Riyadh’s retail sector has experienced a significant uptick, with mall rental rates increasing by 4.2% in the third quarter of 2025, bringing the average rent to SAR 2,845 per square meter.
This surge is attributed to heightened demand for retail spaces and a rise in occupancy rates, which have reached 92%.
The growth is driven by the continuous expansion of retail projects, including the opening of new shopping destinations, reflecting a shift in consumer behavior towards integrated and entertainment-focused shopping experiences.
Government initiatives, such as allowing full foreign ownership, have also played a role in attracting global brands and boosting investment in the sector.
While an increase in retail space supply is anticipated by 2027, prime locations in Riyadh are expected to maintain stable rental rates due to strong demand. Conversely, secondary locations may face pricing pressures amid growing competition.
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