Riyadh outperformed Jeddah throughout all retail classes within the second quarter of 2025, supported by stronger fundamentals, greater client spending energy and higher funding focus.
In keeping with JLL’s newest KSA Retail Market Dynamics report, super-regional malls in Riyadh maintained excessive occupancy, with emptiness charges at 2.5 p.c within the quarter. Regional and neighborhood malls recorded greater vacancies at 11.2 p.c and 13.4 p.c respectively, although well-located neighborhood centres achieved charges under 5 p.c.
In Jeddah, super-regional malls posted an 8.3 p.c emptiness charge, whereas regional and neighborhood malls confronted greater ranges of 23.5 p.c and 20.9 p.c.
Neighborhood centres have been the strongest performers in rental progress throughout each cities. In Riyadh, rents rose 6.2 p.c year-on-year to SAR 2,149 per sqm each year. Tremendous-regional and regional malls recorded progress of 1.1 p.c and a pair of.8 p.c respectively. In Jeddah, neighborhood malls posted a 4.2 p.c enhance, whereas regional malls rose 1.2 p.c and super-regional mall rents fell 3.7 p.c.
“Saudi Arabia’s retail market is evolving and is poised for important transformation underneath the future-focused Imaginative and prescient 2030 agenda,” stated Saud Al Sulaimani, Nation Head, KSA at JLL. “The rising affect of tourism spending and diversifying client demographics, coupled with a considerable retail provide pipeline, is reshaping market dynamics, particularly within the capital, Riyadh.”
Landlords are more and more deploying incentives comparable to versatile lease phrases, rent-free intervals and CAPEX contributions to safe tenants. Style retailers demonstrated stability and progress within the quarter, whereas F&B operators, significantly native espresso outlets, confronted operational challenges. Leisure venues, together with cinemas, confronted oversupply issues, the report stated.
Riyadh added 114,100 sqm of retail gross leasable space (GLA) within the first half of 2025, bringing its complete inventory to 4.35 million sqm, with 195,430 sqm scheduled for completion by year-end. Jeddah recorded 223,240 sqm of latest provide within the first six months, lifting its complete to 2.58 million sqm, with an extra 92,380 sqm anticipated within the second half.
