Saudi Arabia’s real estate, infrastructure projects hit $1.25tn

NEOM, the $500bn megacity, is progressing rapidly, with $70bn of projects now awarded, 45 per cent of which has been completed

by Gulf Business

September 7, 2023

Image courtesy: Jeremy Suyker/ Getty Images

The value of Saudi Arabia’s real estate and infrastructure projects have crossed $1.25tn with the value of commissioned projects reaching $250bn, according to a report by real estate consultancy firm Knight Frank.

“Over the last year, various subcomponents in NEOM were revealed, including Trojena, the host location for the 2030 Asian Games and Sindalah, the luxury island and hospitality destination in the Red Sea, which will be the first of NEOM’s projects to materialise,” Harmen de Jong, partner – head of Strategy & Consultancy, Saudi Arabia said.

NEOM, the $500bn megacity, is progressing rapidly, with $70bn of projects now awarded, 45 per cent of which has been completed.

Knight Frank’s Saudi Giga Projects Report revealed that western Saudi remains a central piece in the transformative vision for the kingdom, with real estate projects valued at $687bn expected to be delivered by the end of the decade.

“Arguably one of, if not the most expansive real estate development programs ever seen in the world is gathering pace in Saudi Arabia as the 2030 deadline nears to realise Vision 2030,” said Faisal Durrani, partner – head of Research, Middle East & North Africa.

“The volume of residential units planned has risen to 660,000 units, up 30 per cent in the last 12 months, which will come as welcome news to house hunters prevented by the recent spike in values, which has underpinned a nationwide decline in the volume of homes being sold.”

Saudi Arabia’s capital Riyadh

Riyadh remains a pivotal focus point for Saudi Arabia’s transformation and currently accounts for 18 per cent of all real estate and development projects underway, with a combined value of $229bn.

Knight Frank said the projects include plans for more than 241,000 homes by 2030, in addition to 3.6 million square meters of office space.

The report also highlighted that King Salman Park is one of the most advanced giga projects in Riyadh with $8.8bn of contracts awarded in the $9bn development as it moves closer to completion in 2027.

Following its completion, the development will offer more than 12,000 homes, over 600,000 square metres of office space and over half a million square metres of retail offerings.

Healthcare & Education

Knight Frank said there is a growing emphasis being placed on the well-being of Saudi Arabia’s residents through the improvement and provision of world-class urban environments.

“The emphasis on wellbeing extends to the 24,000 hospital beds planned, which is set to cost $39.5bn, $27bn of which is planned for Riyadh Province alone,” Shehzad Jamal, partner – Strategy and Consultancy at Middle East & Africa.

The country’s healthcare and education projects include Qiddiya’s recent plans to expand to Jeddah with the $266m Qiddiya Coast theme park, the $500m Riyadh Sports Boulevard and the $23bn ‘Green Riyadh’ which will transform the Saudi capital into a verdant metropolis.

Similarly, Dammam’s 650,000 square meters Amanat Al Sharqiya project will see the revitalisation of the city’s corniche.