Tuesday, Jan 31, 2023
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Saudi cities will need 1 mn new residential units by 2030

Saudi Arabia residential units-IFM_Image
There is a growing demand in cities like Riyadh, Jeddah and Dammam and Al Khobar

The Kingdom of Saudi Arabia will need to build 1 million new more residential units by 2030, according to real estate firm Colliers. There is a growing demand in Saudi cities such as Riyadh, Jeddah and Dammam and Al Khobar. Around 63 percent of this is expected to be generated by new Saudi and non-Saudi households.

According to the report, nearly 48 percent of the demand is expected to be generated in the capital city of Riyadh. The report further reveals that during the forecasted period, around 101,000 residential units are expected to be introduced into the kingdom by the state. Around 71 percent will be supplied by the Ministry of Municipal Rural Affairs & Housing projects.

Imad Damrah, Managing Director at Colliers Saudi Arabia told the media, “Driven by factors including growing considerations towards family planning and general cost of living-to-affordability dynamics, a major demand driver for new households is the gradual decrease in average household size. As the total number of households increase across the three major cities, average household size is expected to decrease from 5.8 to 5.3 by 2030.”

The Kingdom real estate price index increased by 0.4 percent during the second quarter of 2021, according to statistics issued by the General Authority for Statistics. The Kingdom also recorded a 0.8 percent increase in residential real estate prices. However, the prices of commercial and agricultural properties declined by 0.5 percent and 0.2 percent respectively.

According to a Knight Frank report, Saudi Vision 2030 has led to new projects in real estate and infrastructure worth $1 trillion.

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