Riyadh’s manufacturing sector shows solid annual growth to Q2

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Riyadh’s industrial manufacturing sector showed solid performance over the last year up to the second quarter of 2014, according to a new report by Colliers.

It said strong demand combined with increased public and private sector spending pushed up the average sales price of manufacturing land in private industrial cities and average rental rates of dry-storage space.

While 10.1 million square metres of manufacturing land is anticipated to enter the market by 2018, Colliers International’s Riyadh Industrial Market Overview said demand will remain strong driven by solid economic fundamentals, a burgeoning population and government plans to increase the economic contribution of the industrial sector.

The report added that, while the influx of supply will have a marginal impact on the market’s take-up level owing to strong fundamentals, it is anticipated that tenants will place more focus on the quality of infrastructure and demand different forms of financing and ownership/leasehold structures.

 

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