Saudi Arabia’s retail property sales growth gains momentum, and more updates

For PropertyGuru’s real estate news roundup, Saudi Arabia’s retail real estate sales are set to grow from 2.4 percent in 2024 to 2.7 percent by 2027. In other news, private buyers dominate the large format retail investment space in Australia. Lastly, Vietnam joined 10 other member countries of the Asia Zero Emission Community (AZEC) at the second AZEC Ministerial Meeting.

Saudi retail real estate sales to reach USD183 billion by 2027: Deloitte

Saudi Arabia’s retail real estate sales are set to grow from 2.4 percent in 2024 to 2.7 percent by 2027, reaching USD183.2 billion, driven by modernization and urban development.

In its latest Saudi Arabia Real Estate Predictions release, global consultancy firm Deloitte, citing the Economist Intelligence Unit, revealed that retail sales reached USD142.7 billion in 2022.

The 10th annual predictions report, which assessed the Kingdom’s real estate market in 2023 and projected trends for 2024 across various sectors, said that Saudi Arabia’s post-pandemic economic recovery gained momentum, driven by eased travel restrictions and improved visa processing. As mentioned in Arab News, the changes have boosted the hospitality sector, with streamlined online visa applications enhancing tourist access and fueling a resurgence in travel and tourism.

Private investors power large format retail deals in Australia

New CBRE research reported by realcommercial.com.au found that private buyers have come to dominate the large format retail investment space, accounting for 66 percent of big box retail transactions last year, up from 36 percent in 2020.

Recent deals include selling the Robina Super Centre on the Gold Coast from a QIC fund to private investors for about AUD53 million, reflecting a 7 percent yield. HMC Capital also sold its HomeCo Box Hill property to private investors for about AUD68 million at a 5.8 percent yield in November.

However, the dominance of private investors last year came as institutional investors retreated from large format retail (LFR) deals, with national investment volumes shrinking to AUD409 million the previous year.

Vietnam shares efforts towards the Asia Zero Emission Community

Vietnam joined 10 other member countries of the Asia Zero Emission Community (AZEC) at the second AZEC Ministerial Meeting held in Jakarta, Indonesia, on 21st August.

As mentioned in VietnamPlus, the event aimed to look into the countries’ efforts to pursue the targets of net zero emissions, encourage businesses to engage in decarbonisation efforts, and hold a business matching forum to enhance cooperation in the future.

As many as 70 new MoUs were signed at the meeting, which also recorded many significant results, including a joint statement of the second AZEC Ministerial Meeting, the publication of an MoU for the new AZEC project, and the organisation of the AZEC Business Forum.

At the business forum held as part of the meeting, Vietnam shared its efforts in efficient energy use to achieve net-zero targets. Pham Van Tan, Deputy Director of the Climate Change Department under the Ministry of Natural Resources and Environment, said that Vietnam and its partner Japan have identified more than 80 projects that could be implemented within the AZEC framework.

The Property Report editors wrote this article. For more information, email: [email protected].