Saudi Arabia will see sustained property market growth, with $1 trillion slated for real estate and infrastructure projects, said S&P Global Ratings.
The retail property sector also has long-term growth potential, backed by a young population, increasing urbanization, expanding tourism, and expected significant growth in the entertainment industry.
At least eight new cities are planned, along the coast of the Red Sea, with more than 1.3 million new homes by the end of the year 2030. Numerous projects are also slated for existing main cities.
Real estate will gain from various new programs to provide local housing and invigorate the business and financial sectors via investments in commercial real estate, S&P said.
The office market has been boosted by a government initiative to attract multinational companies to establish their headquarters in the kingdom. This momentum is expected to continue amid strong occupancy rates and limited new additions in the next three years.
The global rating agency has pointed out that many new programs have been rolled out to offer local housing and revitalize the business and financial sectors, potentially benefiting commercial real estate in the country.
The tourism sector will be a main non-oil growth driver, providing investment opportunities for private local or international investors as Saudi Arabia aims to attract 100 million visitors annually by 2030.
On the sidelines of the Distinguished Cities Projects Exhibition in Riyadh, the National Housing Company inked nine agreements worth $533 million with several national strategic partners.
Meanwhile, in its Saudi Arabia Commercial Market Review – Summer 2022 report, global real estate consultancy Knight Frank highlighted that Riyadh’s retail property sector is also seeing a push toward leisure and entertainment offerings.
Other sectors that stand to gain from Saudi Arabia’s Vision 2030 include energy, transport, tourism, health care, and digital infrastructure.
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