The Saudi Arabia real estate market shows promising growth from Vision 2030
Foreign investors looking to invest in the Saudi Arabian real estate market have high expectations due to the multiple announcements over the last year relating to Vision 2030. The Real Estate Barometer study, conducted in by YouGov and Restatex Cityscape Riyadh show promising results for the Saudi Arabia real estate market.
Respondents of the study were asked the effects they believed would occur as a result of Vision 2030. With 50 percent of respondents expecting Vision 2030 to increase the real estate market development in Riyadh, specifically in residential properties (33%), whilst 43% expect an increase in real estate development in Jeddah and Mecca. Respondents also believed that the Vision 2030 would increase retail/commercial units and enable foreign direct investment in Saudi Arabia.
The results also showed that majority of respondents plan to purchase a property in the Kingdom in the next year, while 23% already owned property in the Kingdom.
Ahmed Zakaria, Exhibition Director at Restatex Cityscape Riyadh said: “It’s clear that there is a significant number of investors and home buyers interested in investing in real estate in the Kingdom and they’re looking at plans set by government, like Vision 2030, as ways to boost real estate investment development.”
The survey also highlighted that affordability is a primary issue in KSA, with 41% claiming there is a lack of affordable units available.
In the residential property segment, the market is expected to decrease in prices, with 60 percent of respondents expecting significant decrease in sales and rental prices of properties in Saudi Arabia next year.
Respondents also indicated that location was important. Fifty percent of respondents said they were searchin
g for properties in the Downtown City Centre area, whilst 22% were searching for a compound or gated community in the Downtown City Centre area where commercial units were present.
“The research tells us that respondents seek residential properties that are in close proximity to place of work/business (41%), places of worship (38%), educational facilities (38%) and healthcare facilities (35%). In addition, quality of house (86%) and value for money (83%) are some of the top factors investors and home buyers look for when purchasing property,” added Zakaria.
“The 2017 results show Saudi Arabia to be an attractive market among GCC investors with Vision 2030 well recognized to be a catalyst for exciting future developments. The research also shows addressing affordability, financing options and availability of property information will be key for industry professionals as the Kingdom continues to expand its real estate market appeal,” commented Kailash Nagdev, Managing Director for YouGov in the Middle East region.