Demand for retail space in Riyadh growing rapidly

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RIYADH - The Kingdom will host Cityscape Riyadh Exhibition, the first of its kind event, as the demand for retail space is rapidly growing in the Saudi capital. The retail space in Riyadh is expected to reach 2.9 million square meters by 2014.

Deep Marwaha, Director of Cityscape Riyadh, said there has been 22 percent increase in retail property point-of-sales transaction in April this year, a reflection of Kingdom's robust economic growth.

"Retail property sales in Riyadh are being driven up by improving consumer confidence. The point-of-sale transactions were up 22 percent in April 2010 and the Kingdom's robust economy will help sustain this trend within the next few years," Marwaha said.

Cityscape Riyadh 2010 starting from Dec. 12 to 14, 2010 will offer a clearer picture for investment opportunities and what strategies the developers and investors should adopt as Riyadh, under its 'New Riyadh" vision is overhauling its local infrastructure, said Marwaha.

He said the retail space is expected to reach 2.9 million sqm by 2014 from the current 2.3 million sq. meters. This will complement the development of new suburban districts and support the emergence of a 'New Riyadh,' he said.

The demand for office space is also on the rise, with over one million square feet of new office space set to be introduced by 2015.

He said housing remained as Riyadh's main property segment though, with total local inventory currently estimated at 900,000 units and prices expected to increase by around five to 10 percent over the next two years.

Apartment rates throughout the city are up by around six percent over the second half of 2009, while villas are fetching prices around 3.9 percent higher.

These and other key industry trends will be highlighted during Cityscape Riyadh 2010, the first-ever local edition of Saudi Arabia's premier real estate investment and development event at Four Seasons Hotel in Riyadh.

During the three-day event, Cityscape Riyadh Exhibition will also host a roundtable for investors and Cityscape Riyadh Conference and Cityscape Riyadh leaders in real estate.

Emaar Middle East, a premier real estate developer has confirmed its participation at Cityscape Riyadh 2010 as Principal Sponsor.

The Asian Public Real Estate Association (APREA), the leading professional body of real estate practitioners in Asia, has also signed up for the event.

Over 50 domestic and international real estate firms are expected to exhibit at Cityscape Riyadh 2010 and tap the extensive market reach of the Cityscape network, which comprises more than 350,000 global investors and real estate professionals.

By Shahid Ali Khan

© The Saudi Gazette 2010