Saudi Real Estate Market, the World Strongest –Knight Frank Announce

One of the world’s leading independent real estate consultancy firm, confirmed that what happened over the last five years, in the Saudi real estate market, has been nothing short of incredible, Knight Frank said.

The company outlined that the lightning speed, at which reforms are being implemented and the pace at which giga real estate projects are rising is just the tip of an iceberg.

“We are witnessing the emergence of what looks set to be one of the hottest new real estate markets in the world,” it added.

The leading global real estate advisor explained that the number of residential mortgages issued in the first half of 2021 was over 150,000, more than ten times the level registered in the first half 2016.

“Clearly, the government is delivering on its pledge to improve access to world-class housing for all and is doing so in style.

By 2030, the completion of more than 1.3 million residential units, in excess of 3 million square meters of new office space and over 100,000 hotel rooms across Saudi Arabia.”

Knight Frank added that while 2021 marks Saudi Arabia’s 91st National Day, it is also the fifth anniversary since the launch of the National Transformation Plan.

Five years on from the launch of the Kingdom Vision 2030, Saudi Arabia’s real estate market has blossomed, with further exponential growth expected, according to the latest analysis by global real estate consultant Knight Frank.

Faisal Durrani, partner and head of Middle East research, Knight Frank, said: “With Vision 2030, Saudi Arabia is a country declaring to the world that it has arrived.

As we head towards the Kingdom’s 100th birthday in 2030, Vision 2030 is materializing before us and its powerful impact is nowhere more visible than in Saudi Arabia’s vibrant and resilient real estate market.”

Knight Frank is tracking close to $1 trillion worth of real estate and infrastructure projects, that have been announced in the wake of the National Transformation Plan and this is only a third of the total US$ 3.2 trillion of spending that is planned.

So far this includes 8 giga projects under implementation, including the cutting edge $500 billion NEOM and the spectacular new $20 billion Diriyah Gate neighborhood in Riyadh, that promises to transform luxury living in the capital, Riyadh.

Furthermore, in the national office markets, headline rents were clearly impacted by the pandemic, but rates for the best offices, in Riyadh, have recovered to pre-pandemic levels and demand is growing rapidly.

The industrial markets too are expanding, at an unprecedented rate as requirements outstrip demand in many locations.

Government efforts to reshape the economic and real estate landscape are driving a sharp upturn in business activity, with the number of new business licenses issued soaring. Indeed, Q1 2021 has seen the highest ever number of new foreign business investment licenses issued.

Harmen de Jong, partner, real estate strategy and consulting, at Knight Frank Saudi Arabia said: “The peak in residential mortgages seems to correlate with demand for real estate advisory services this year, exceeding pre-pandemic levels seen in 2018 and 2019.

We are beginning to see increased appetite from private sector real estate developers, in the form of public-private-partnership initiatives, with large scale government led projects.

This is a key trend, which will further support the realization of the Kingdom Vision 2030.