Prime Highlights:
Saudi Arabia’s real estate sector is evolving under the Vision 2030 reform agenda, which is driving growth across affordable housing and luxury developments.
The Saudi government is playing an active role in meeting housing demands, ensuring affordable housing, and creating favorable conditions for both developers and investors.
A growing population and rapid urbanization are fueling the need for more housing in the Kingdom, requiring substantial funding and development efforts.
Key Background:
Saudi Arabia’s real estate market is undergoing significant transformation, with developments spanning from affordable housing to luxury residences, driven by the Kingdom’s Vision 2030 reform agenda, according to Yousef A. Al-Shelash, Chairman of Dar Al Arkan. Speaking at the annual World Economic Forum in Davos, Al-Shelash highlighted the pivotal role of the Vision 2030 in shaping the country’s real estate sector, noting that the reforms have elevated both the sector’s approach and regulatory standards.
As one of the world’s top 20 economies, Saudi Arabia’s real estate market reflects its broader aspirations. Al-Shelash emphasized the Kingdom’s determination to meet global standards, stating that the Vision 2030 not only focuses on enhancing the economy but also facilitates the growth of the real estate sector by introducing new regulations aimed at attracting both developers and investors.
Central to the Vision 2030 is a focus on providing affordable housing and improving living conditions for Saudi citizens. Al-Shelash acknowledged the government’s active role in ensuring these objectives are met, addressing the growing demand for housing driven by the Kingdom’s expanding population and rapid urbanization. He further noted that substantial funding and development efforts are essential to meet these demands.
In addition to affordable housing, the demand for high-end real estate, especially from ultra-high-net-worth individuals, is also on the rise. Al-Shelash cited the interest from foreign investors looking to purchase property or invest in Saudi Arabia, expressing confidence that regulatory changes to facilitate such investments will soon be implemented.
Al-Shelash also touched on the international expansion of Dar Al Arkan, which listed on the London Stock Exchange in 2023. He underscored the strategic importance of this move, positioning the company within one of the world’s most regulated markets, which enhances its ability to collaborate with global partners. Sustainability, he concluded, is central to the Kingdom’s development strategy, with green practices and technology at the forefront of real estate projects, both domestically and internationally.
