The world’s largest real estate investment and advisory firm revealed that the real estate market in Saudi Arabia is in for a historic year of growth.
JLL, a service providing consulting and investment management worldwide, underlined that recent reforms in the Kingdom of Saudi Arabia are a major driver of performance and international investment.
“With Vision 2030 in place, and the economy adjusting to lower economic growth, 2017 is set to become a watershed year for the Kingdom’s real estate market. The Kingdom is keen to move towards diversifying the economy and as a result the government is expanding the leisure and tourism sector to attract visitors to the country,” stated Craig Plumb, Head of Research at JLL’s Middle East and North Africa division.
Increased governmental regulation in the real estate market has boosted the entrance of additional housing units in the market, offering international investors an attractive environment of economic growth and payoff in the housing market. The Kingdom is now focused on promoting affordable housing, leading to advances in real estate development under the Vision 2030 plan.
JLL’s report also highlighted the economic resilience demonstrated by Saudi Arabia in recent years. In light of challenges presented by the global oil market and domestic economic forces, the Government of Saudi Arabia announced the Citizen’s Account Program to ease pressures on families purchasing household energy and water supplies.
These challenges are not expected to last for long, however, and many sectors in the Kingdom have been insulated from their effects. The culture-oriented reforms of the Saudi Vision 2030 strategy have been a boon for the real estate sector and project land development initiatives.
“With the entertainment reforms being introduced by the government, shopping center owners remain positive on movie theaters being licensed in the Kingdom. These will reinvigorate shopping centers and attract a higher footfall. Differentiation, entertainment and new design concepts will lead to the success of future shopping centers in Jeddah,” added Jamil Ghaznawi, National Director of JLL in Saudi Arabia.
Vision 2030: Promoting Real Estate Growth
Under Saudi Vision 2030, the government will capitalize on its existing reserves of real estate to drive the development of educational institutions, retail and entertainment centers, and tourist projects that are set to attract major leaders in the business sector. The national strategy plan is widely expected to boost the quality of living for the Kingdom’s residents and citizens, who will benefit from expanded housing affordability and access to entertainment venues.
Read more here at Saudi Gazette.