Development of shopping centres in Jeddah

Recently developed shopping centres have become one of the main features of shopping activities in Jeddah. In fact the city of Jeddah experienced a surprising increase in the development of shopping centres during the last decade. Developers entered the land development process with the intention of realising profits from a long‐term investment, but a considerable number of shopping centres were developed on the basis of insufficient or no feasibility studies thereby underestimating or neglecting expected rate of return and occupancy. Spatially, shopping centres present distinctive spatial and rental value patterns. This article is concerned with explaining the supply side of shopping centres by examining the development process through which they were built. The analytical framework is based on discussing the interaction of three sets of variables: contextual factors, including land policy and market mechanisms; site characteristics, and the developer's characteristics.