According to a new report from Knight Frank, the total value of real estate and infrastructure projects in Saudi, launched since the inception of the National Transformation Plan in 2016, has exceeded $1.2 trillion. The report reveals that commissioned projects account for $250 billion, while the remaining projects are currently underway.
The analysis focuses on projects across the western region of Saudi Arabia, as well as Riyadh and other provinces. The Western region alone is expected to deliver approximately $687 billion worth of real estate projects by the end of the decade, playing a central role in the Kingdom’s transformative vision.
With the deadline for Vision 2030 approaching, the report indicates a 30% increase in planned residential units, totaling 660,000 units. This rise is expected to address the demand for housing and help stabilize the declining volume of home sales caused by rising prices.
The paper also sheds light on the steady growth of the office pipeline, with 6 million square meters of office space planned. Notably, Riyadh faces a shortage of prime Grade A office space, unlike other global centers that continue to recover from the pandemic. Additionally, the commercial market is set to witness the development of 5.3 million square meters of retail space and the introduction of 289,000 hotel rooms. These initiatives align with Saudi Arabia’s goal of welcoming 100 million visitors by 2030, significantly increasing its ranking as a top tourist destination.
Giga projects
Giga projects in the Western region, including NEOM, the $500 billion supercity, have garnered significant attention. As progress continues, NEOM has already awarded $70 billion worth of projects, with 45% of them already completed. The challenge for developers lies in meeting the demands of domestic buyers, as two-thirds of them have home budgets under SAR 1.5 million. Bridging the gap between demand and price points will be a crucial consideration moving forward.
Read more: Riyadh invests in infrastructure ahead of Expo 2030
Knight Frank emphasizes the pivotal role of Riyadh in Saudi Arabia’s transformation, with the capital accounting for 18% of all real estate and development projects. Riyadh’s ambitious plans include the construction of over 241,000 homes by 2030, along with 3.6 million square meters of office space. The ongoing King Salman Park project, valued at $9 billion, is highlighted as one of the most advanced Giga projects in the city.
Riyadh’s development pipeline, valued at $229 billion, represents a significant portion of the planned $1 trillion total investment to transform the capital. The city’s aspiration to host the 2030 World Expo further accelerates its transformation and strengthens its position as a global financial and commercial hub.
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