RIYADH: Saudi Arabia’s capital is driving the Kingdom’s retail development, with mall rentals increasing by 4% per year and 2.2 million square meters of store space planned by 2030. According to Knight Frank’s Spring 2025 Saudi Arabia Retail Market Overview, Riyadh will account for most of the 4.9 million sq. meters of retail construction planned throughout the Kingdom’s five main cities by 2030.
These include Jeddah, Dammam Metropolitan Area, Khobar, and Dhahran. According to the survey, the average mall rent in the Saudi capital is expected to rise to SR2,848 ($765) per square metre by the end of March, with occupancy rates increasing by 5% to reach.
The findings come as Saudi Arabia ramps up efforts to become a global tourism and business hub by the end of the decade. The Real Estate General Authority projects a property market worth $101.62 billion by 2029, driven by an expected compound annual growth rate of 8% over 2024.
According to Knight Frank, Riyadh’s retail change is accelerating due to both local and expatriate population growth and increased disposable incomes. Developers are putting experiential formats first, with more than half of new projects including entertainment zones, eating experiences, and movies. “These trends are consistent with Vision 2030’s goal of creating vibrant, leisure-centric urban spaces,” the research stated.
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