Real estate and infrastructure projects in Saudi Arabia cross $1.25 trillion, with the value of commissioned projects reaching $250 billion, a new report found.
“Arguably one of, if not the most expansive real estate development programs ever seen in the world is gathering pace in Saudi Arabia as the 2030 deadline nears to realise Vision 2030,” said Faisal Durrani, Head of Research for the Middle East and North Africa at real estate consultancy Knight Frank.
Since the launch of the kingdom’s National Transformation Plan in 2016, the volume of residential units planned has risen exponentially. The volume of planned residential units rose 30 percent in the last 12 months to around 660,000, a figure which will come “as good news to those looking for properties “as welcome news to house hunters prevented by the recent spike in values,” said Durrani.
“That being said, affordability is still a key hurdle for many buyers and so price points for the new inventory will be critical to reigniting domestic demand.”
Knight Frank’s annual Saudi Giga Projects Report found that Western Saudi Arabia remains a central piece in the transformative vision for the kingdom, with $687 billion of real estate projects to expected to be delivered by the end of the decade.
Saudi capital to build over 241,000 homes amid housing supply crunch
Riyadh, the Saudi capital, currently accounts for 18 percent of all real estate and development projects underway, totalling some $229 billion.
The city plans to build over 241,000 homes by 2023, in addition to 3.6 square metres of office space. This will come as a relief for many business seeking to relocate to the kingdom as the city has grappled with a severe supply shortage in Grade A offices and adequate accommodation options to cater to the rapidly rising demand for properties.
“Riyadh is a hive of construction activity as the city races to keep pace with demand in all real estate segments, while also balancing its vision to emerge as a key global financial and commercial capital,” Durrani added.
“While the $229bn development pipeline is itself significant, this is around a quarter of the planned $1 trillion total spend to transform the capital. Of note is Riyadh’s ambition to secure hosting rights for the 2030 World Expo, which could further catalyse the pace of transformation and help to crystalise the city’s grand vision.”
Riyadh is currently grappling with an office space shortage which has been further exacerbated by the flurry of global companies moving into the country as the ‘Project HQ’ initiative deadline looms. Saudi Arabia issued a mandate in 2021, requiring foreign firms to establish local headquarters in the country or risk losing out on lucrative government contracts.
The report also highlighted King Salman Park as being one of the most advanced giga projects in the city, with $8.8bn of contracts awarded in the $9bn development as it moves closer to completion in 2027, complete with over 12,000 homes, more than 600,000 square metres of office space and over half a million square metres of retail offerings.
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