Evaluating the Rapid Growth of Shopping Malls in Dammam Metropolitan: a Field Study

(Adnan bin Abdullah Al-Shiha)

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Abstract

The study investigates the continued growth of investment in building shopping malls while there is a decline in mall occupancy and rental demand. The paper explore the existing situation of shopping malls in Dammam Metropolitan, major factors behind shopping mall investment and the nature of feasibility studies conducted for these projects.
The results of the study indicate that the major factor effecting investment decision is to own a land in suitable location. The majority of investors have not seeked professional consultation. The feasibility studies concentrated on; cost and return estimation, and methods of finance based on annual population growth and purchasing power. Some studies has ignored important aspects such as estimation of existing demand and supply and the analysis of major retail sectors that would have forecasted the rental demand on the shopping mall. Other studies did not analyze the trade area including time spent to reach location, competitors, physical constraints, economic and social factors and location comparative advantages. The study concluded with a number of recommendations related to regulating and activating shopping mall sector.

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