Construction of 16 new entertainment complexes, an aquatic centre and three leisure hubs across the Kingdom by 2030 presents opportunity for development of Commercial, Retail and Hotel Real Estate in Saudi Arabia: Ken Research

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Saudi Arabia’s Vision 2030 aims to reduce the reliance on oil economy will provide opportunities for new developments in the tourism, entertainment and retail real estate.

The Public Investment Fund (PIF) has been tasked to invest in companies and develop a series of “Giga Projects” for boosting the non-oil sector.

Development of transport infrastructure such as 6 lines of Riyadh Metro, upgrading of King Abdulaziz International Airport, Jeddah and others will improve the connectivity in the country.

Rising GDP Contribution from Real Estate as per Vision 2030: Vision 2030 considers Real Estate industry as an important factor for development. Government has launched several initiatives for increasing home ownership under vision 2030. In 2018, the maximum loan-to-value mortgage rate has increased across Saudi Arabia; this resulted in applicants able to raise 90% of a property’s value through a mortgage which was previously limited to 85%. This move was made with aim of increasing the value of mortgage market to USD 134 billion by 2020 which was valued to be USD 80 billion in 2018. Another aim of government is to reduce the average ratio between house price and per capita income to five times and increase the percentage of home ownership among Saudi citizens to 60% by 2020. As per the National Transformation Plan, government aims to raise real estate’s contribution to GDP from 5% in 2016 to 10% in 2020. By 2030, its ambition is to see nationwide home ownership levels at 70%.

saudi-arabia-real-estate-market_infographic

Construction of Giga Projects: As per Vision 2030 initiative Saudi Arabia has undertaken development of several giga projects. Qiddiya Project is one such project. It will encompass entertainment, sports and cultural attractions within an area of approximately 100 Sq Km and will be world’s largest entertainment city. By 2030, the number of annual visitors to Qiddiya is expected to reach 17 million in the entertainment sector, 12 million in the shopping sector and 2 million in the hospitality sector. Another project is Red Sea Project which is a tourism destination encompassing 50 islands and will be developed in partnership with leading hotel operators. Amaala Project is another such project. The project aims to be the Riviera of the Middle East, featuring a range of hotels, private villas, retail and cultural offerings.

Growth in Tourism Sector will Boost the Demand for Hotels: The Saudi Tourism sector contributed SAR 88.2 billion in GDP in 2017, which grew by 8.2% from 2016. It is expected this will increase to SAR 138 billion by 2023 with an average growth of 7.0%. International arrivals to the Kingdom are expected to increase from 17.7 million in 2018 to 23.3 million by 2023 showing a growth of 5.6% per year. Religious tourism will continue to be the biggest contributor with a goal of 30 million pilgrims to the Kingdom by 2030, an increase of 11 million from the 19 million Hajj and Umrah pilgrims that visited the country in 2017. Leisure tourism will also gain traction with various projects and initiatives under the Vision 2030 reform plan. Domestic tourists were about 47 million in 2018 which is expected to exceed to 70.5 million by 2023, thus showcasing a sharp growth in the local tourism. This will drive up competition in the country’s hotel scene, with projected growth in domestic and international visitors set to boost occupancy levels.

Analysts at Ken Research in their latest publication “Saudi Arabia Real Estate Market Outlook to 2025 – By Retail Real Estate Market (Super-Regional Malls, Regional Malls and Community Centre), By Hotel Real Estate Market (3 Star, 4 Star, 5 Star and Other Hotels),By Office Real Estate (Premium Offices Grade A and Grade B) and Residential Real Estate Market (Apartment, Villas, Traditional Houses and Others)” observe that the real estate market in Saudi Arabia will increase owing to various government initiatives to increase the contribution from non oil sectors in economy. Moreover, it is expected that various construction activity will take place by public and private partnership; foreign investors will enter the market as it is one of the most growing countries in the GCC and Middle East region. The maximum growth will happen in supply of hotel rooms which are expected to witness a seven year CAGR of 10.0% during the forecasted period 2019-2025.

Key Segments Covered:-

Saudi Arabia Retail Real Estate Market

By Type:

Super-Regional Malls

Regional Malls

Community Centres

By Geography:

Riyadh

Jeddah

DMA

Makkah

Saudi Arabia Hotel Real Estate Market

By Type:

3 Star Hotels

4 Star Hotels

5 Star Hotels

Others (Less than 3 Star Hotels)

By Geography:

Riyadh

Jeddah

DMA

Makkah

Saudi Arabia Office Real Estate Market

By Type:

Premium Office

Grade A Office

Grade B Office

By Geography:

Riyadh

Jeddah

DMA

Saudi Arabia Residential Real Estate Market

By Type:

Apartments

Villas

Traditional Houses

Floor in a Villa

Others (Floor in a Traditional House)

By Geography:

Riyadh

Jeddah

DMA

Makkah

Key Target Audience

Real Estate Developers

Independent Investors

Real Estate Consulting Companies

Third Party Real Estate Companies

Independent Architects

Government Associations

Government Agencies

Time Period Captured in the Report:

Historical Period – 2013 – 2018

Forecast Period – 2019F – 2025F

Companies Covered:

Property Finder (Including JRD Group)

Emerging Market Property Group (Bayut.SA)

Aqarmap

Dar Alarkan Real Estate Development Co.

