SPECIAL REPORT
KSA REAL ESTATE MARKET OUTLOOK RESETTING IN THE NEW NORMAL The outlook for Saudi Arabia’s real estate sector remains relatively strong across all segments, despite the disruptions caused by the pandemic. While the recovery in economic activity and the resultant resurgence in business confidence will help underpin performance in Saudi Arabia's real estate markets, the pandemic has undoubtedly accelerated already shifting fundamentals in sectors such as the offices, retail and industrial logistics sectors. CBRE explores some major themes, which we feel set to define key real estate sectors going forward.
Residential
Ministry of Rural Affairs & Housing leading the transformation and growth of the residential sector, by offering financing and housing solutions for both investors and end-users, to support the Vision 2030 objective of increasing the homeownership rate to 70% by 2030. The impact of COVID-19 has shed light on staff and labour accommodation projects, impacting space requirements and increased focus on filling the market gap for a quality product featuring sufficient facilities and amenities. Millennials emerging as a key consumer class, with the reconfiguration of residential spaces expected as well as increased demand for digitally enabled homes and larger unit sizes to accommodate home offices. Millennials emerging as a key consumer class, with the reconfiguration of residential spaces expected as well as increased demand for digitally enabled homes and larger unit sizes to accommodate home offices. Increased demand witnessed across major markets for smaller residential typologies, with an increased focus on community living environment. Developers are responding by introducing a greater proportion of apartments and townhouses within their megaprojects.
RETAIL PEOPLE . JUL - SEP 2021 .10
