Saudi Arabia is forecast to build over 400,000 residential units by 2030 to increase homeownership rates.
Unlike other regions, Saudi Arabia's property market has not been driven by price increases, which is largely attributed to the balance between supply and demand. Market prices have remained stable and still maintain rental yields of up to 7%, providing attractive investment opportunities for investors and homebuyers.
Riyadh is seen as a growth leader in Saudi Arabia's property market and is expected to capture more than 50 per cent of the market share by 2027. The government is actively working to establish Riyadh as a centre of innovation and progress, driving growth by attracting top talent and global companies to the region.
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Among these is Warefa by Roshn, a property developer backed by the Kingdom Wealth Fund, which will provide 2,000 housing units as well as a variety of basic commercial and lifestyle facilities. In addition, office space in Riyadh has grown significantly as many large companies have set up offices in the region, in line with the government's policy of relocating regional headquarters into the country.
Despite the attractiveness of the Saudi Arabian property market, it remains relatively fragmented on the supply side, with the top 5 players accounting for only 5-10% of the market. This provides an excellent opportunity for emerging developers to consolidate their position and paint a strong growth story through branding and the development of large-scale projects. With an expanding market and growing demand, Saudi Arabia's real estate sector is poised for an even brighter future.