Saudi real estate sector remains centre for long-term investments

MoneyReal Estate
By Amwal Al Ghad English
Saudi real estates
The Saudi real estate market is playing a major role in development amid growing demand triggered by several factors, including the government initiatives to promote economic diversification and increase in the number of Saudis wanting to secure their own homes, asserts Hani Khashoggi, founder, Esrar Real Estate Development.
The Saudi government targets to raise the home ownership rate in the Kingdom by 52 per cent by 2020 and 70 percent by 2030, and is mainly focusing on supporting real estate as one of the key drivers to diversifying the economy as well as meeting the needs of a growing population, he told The Saudi Gazette on Monday.
These factors are boosting the demand for real estate projects that cater to the needs of the new generation of citizens.

In line with these goals, both the public and private sectors are implementing large-scale housing and infrastructure developments supporting the real estate market through mega-projects, such as the Red Sea, Qiddiya and Neom City in the Kingdom.

The massive government spending on real estate development reflects the importance of this sector in the Kingdom’s efforts toward diversifying the sources of economic growth, which then opens new opportunities for long-term investments.

Moreover, under the objectives of the Saudi Vision 2030, more than 850 projects are being implemented in tourism, hospitality, trade, retail, logistics, and entertainment with estimated value exceeding $160 billion, increasing the need for integrated real estate solutions covering both infrastructure and superstructure.

In pursuit of the kingdom’s ambitious strategies, more real estate developers are expected to enter the market to respond to the growing demand and meet the requirements of other vital sectors such as tourism and hospitality, which are witnessing growth as the Kingdom looks to welcome more visitors from all over the world in the coming years, he further said.

Madinah and Makkah are witnessing robust real estate activities, particularly in hotel and residential units thanks to the newly launched initiatives dedicated to meet the needs of Haj and Umrah visitors and provide them with top quality services.

The substantial growth in real estate sector is reflected in the increased volume of housing loans and finance solutions exceeding SR79 billion ($21 billion), a growth of 168 per cent compared to last year.
Through the diversification initiatives under the “Saudi Vision 2030” and the fast-paced developments in the Kingdom that have reshaped young Saudis’ aspirations in terms of lifestyle, welfare and opportunities, the founder of Esrar Real Estate Development is strongly confident that the real estate sector will continue to play a key role in this drive toward transformation and improve the lives of both citizens and residents.
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