RIYADH: Following the launch of Saudi Arabia’s Vision 2030 in 2016, the Kingdom is set to become the largest construction site in the world with a total investment of SR41.3 trillion ($1.1 trillion) in infrastructure and real estate projects, according to the global real estate agency. Knight Frank real estate consultancy.
The real estate company predicts that Riyadh’s population will reach 17 million by 2030, up from around 7.5 million today. The city has unveiled real estate projects worth $104 billion since the launch of the Kingdom’s National Transformation Plan in 2016.
“Vision 2030 has lit embers of excitement across the Kingdom, and with NEOM positioned as a crown jewel in transformation plans, people are eager to be part of history,” said Faisal Durrani, Partner and Head of Middle East Research, Knight Frank. Arab News.
Saudi Arabia will easily become the largest construction site in history, with planned construction projects in the Kingdom being over 555,000 residential units, over 275,000 hotel keys, over 4.3 million square meters of retail space and more than 6.1 million square meters of office space, Durrani said.
The consultancy firm is currently monitoring 15 giga-projects in the Kingdom, many of which are new autonomous supercities, said Harmen de Jong, partner and head of real estate, Strategy & Consulting in the Kingdom.
NEOM is expected to house 9 million residents in 300,000 new homes when completed, making it the largest giga project announced to date, Jong added.
Among 1,000 Saudi households surveyed, Diriyah Gate came third in popularity as a place to own, behind NEOM and The Red Sea Project.
NEOM is radically redefining urban life in resource-poor regions, Durrani said. At the same time, sub-cities like the Octagon, Trojena and the Line will set new benchmarks for luxury living in the region.
Around 30% of Saudi homeowners are willing to spend over $800,000 on a second home at NEOM. “Developers have their work cut out to satisfy this pent-up demand,” Durrani added.
De Jong said the construction progress of part of the projects stands at 29 percent, with only $7.5 billion worth of sub-projects ordered.
The rebirth of Riyadh
Another head-turning giga-project is the $20 billion Diriyah Gate that will give Riyadh 20,000 homes when completed in 2027, creating a city-sized historic district.
Knight Frank estimated that around $2.3 billion was spent on the construction of Diriyah Gate.
“Not to be outdone, the repositioning of Riyadh as the commercial nerve center of the Kingdom is well underway. And businesses around the world are already clamoring to be at the center of the Middle East’s second and much-needed global hub,” Durrani said.
Durrani added that the planned development of 2.8 million square meters of world-class office space could not come at a better time with occupancy levels for Class A offices hovering around 97% across the region. town.
A $147 billion international airport is also set to open soon, according to Knight Frank. Nearly 74% of the $200 billion investment in national infrastructure is dedicated to the new airport.
“The city also attracts a large number of internal migrants, and with support readily available to move up the housing ladder, housing prices are rising rapidly and are currently about 26% higher than at the same time l last year,” he said.
The Kingdom is also improving and providing world-class urban environments for its residents with the $500 million Riyadh Sports Boulevard and the $23 billion Green Riyadh, planting 7.5 million trees in the Saudi capital to transform it into a green and dynamic metropolis.
It also extends to 19,000 hospital beds planned for $13.8 billion, of which $8.6 billion will be spent in Riyadh province alone.
According to de Jong, more than 80 new educational institutions are being built at a cost of $82 billion.
“Furthermore, health care, education and welfare are at the heart of the transformation plans, which will contribute to an extraordinary evolution of the physical realm of the Kingdom, making it unrecognizable compared to what we see today. by the end of the decade,” Durrani said. said.