Standard & Poor's Global S&P Global and Knight Frank Knight Frank have predicted that the commercial real estate sector in Saudi Arabia will see exceptional growth in the coming years, driven by the country's major socio-economic transformations.Commercial real estate in Saudi Arabia will see exceptional growth in the coming years, driven by the country's major socio-economic transformations and the growing interest of local and international brands in the Saudi retail market.
In its latest report, Knight Frank has indicated that the Commercial real estate sector will see exceptional growth over the coming years. <In its latest report, Knight Frank noted that the supply of commercial real estate in Riyadh is set to grow by 50% by 2027, while the commercial real estate market in Jeddah could see further expansion of up to 75% over the same period. This increased momentum reflects the growing demand for commercial space from various economic sectors.
Standard & Poor's said in a recent report that the residential sector is also showing signs of strength, with large numbers of young Saudis moving to major cities in search of job opportunities, boosting demand for residential units.
S&P said in a recent report that the residential sector is also showing strong signs of strength, with large numbers of young Saudis moving to major cities in search of job opportunities. The General Real Estate Authority (GRA) predicted that the size of the real estate market in the Kingdom will reach $101.62 billion by 2029, with an expected annual growth rate of 8% starting in 2024, reflecting the robustness of the market and the diversity of investment opportunities within it.
New York-based Knight Frank said in a recent report that the residential sector is also showing signs of strength, with young people moving to major cities for work, boosting demand for residential units. Knight Frank published an analysis in June highlighting the rapid growth in the commercial sector, noting that average rents for Class A office space in Riyadh reached $719.95 per square meter by the end of the first quarter of this year, an increase of 23% compared to the same period last year, indicating high demand and improved returns on investment in this type of asset.
Night Frank published an analysis in June highlighting the rapid growth in the commercial sector, noting that average rents for Class A office space in Riyadh reached $719.95 per square meter by the end of the first quarter of this year, an increase of 23% compared to the same period of the previous year. Standard & Poor's believes that the Saudi commercial sector has strong growth potential, but stipulates that in order to achieve this growth, careful planning and strategic location of real estate development projects will enable shopping center and mall operators to achieve long-term sustainable success.
S&P believes that the development of the mall and shopping center sector in Saudi Arabia is one of the most important factors in the development of the real estate sector. The development of the real estate sector, both residential and commercial, is one of the strategic objectives of the Kingdom's Vision 2030, as part of its efforts to diversify the economy away from oil dependence and strengthen Saudi Arabia's position as a global economic and tourism center.
In light of these positive indicators, it seems that the Saudi real estate market is poised for a new phase of expansion and growth, supported by structural changes in the economy and society, along with an attractive investment environment that encourages the launch of more diversified real estate projects.
The Saudi real estate market is poised for a new phase of expansion and growth, supported by structural changes in the economy and society, along with an attractive investment environment that encourages the launch of more diversified real estate projects.
