Market Research & Statistics in Saudi Arabia Real Estate Industry: Ken Research

How The Saudi Arabia Real Estate Market Is Positioned?

The real estate market in Saudi Arabia is currently at its growth stage. The real estate market has been categorized into four sub-categories which include residential real estate, office real estate, retail real estate and hospitality real estate market.

The Real Estate Market in Saudi Arabia was facing crisis due to the shortage of housing spaces, lack of mortgage law and other factors. It was estimated that Saudi Arabia needed at least 1.5 Million of housing units over the next few years to stem the shortage in affordable housing. This led to government reforms and the first mortgage law was implemented in 2012. The government also launched initiatives to build ~ units of housing over the next few years. The government introduced various schemes such as Vision 2030 for increasing the foreign investment in the Saudi Real Estate Market. The main focus of government in this was to increase the presence of affordable housing for the Saudi people.

Saudi Arabia Real Estate Market Research Report

The market faced various challenges due to fluctuation of oil prices as Saudi’s GDP is highly dependent on oil. The government has implemented various policies and initiatives in order to boost other industries and to reduce the reliance on oil for GDP growth. In 2016, Capital Market Authority of Saudi allowed formation of Real Estate Investment Trade Funds (REITs) on the local stock exchange with the aim of increasing increase real estate contribution to GDP from ~% to ~ %. Further, in 2016 the Saudi Arabia government introduced ‘White Land Tax” of ~% on undeveloped urban land. The focus has been on increasing the real estate participation in the GDP.

How Is The Saudi Arabia Retail Real Estate Market Positioned?

Retail industry in Saudi Arabia, Kuwait, Oman and the UAE is expected to increase at a CAGR of over ~% during 2019-2024. The main factors affecting this growth will be rise in consumerism, favorable demographics, increase of population, strong growth in tourism and increase in per capita income. Saudi Arabia is the largest country in Middle East having a population of ~ Million as of 2018, out of which one-third of the population consists of expatriates. In 2018, there were ~ million online shoppers in Saudi Arabia, with an additional ~ million users expected to be shopping online by 2022.

Middle Eastern consumers being more demanding, educated, price-savvy and connected increasingly require memorable shopping experiences, access to the latest products and expect brands to offer curation, personalization and storytelling.

Saudi Arabia retail real estate industry is growing due to changes in the new trends and opening up of economy to attract foreign investment. The market was affected negatively due to the implementation of VAT however it is a temporary issue and the future seems to be bright due to increase in the consumer expenditure. The retail spending increased from SAR ~ billion in 2013 to SAR ~ billion in 2018 registering a CAGR of ~% during the period.

What Are The Factors Affecting Retail Real Estate Sector In Saudi Arabia?

Population of Saudi Arabia: The rise in population with a strong growth trajectory in tourism and per capita income are the major reasons for the upward growth of the retail sector in all the states.

Introduction of VAT: Saudi Government implemented a VAT of ~%, in 2018. This has caused a shift in consumer behavior. This impacted negatively on market as the consumers in Saudi are cost-conscious.

Retail Spending Trends: The rise in per capita disposable income in the country has positively impacted an individual’s expenditure on food and non-food products during the review period. This has enhanced profit for a broad category of retailers ranging from single store retail outlets to those located in malls.

Current And Future Retail Demand And Supply

The gross leasable area in organized retail supply for Saudi Arabia (including cities Riyadh, Jeddah, Dammam Metropolitan Area and Makkah) has escalated from ~ million square meters during 2013 to ~ million square meters in 2018 having a growth of ~% during the period. Riyadh region witnessed the maximum growth in area supply of ~% during the period; on the other hand Makkah region had the least growth of ~% during the period. The supply of retail malls has grown over the years due to the completion of various malls and community centers in the major cities such as Malqa Center, Telal Center Riyadh Park, Riyadh Gate, Sidra, The Dheyafah, Panorama Mall, Al Qalam Mall and others. The retail space demand in Saudi Arabia is having mix reaction to the changing retail scenario in Saudi Arabia. The total retail space demand was about ~ million square meters in 2013 and it increased to ~ million square meters in 2018, thus witnessing average growth of ~% over the review period. Riyadh region witnessed the most growth during the review period with average growth of ~% and least growth was witnessed in Makkah of ~%.

The average overall occupancy has remained stable over the years between ~% – ~% across Saudi Arabia. In 2013, the occupancy rate for retail spaces in Saudi Arabia was estimated to be around ~% which decreased by ~ percentage point and was valued at ~ % in 2018.

Key Topics Covered in the Report

Real Estate Market Scenario in Saudi Arabia, 2013-2018

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:

Saudi Arabia Real Estate Market

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Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

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