KSA real estate market seen as a Gulf powerhouse

The Saudi Arabia real estate market is set to grow significantly over the next four years,  a new report from Jones Lang LaSalle, the world’s leading real estate investment and advisory firm, has found.

The report, “The Gulf’s Powerhouse – Saudi Arabia’s Real Estate Market,” which was published last week, highlighted the breadth of the investment opportunity across the residential, office and hotel sectors in Saudi Arabia.

According to the report, the real estate markets are being driven by a combination of a large and growing economy and strong demographic fundamentals. The Saudi economy is by far the largest in the region and is well positioned to outperform others in the region in the face of the current global economic downturn.

One of the main drivers of both the economy and the real estate market is the size and rapid growth in population. Saudi Arabia has been the world’s fastest growing large country in terms of population over the past 10 years. As a result, the kingdom has a very young demographic profile, with around 45% of the population currently aged below 20 years. This young age profile and the rapid rate of urbanisation have been the major demographic factors driving the real estate market.

Saudi Arabia has the largest real estate market in the GCC, with more commercial floor space than all of the other GCC countries combined.

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