floor: 42,052 m²First Floor: 58,463 m², Second Floor: 20,767 m², Ground Floor: 2,091 m²
Occupancy Rate (As of August 2022)91.2%64% (partially under renovation)82.0%
Investment AttractivenessHigh, due to the location, size, diversity of tenants, and high occupancy rateStrong, considering the size, location, tenant diversity, and new potential post-revampPromising, based on the high occupancy rate, size, location, and diversity of tenant categories

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