Real Estate & Construction
From The Report: Saudi Arabia 2020
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With a young population and an increasing number of Saudis entering the workplace, the demand for housing and offices is expected to remain high. As housing preferences evolve, with a move away from extended family homes to those based around nuclear families, appetite for smaller affordable units are set to increase. This will boost construction of residential units and drive continued demand for mortgages. Beyond this, various mega- and giga-projects and large residential housing schemes will drive sector activity. The Kingdom’s growing tourism industry is also expected to be a force in construction planning. As Saudi Arabia prepares for a greater number of visitors due to a new tourist visa, the country will need to analyse its infrastructure requirements, including accommodation and urban transport.

Articles from this Chapter

Overview

Home sweet home: Government efforts to boost affordable housing, as well as rising retail and office supply, benefit young, working Saudis
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Saudi Arabia’s residential housing segment underwent significant expansion in 2019 following several years of muted growth. The government has been the primary driver of this recent uptick in activity, launching a number of regulatory reforms and financing initiatives to increase the availability of affordable housing. Current trends in the segment include an expanding mortgage market, more first-time buyers and the development of large-scale housing projects. On the commercial side, major…

Analysis

Entertainment time: An expanded leisure offering supports real estate development
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Overview

Strong foundations: The sector bounced back in 2019, with infrastructure works, housing developments and large-scale projects ramping up
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The construction sector is expected to see significant growth over the next decade, led by Vision 2030 programmes. Construction activities gained pace during 2019, with a number of infrastructure plans either announced or initiated. In addition, some major projects are nearing completion, such as the Riyadh Metro, while the Kingdom’s emerging giga-projects are driving optimism in the sector and related industries. Although the longer-term outlook remains positive, the Covid-19 crisis is…

Analysis

Spearheading growth: Giga-projects to expand the entertainment and tourism offering
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Saudi Arabia is in the midst of developing a number of large-scale, complex and multi-purpose construction projects that aim to transform the wider economy. The Kingdom’s main giga-projects are NEOM, the Red Sea Project and Qiddiya. Rolled out as part of Vision 2030, these developments are globally unique in scope and ambition, and aim to stimulate broader economic growth. The developments follow on from earlier King Abdullah-era mega-projects, such as the King Abdullah University of Science…