How E Commerce Growth Results in Fuel Growth in Saudi Industrial Real Estate Investments.
- John Markus
- Dec 7, 2021
- 2 min read
Updated: Dec 8, 2021
As per the statistics it says that there is a Jump of 281 percent in the Real estate Investments with the growth in e commerce warehousing demands.
With the rise in the pandemic many e commerce player come into action and thus demanded for the warehouse spaces which increases the Real estate investment growth as well.
During the First half of 2021 the sector saw the value of Investment hit 20.5 billion riyals ($5.467 billion), while the number of jobs created reached 30,000.
Thus this change in the market has bring fluctuations in the rent prices as well which shows the upper trend for the Major cities.
Although the Government is playing a major role in the growth on industrial real estate investments but pandemic has boosted up the process.
With the merger of Amazon and Souq many E Commerce players came into picture that has shown the requirements of warehousing for essential products and category during the time of pandemic.
Many Homebred Ecommerce companies Like Noon, Dragonmart, Dubuy, Namshi, Sivvi has come into Picture with its strategy of being active during the time of pandemic and delivering major essential products and categories.
Many major marts like Dragonmart, which has a physical presence in UAE but has come up with the Online marketplace for an ease to its consumers to buy almost all major essential products from Home & Furniture to Healthcare and medical products online at cheaper prices.
Similarly Noon and sivvi brings up major deals online for its consumers time to time for its electronic products and category.
Thus e Commerce has gone up which increases the demand of more distribution centers and warehouses in UAE.
As per the Rent stats is concern the Prime rent has increased by nearly 8 percent while the B Grade rents are declined by 3.5 percent.
Developers are now keen enough in building stocks when the demand is confirmed and thus limiting the supply.
The shortage of prime supply, combining with the shift in developer attitudes towards speculative development means we may be on the cusp of creating a vibrant institutional investment market, provided adequate international regulations are also developed,
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