Saudi Arabia is set to introduce more than 1 million new homes by 2030 as part of its Vision 2030 initiative, which aims to strengthen the economy and make housing more accessible. Since 2016, 1,048,000 residential units have been announced, with 4% of those homes already completed, according to Knight Frank’s Saudi Giga Projects Report.
Boosting Homeownership
A key goal of the initiative is to raise homeownership rates from the current 64% to 70% by 2030. Over the past year, the number of announced homes has surged by 58.5%, driven by a mix of public and private sector projects aimed at expanding the housing market.
Real Estate Boom
Saudi Arabia’s real estate sector has seen a total investment of USD 1.3 trillion since 2016, with USD 164 billion in awarded contracts. One of the major contributors to this growth is NEOM, a flagship project, which alone accounts for USD 28.6 billion in investment.
However, rising property prices in cities like Riyadh have presented challenges. Apartment prices in the capital have surged by 58% over the last three years, with villa prices increasing by 38%. Riyadh now has higher property prices than Jeddah, with an average of SAR 5,155 per square meter.
Increased Residential Transactions
The first half of 2024 has seen a 41% jump in residential sales and a 48% increase in transaction value, totaling SAR 77.6 billion. Government-backed programs like Sakani and Wafi have been instrumental in encouraging more Saudi citizens to buy homes.
Vision 2030 and Global Ambitions
Saudi Arabia’s Vision 2030 is positioning the Kingdom as a global leader in real estate and tourism, as it prepares to host the 2030 World Expo. This event is expected to bring USD 7.8 billion in economic activity to Riyadh.
This article was posted on saudimoments
