Retail real estate in Riyadh: rents, supply and where to open next

By Chadi Kouatly, Managing Partner, Foretus. Published September 2026.

Riyadh's retail stock is growing by 28% to about 4.6 million square metres, average rents in regional and super-regional malls are around SAR 2,725 per square metre a year, and occupancy is about 90%, according to Knight Frank. For brands, that means choosing between proven schemes at rising rents and new destinations with opening risk. Here is how to decide.

The supply picture

Knight Frank estimated Riyadh's existing retail stock at 3.6 million square metres, rising to 4.6 million by 2026 as a wave of lifestyle, mixed-use and giga-project-linked schemes opens. Jeddah and the Dammam Metropolitan Area have seen softer rents and occupancy than the capital. The new supply is concentrated in open-air, F&B-led and entertainment-anchored formats rather than traditional enclosed malls.

Rents and occupancy

Regional and super-regional malls in Riyadh averaged around SAR 2,725 per square metre annually, up about 3% year on year, with occupancy at 90%, five points higher than a year earlier. Jeddah averaged roughly SAR 2,465 (occupancy 84%) and Dammam about SAR 2,275 (occupancy 89%). Prime units in the newest destination schemes command significant premiums over these averages; secondary malls discount heavily.

What it means for site selection

Proven schemes. Established super-regional malls deliver footfall from day one but have limited availability, rising rents and less flexible terms. Best for brands whose economics rely on volume and whose positioning matches a mass or premium-mass audience.

New destinations. New lifestyle and mixed-use schemes offer better unit positions, fit-out contributions and rent-free periods, with the risk of delayed openings and slow ramp-up. Best for concept-led F&B and premium brands that benefit from curation, provided break options and opening-date protections are negotiated.

High street and stand-alone. Growing for cafes and destination restaurants in Riyadh's northern districts. Lower occupancy cost, more operational responsibility, and licensing that differs from mall units.

Lease terms that matter

Base rent versus turnover rent; fit-out contribution and rent-free period; service charge and marketing levy; exclusivity within the scheme; relocation and redevelopment clauses; break options tied to opening dates and footfall; and the scope of any personal or corporate guarantee. Operators who have lived with these clauses negotiate them differently from brokers who have not.

Frequently asked questions

Are Riyadh mall rents still rising? Yes, modestly in prime schemes; secondary schemes are under pressure as new supply opens.

Should a new brand open in a new scheme or an established mall? It depends on whether the brand needs footfall (established) or positioning (new). Many brands do one of each.

Can foreign companies now own retail property in Saudi Arabia? Yes, since the January 2026 reforms, for operational purposes, which opens owner-occupied options for larger operators.

Sources: Knight Frank, Saudi Arabia Retail Market Review (Riyadh stock, rents and occupancy); reporting in Arab News and Argaam; Saudi real estate ownership reforms (January 2026). Get an operator's view on your site strategy: info@foretus.com