Saudi Arabia’s King Abdullah Economic City (KAEC) is “very optimistic” about 2019 amid an increase in demand for residential properties in the area, according to group CEO Ahmed Linjawi.
Speaking to Arabian Business on the sidelines of the Saudi International golf tournament, Linjawi said that the increasing number of businesses that have established operations in KAEC have driven demand for homes as more employees are required to live in the city.
“We contribute a lot to driving our own demand,” he said. “People are moving here because there are new jobs for them to work in.”
Among the companies that now have a presence in KAEC are American pharmaceutical giant Pfizer, French oil and gas company Total, Sweden’s IKEA, Saudi Arabia’s Almarai and Dubai-based Aramex.
Additionally, Linjawi said that “a lot of people are buying because they see this as a good second home.”
“That might be as a place for leisure, either for themselves or for them to use that as an investment to lease out to people who are coming here,” he said.
Masterplans for KAEC call for the city to eventually have a population of nearly 2 million residents spread out over an area of approximately 181 million square metres, or roughly three times the size of Washington DC.
At the moment, Linjawi said that 40 percent of the project – including residential, industrial and port facilities – has been developed, with a total population of 10,000 fulltime residents.
“We are seeing fairly good growth in demand. [We are] a bit constrained by the macro-economic situation, but we are very optimistic about 2019,” he said.For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.