RIYADH: Saudi Arabia is set to see lifestyle retail space in Riyadh and Jeddah expand by almost 600,000 sq. meters to 1.31 million sq. meters by 2027, reinforcing its global shopping destination ambitions.
A new report by real estate consultancy Knight Frank showed that consumer preferences are shifting from traditional malls to mixed-use destinations blending shopping with entertainment, dining, and cultural experiences.
The expansion coincides with the Kingdom’s plan to attract 150 million tourists annually by 2030, up from an earlier target of 100 million, spurring international brands to enter the market.
The Real Estate General Authority projects the sector will reach $101.62 billion by 2029, supported by a compound annual growth rate of 8 percent from 2024.
“In response to this shifting consumer behavior, lifestyle retail destinations have emerged as a much more popular choice,” said Faisal Durrani, partner – head of research for Middle East and Africa at Knight Frank.
