PHOTO
08 May 2016
RIYADH: As the largest economy in the Middle East, the retail market in Saudi Arabia is witnessing strong growth.
Driven by a growing, young population with a high disposable income, analysis released today from global real estate advisers Colliers International, paints a positive picture of an expected surge in shopping mall construction and renewed interest from international retail brands.
"The Saudi retail market offers investors a unique proposition," said Imad Damrah, managing director, Colliers International KSA.
"The sheer size of the market alone represents good long-term potential for brands entering the market, while factors including a high proportion of generation Y&Z, harsh climates in the summer and a lack of other entertainment options means that consumers are looking to malls as recreational facilities where they can socialize and spend time with their families," said Damrah.
"However, it is important to note that factors such as location, competition, catchment area specifics, and mall management must be considered before initiating the development of retail malls."
Damrah continued: "As new supply comes online, we expect market dynamics to shift. In order to maintain higher occupancy and rentals, we anticipate that developers will look to new retail formats that will create destinations for consumers to socialize while also supporting hospitality and office components. This can be achieved through the introduction of entertainment and food and beverage options as well as first to market brands."
RIYADH: As the largest economy in the Middle East, the retail market in Saudi Arabia is witnessing strong growth.
Driven by a growing, young population with a high disposable income, analysis released today from global real estate advisers Colliers International, paints a positive picture of an expected surge in shopping mall construction and renewed interest from international retail brands.
"The Saudi retail market offers investors a unique proposition," said Imad Damrah, managing director, Colliers International KSA.
"The sheer size of the market alone represents good long-term potential for brands entering the market, while factors including a high proportion of generation Y&Z, harsh climates in the summer and a lack of other entertainment options means that consumers are looking to malls as recreational facilities where they can socialize and spend time with their families," said Damrah.
"However, it is important to note that factors such as location, competition, catchment area specifics, and mall management must be considered before initiating the development of retail malls."
Damrah continued: "As new supply comes online, we expect market dynamics to shift. In order to maintain higher occupancy and rentals, we anticipate that developers will look to new retail formats that will create destinations for consumers to socialize while also supporting hospitality and office components. This can be achieved through the introduction of entertainment and food and beverage options as well as first to market brands."
© Arab News 2016
