Not surprisingly, Saudi Arabia remains one of the largest construction markets in the Middle East. This article explores the key trends driving the revolution and highlights future-oriented developments that are set to change the face of Saudi Arabia as we know it.
TREND 1: RISE OF WORK-LIVE-PLAY LIFESTYLE
The emergence of millennials as a dominant consumer group has significantly influenced Saudi Arabia. Millennials, aged between 18 and 35, account for 70% of the country's population. This generation is entering the workforce, advancing their careers, and establishing households, and their preferences and lifestyles are shaping current and future trends in the Kingdom.Â
Millennials prioritise lifestyle experiences. As a result, Saudi Arabia is witnessing a significant shift towards a work-live-play lifestyle and its younger demographics are increasingly seeking mixed-use developments that offer a seamless blend of commercial, residential, and retail spaces. Showcasing a similar streak, a recent YouGov survey revealed that eight out of 10 individuals in the country express a preference for living in integrated communities. This demand for dynamic living spaces is reshaping the real estate landscape in Saudi Arabia.
TREND 2: AFFORDABLE, HIGH-QUALITY HOUSING TO BECOME MAINSTREAM
With the rise of nuclear family systems and work-related migrations, there is a growing need for high-quality, smaller living spaces in urban centres that are both affordable and superior quality. For years, the Kingdom faced housing challenges characterised by low homeownership rates and a lack of high-quality, affordable stock for the growing population.
The government has set the right foundations to radically transform the housing sector by improving access to finance, introducing new and affordable housing products, and creating efficiencies within the sector. In 2020, home ownership stood at 62% in KSA, up from 49.8% in 2016, and is well on its way to reaching 70% by 2030. A key driver of Vision 2030's economic diversification agenda, the Public Investment Fund’s ROSHN is tackling affordable housing challenges in nine cities across the Kingdom by delivering 200 million square meters of top-tier housing solutions in integrated communities by 2030.
There is also a noticeable shift towards multi-family properties, particularly high-quality apartments in key cities like Riyadh and Jeddah. Millennials seek modern, well-designed living spaces that cater to their desire for convenience, connectivity, and a vibrant social environment. This shift in preferences has prompted developers and investors to focus on creating appealing and innovative residential offerings that meet the evolving needs of this influential consumer segment in Saudi Arabia.
Future-Oriented Developments:
Amidst the ongoing transformation, Saudi Arabia's real estate revolution is propelled by visionary projects that epitomise the essence of futuristic living. At the forefront is NEOM, a USD 500-billion sustainable smart city that promises to redefine urban living. Spanning 170 kilometres, NEOM will be a car-free, street-free oasis powered by clean energy, boasting zero carbon emissions. It seamlessly blends walkability, clean energy solutions, and cutting-edge technology to create an entirely novel way of life.
Complementing NEOM is Qiddiya, an expansive 366-square-kilometre development set to become a thriving global entertainment destination. This ambitious project encompasses theme parks, Formula 1 racing tracks, state-of-the-art sports stadiums, and cultural and artistic experiences. With its grand scale and visionary approach, Qiddiya represents a monumental investment that is poised to shape the future of entertainment in the Middle East and captivate audiences from around the world.
In addition to these monumental projects, the Red Sea Project is redefining the concept of sustainable and immersive travel experiences in Saudi Arabia's burgeoning tourism sector. This visionary endeavour showcases the untouched beauty of pristine islands and abundant marine life and offers luxurious living options. With a strong commitment to environmental preservation and the development of exquisite resorts, the Red Sea Project aims to showcase the unparalleled wonders of the Red Sea while providing unmatched hospitality and unforgettable adventures for discerning travellers.
These remarkable projects collectively demonstrate Saudi Arabia's unwavering commitment to innovation, sustainability, and creating exceptional living, entertainment, and tourism experiences. As they continue to unfold, they present remarkable investment opportunities and position the country as a leading global destination for forward-thinking real estate ventures and unparalleled experiences.
CONCLUSION
The future of living in Saudi Arabia is characterised by visionary projects that are reshaping the landscape of urban living. Saudi Arabia’s transformative developments, coupled with a focus on sustainability and innovation, are creating a future where residents and visitors alike can enjoy unparalleled quality of life. As the nation continues to pave the way for the future, the upcoming Future of Living Summit, taking place during Cityscape Global, will serve as a platform to explore and discuss the latest trends and opportunities in smart cities, sustainability, urban planning, and digital transformation. This summit will bring together local, regional, and global experts, offering unique insights and successful case studies that will inspire and educate attendees about the exciting possibilities that lie ahead.
