Giga Saudi projects to help boost real estate market: JLL
The Saudi government’s mammoth projects and other initiatives under Vision 2030 have helped drive growth across the Kingdom, which will positively impact the property market in 2022, JLL says in its property outlook.
JLL, a leading professional services firm specializing in real estate, investment management and development advisory services, shared information on what’s on the horizon for the Saudi real estate market in 2022 during his event on real estate prospects in Riyadh.
Under the theme “A reset for the real estate sector”, Thierry Delvaux, CEO of JLL Middle East, Africa and Turkey, and JLL experts gave an overview of the outlook for the real estate market, a deep dive into the Saudi market of construction, and shared ideas about tomorrow’s workforce.
Sharing the macroeconomic overview at the event, Delvaux commented: “Globally, the pandemic has given new impetus to many trends and themes that were already reshaping our cities – from changing work preferences and lifestyle to the central role of the digital economy and the need for more resilient, inclusive and sustainable communities.
“In Saudi Arabia, the Saudi government has actively launched giga initiatives and projects, under Vision 2030, to create a vibrant society, with more lifestyle developments. This has helped drive growth across the country. Kingdom, and we expect this will continue to have a positive impact on the property market in 2022 as well,” he said.
The JLL event in Riyadh follows the company’s recent announcement that it has appointed a non-executive board comprised of leading business figures in Saudi Arabia. The newly created Board of Directors will assist JLL in driving its medium to long-term strategic direction in Arabia, while advising it on key business developments for the company in the Kingdom.
Joining JLL will be Jehad Alkadi, Managing Director of Arriyadh Development Company, as Chairman of the Board; Hawazen Nazieh Nassief, Vice President ESG and External Affairs, National Energy Services Reunited Corporation (NESR); Mohammed Al Khars, Chairman of Innovest Properties; and Musaab Al-Muhaidib, CEO of Al Muhaidib Entertainment Ventures.
Key insights shared by JLL at the real estate outlook event included:
• Overview of the real estate market in Saudi Arabia: The government has launched various initiatives in recent years to increase the number of owners in the Kingdom. In the near term, strong underlying demand for housing among Saudis should support prices on an upward trajectory – although the upcoming supply pipeline is expected to slow price growth over the next 12 months.
Additionally, forecasts from Oxford Economics show that in 2022, consumer spending will grow by 3.4% annually and retail sales will grow by 2.2%. If these projections hold, both will broadly return to levels seen earlier in 2019, which should in turn support the retail sector in Saudi Arabia, aided by upcoming entertainment events.
• Development towards Vision 2030: The Saudi Vision aims for a significant increase in the population of Riyadh over the next 10 years, from its current level of around 7.5 million to between 15 and 20 million by 2030 The only way that this massive increase in population can be accommodated sustainably is through an increase in density, which requires a corresponding increase in demand for mid-rise and high-rise multi-family housing. The need to increase residential densities is also at the heart of the government’s bold vision to make Riyadh one of the most livable cities in the world by 2030.
• Key trends in construction costs for 2022: Saudi Arabia is working towards its established Vision 2030 program, supported by the continuation of the Kingdom’s associated gigaprojects. Neom, The Red Sea Project and AMAALA offer new ownership opportunities on the West Coast. At the same time, it allows the creation of jobs in construction and development, employment opportunities in the hospitality sector and investments in infrastructure and renewable energies. Planned projects across the Kingdom underscore the economic, social and cultural diversification effort, aligned with the 2022 budget announcement with a focus on investments in the education, health and social development sectors.
• Preparing for tomorrow’s workforce: While the Covid-19 crisis has caused a radical paradigm shift in the way people work and live, it also offers a unique opportunity to shape a better future of work . Successful future companies will be those that are bold and proactive in shaping their workplaces around the changing needs and preferences of an evolving workforce, where solutions are tailored to meet individual employee needs and help to thrive. – TradeArabia Press Service
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