沙特房地产预测2023-21页_1mb

Executive Summary

Saudi Arabia's real estate market is experiencing a post-COVID recovery, driven by robust GDP growth, increasing tourism demand, and government infrastructure investments. Key developments include rising demand for prime properties like Grade A offices and logistics facilities. The hospitality, residential, office, retail, and industrial sectors show varying trends, with improvements in occupancy and rates led by tourist influx. Economic indicators and consumer preferences are shaping market dynamics, with predictions favoring growth in logistics and high-quality developments.

KSA Real Estate Market Performance

Saudi Arabia's economy grew by 8.6% in 2022, with projected moderation to 3.7% in 2023 and 2.3% in 2024. Tourism and government spending are key drivers, boosting real estate demand. Overall recovery is supported by ease of travel, with prime markets stabilizing or growing.

Hospitality Market

Hospitality shows strong recovery, with improved average daily rates and occupancy rates. For example, Riyadh's occupancy reached 76% in March 2023, and Jeddah's was 59% in May. Tourism is expanding, aiming to reach 100 million visitors annually by 2030, underpinned by initiatives like visa simplifications.

Residential Market

Residential sector features rising sales prices and strong demand for apartments from Saudi nationals. Sales volumes for villas and apartments increased, with shifts towards affordable options and urban migrations. Big data analysis indicates population movements to areas like Riyadh North, influencing market allocation.

Office Market

Office demand is fueled by government efforts to position cities like Riyadh as regional hubs, particularly for Grade A spaces. Employment in financial services grew by 12% year-on-year, supporting occupancy. Landlords offer incentives, but competition from new developments may pressure lower-grade stock.

Retail Market

Retail sales volume increased by approximately 4% in 2022, with moderate annual growth forecast. Prime malls maintain occupancy, but rents softened by about 1%. Experiential retail is gaining importance, with categories like food and beverage seeing higher demand to attract consumers.

Industrial and Logistics Market

Industrial demand remains stable for prime stock due to limited high-quality inventory. Expected increases in logistics infrastructure projects could drive demand for warehouses in the coming years. Market shifts towards flexible, multi-functional facilities to meet evolving needs.
Key contacts: Stefan Burch, Oliver Morgan, Jaime Liversidge, Dunia Joulani, Manika Dhama.