Saudi Press

Saudi Arabia and the world
Saturday, Jun 21, 2025

Why Saudi developers might need to change focus to meet real estate demand

Why Saudi developers might need to change focus to meet real estate demand

Experts say affordability is key as Saudis struggle to finance the large villas most common in the kingdom
Affordability is likely to become more important in the real estate market to Saudis as most struggle to buy the large villas most common in the kingdom.

Experts say despite shifts in demographics, a reduction in household sizes and on-going cultural reform, there has been very little change in the nature of housing supply across the kingdom.

The majority of new stock is centred towards large villas on the periphery of the ever-expanding urban boundaries of Saudi Arabia’s major cities.

But this type of product is one which the new demographic cohort will struggle to afford or have any desire to occupy, according to real estate consultants Knight Frank which said demand for properties below SR1 million is highest.

It added that affordability, which is often used as a precursor for estimating effective demand, is often looked at as a singular quantitative matter in Saudi Arabia.

To bridge the gap in this understanding, Knight Frank has undertaken its inaugural Saudi Arabia National Housing Survey which aims to strengthen understanding of effective demand on a national and city level across the kingdom.

Taimur Khan, associate partner and head of research, Knight Frank Middle East said: “Saudi Arabia has seen rapid changes in its, where its population has increased by over 520 percent in the 50 years to 2020 and where over the same period its rate of urbanisation has increased from 49 percent to 84 percent.

In addition to this, the demographic profile has also changed, where today an estimated 58 percent of its citizen population is below the age of 30.

"Despite these shifts, we have seen very little change in the nature of housing supply. This backdrop has meant that affordability has become one of the most prevalent challenges facing the Saudi Arabian housing sector and our survey provides potential solutions to tackle these challenges.”

The survey showed that 56 percent of those renting said they were looking to buy a property in the next five years.

It also highlighted that demand for properties below SR1 million is highest.

Knight Frank said it estimates that at least a third of the market still retain a preference for apartment living.

The survey said over 62 percent of potential buyers surveyed would be likely or very likely to purchase an off-plan property.

Using the data from the survey, Knight Frank said it is able to identify critical factors which must be met to capture the majority of demand.

Stefan Burch, partner and general manager, Knight Frank Saudi Arabia said: “We are fully aware of the pent up demand for suitable residential stock within the kingdom. To date the challenge has been understanding exactly where the parameters of demand lie.

Having commission this extensive survey we have been able to observe the type and price of residential stock that will respond to the majority of existing demand which will, in turn, assist stakeholders when considering participation in the residential sector."
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Black Box Recovered from Air India Crash Site
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Syria to Reconnect to Global Economy After 14 Years of Isolation
Israel Confirms Arming Gaza Clan to Counter Hamas Influence
Global News Roundup: From Ukraine's strategic military strikes and Russia's demands and Tensions Escalate in Ukraine, to serious legal issues faced by Britons in Bali and Trump's media criticism, the latest developments highlight a turbulent landscape
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
×