Residential Market Dynamics in Riyadh, Jeddah, Dammam and Al Khobar
An evolving population structure, family dynamics and advancing home-buyer preferences on the backdrop of facilitative government initiatives have culminated in a rapidly-changing residential sector. The backdrop of this major change is most visible in the major cities of Riyadh, Jeddah and Dammam Al Khobar (DAK), though by no means exclusive to them.
A healthy residential real estate market is a critical enabler of a vibrant economy. Many significant changes have been spear-headed by the government in the last five years to create a housing ecosystem through the Ministry of Municipal Rural Affairs & Housing and attracting private investment through easing coordination with government entities, simplifying legislative work and partnership structures. Additionally, with change occurring across all dimensions of life in KSA, it is no different for the residential market; as highlighted by shifting home-buyer preferences. This presents a sizeable opportunity for developers to capitalise on, though it does require a different approach than what has worked previously. It is important to think about the market on where it will be in the future, rather than how it has performed in the past. It also provides opportunities for significant scale, something that was seldom possible in the past.
To highlight the above opportunity, Colliers explores in this paper demand dynamics of the residential sector across Riyadh, Jeddah and Dammam & Al Khobar (the Kingdom’s largest cities). We highlight emerging trends and major demographic indicators. The report also presents a snapshot of major confirmed/institutional supply and expected market movers, identifies addressable market gaps within each of the major cities and concludes with available opportunities.