Taiba Investment Company

Jabal Omar Development Company

Kingdom Holding Company

Saudi Real Estate Company (Al-Akaria)

Arriyadh Development Co

Ewaan Global Residential Company

Al Saedan Real Estate Company

Key Topics Covered in the Report

Executive Summary

Research Methodology

Real Estate Market Scenario in Saudi Arabia, 2013-2018

Macro-Economic Overview of Saudi Arabia

Overview of Retail in Saudi Arabia

Factors Inflecting Retail Real Estate Sector in Saudi Arabia

Current and Future Retail Demand and Supply, 2013-2025F

Supply and Demand Gap, 2013-2025F

Saudi Arabia Retail Real Estate Market Regional Landscape

Retail Market Outlook, Opportunities and Future Development Trends

Saudi Arabia Retail Market Future Outlook

Saudi Arabia Key Upcoming Malls

Future Trends in Retail Market

Saudi Arabia Retail Market Success Factors Recommendations

Saudi Arabia Retail Space Key Features and Characteristics

Saudi Arabia Case Studies of Major Retail Centers

Saudi Arabia Hotel Real Estate Market Overview

Factors Influencing Hotel Sector in Saudi Arabia

Saudi Arabia Current and Future Hotel Supply and Demand, 2013-2025F

Supply and Demand Gap, 2013-2025F

Saudi Arabia Hotel Real Estate Market Regional Landscape

Saudi Arabia Hotel Market Outlook, Opportunities and Future Development Trends

Key Features and Characteristics of Hotels in Saudi Arabia

Saudi Arabia Key Expected Hotel Projects

Saudi Arabia Hotel Market Potential Gaps

Saudi Arabia Recommendations Regarding Success Factors of Developing Hotels

Saudi Arabia Case Study of Major Hotels

Saudi Arabia Office Real Estate Market Overview

Factors Influencing Office Sector in Saudi Arabia

Saudi Arabia Current and Future Office Supply and Demand, 2013-2025F

Supply and Demand Gap, 2013-2025F

Saudi Arabia Office Real Estate Market Regional Landscape

Saudi Arabia Offices Key Features and Characteristics

Saudi Arabia Key Expected Upcoming Office Projects

Saudi Arabia Office Market Gap Analysis

Saudi Arabia Office Market Recommendations Regarding Success

Saudi Arabia Office Market Future Outlook, Opportunities and Development Trends

Saudi Arabia Co-Working Office Space Snapshot

Saudi Arabia Case Studies of Major Office Complexes

Factors Influencing Residential Sector in Saudi Arabia

Supply-Demand Gap, 2018

Saudi Arabia Residential Real Estate Market Regional Landscape

Saudi Arabia Residential Real Estate Market Gap Analysis

Saudi Arabia Recommendation Regarding Success Factors of Developing Residential Market

Saudi Arabia Residential Market Future Outlook, Opportunities and Development Trends

Saudi Arabia Key Upcoming Residential Projects

Key Features and Characteristics of Residential Sector in Saudi Arabia

Existing Housing Typologies in Saudi Arabia

Saudi Arabia Construction Costs, 2018

Saudi Arabia Online Real Estate Market Snapshot

Saudi Arabia Real Estate Online Portals Business Model

Saudi Arabia Online Real Estate Major Players ( Property Finder (Including JRD Group, Emerging Market Property Group (Bayut.SA) and Aqarmap)

Saudi Arabia Real Estate Market Competition Scenario

Saudi Arabia Real Estate Market Major Real Estate Developers Profiles (Dar Alarkan Real Estate Development Co., Taiba Investment Company, Jabal Omar Development Company, Kingdom Holding Company, Makkah Construction and Development Co)

For More Information On The Research Report, Refer To Below Link:-

https://www.kenresearch.com/manufacturing-and-construction/real-estate/saudi-arabia-real-estate-market-outlook/286578-97.html

Related Reports by Ken Research:-

https://www.kenresearch.com/manufacturing-and-construction/real-estate/australia-real-estate-market-outlook/251375-97.html

https://www.kenresearch.com/manufacturing-and-construction/real-estate/hungary-real-estate-market/149544-97.html

https://www.kenresearch.com/manufacturing-and-construction/real-estate/singapore-real-estate-market/215823-97.html

Contact Us:-

Ken Research

Ankur Gupta, Head Marketing & Communications

Ankur@kenresearch.com

+91-9015378249

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