2023-05-16-莱坊-The_Saudi_Report_2023_75页_32mb

Residential Market

• Ownership and Migration: Development of 67% home ownership target by 2030; internal migration driven by job creation, boosting demand in cities like Riyadh and Dammam. 68% of interviewees consider themselves temporary residents (planning to return to hometowns).
• Prices and Affordability: Riyadh and Jeddah property prices rose by 27.5% and 6.5% respectively (2022). High prices and limited financing options hinder ownership for younger demographics (18-35 years). Average home price multiples exceed income by 13-15 times.
• Branded Residences: High demand (69% of survey 1) with strong appeal to international investors (GCC HNWI). Limited supply remains untapped opportunity despite high aspiration.
• Giga Projects: Significant ongoing investment (US$1.1T+ since 2016). Al-Ula, Neom, and Red Sea Project top preferred investment destinations, reflecting strong foreign investor interest.

Non-Residential Markets

Healthcare

• Supply and Quality: 19,000 new hospital beds planned (US$13.8B cost). 54% prefer private hospitals for quality considerations. 40% travel abroad for treatment citing higher standards or costs.
• Demand: Strong demand for secondary and specialized care; emphasis on international facilities and expertise.

Education

• Schooling Trends: 54% favor international curricula; demand for premium private schooling rising with income. Jeddah and Riyadh lead educational demand, while Taif emerges as top secondary destination.
• Investment: Expanding international education appeal; GCC HNWI show high interest in K-12 education abroad.

Hospitality and Tourism

• Growth Trajectory: Over 310,000 new hotel rooms planned by 2030, driven by international brands and tourism strategy. Airport development and cultural initiatives enhance visitor experience.
• Hospitality Demand: Jeddah Central ranked second in hotel demand; increased focus on experiential offerings and religious tourism. Airline developments support growth.

Retail

• Shopping Trends: Experiential retail on the rise, with lifestyle centers favored by younger consumers; online shopping adoption increasing especially among Gen Z. Saudi retail market expected to bridge budget real estate and international influence.

Financial Outlook

• Investment Priorities: GCC HNWI allocated 56% to real estate, with 83% interest in Saudi properties. Giga project investments rising by 21 pp since 2022. Demand for residential and retail properties particularly strong from GCC investors.

Key Highlights Across Sectors

• Ownership Trends: 40% of surveyed Saudis anticipate buying 2023; Neom ranks highest in international interest (34%). Rental yields may decline due to increasing home ownership.
• Giga Projects Appeal: Focused development on luxury offerings; challenge remains balancing supply with demand across diverse income groups.
• Market Saturation Risk: High risk of supply outstripping demand in residential and hospitality sectors, especially at premium price points.

The report underscores significant growth potential across multiple sectors alongside challenges of affordability and market depth, positioning Saudi Arabia as a key destination for international investment and development.