Riyadh & Jeddah Retail Destinations Set for Major Expansion by 2027

Saudi Arabia’s lifestyle retail sector is set for significant growth, with Riyadh and Jeddah projected to add 600,000 square metres of new space by 2027, bringing the total to 1.31 million square metres, according to Knight Frank’s Riyadh and Jeddah Lifestyle Retail Scene report. The study highlights a shift away from traditional malls toward destinations that combine retail, dining, and leisure to retain consumer engagement.

In Riyadh, current supply stands at 484,900sqm across 27 developments, including 47,500sqm delivered in 2023. By 2027, the city’s retail space is expected to reach 871,200sqm through 12 new projects. Among the largest additions are Al Hamra, delivering 89,230sqm in 2024, the redevelopment of Euromarche into Riyamarche with 21,840sqm by 2026, and The Bellvue mixed-use project, adding 90,000sqm by 2027. Riyadh’s current occupancy rate is 97%, with food and beverage units averaging 76% occupancy and lease rates at SAR 2,400 per sqm. Rising consumer spending, up 7% year-on-year to SAR 1.4 trillion, has supported this sector’s expansion.

In Jeddah, 24,100sqm of lifestyle retail space was added in 2023, increasing total supply to 233,400sqm across 17 developments. Supply is forecast to reach 439,000sqm by 2027, with seven projects adding 205,600sqm. Key developments include Jeddah Cove Waterfront, expected to contribute 70,000sqm by 2027, and the Delta mixed-use project, adding 37,200sqm in 2024. Lease rates in Jeddah average SAR 2,200 per sqm, with overall occupancy at 81% and food and beverage at 75%.