Saudi Arabia’s real estate to grow by 2030 with $1trln investment; S&P

Saudi Arabia’s real estate to grow by 2030 with $1trln investment; S&P

The Kingdom of Saudi Arabia (KSA) will see sustained property market growth, fuelled by Vision 2030 and the Iskan program, with $1 trillion invested in real estate and infrastructure projects, said top rating agency S&P Global Ratings.

By the end of 2030, there will be more than 1.3 million new homes in at least eight new cities, most of which will be located around the Red Sea coast. Additionally, many projects are planned for existing major cities. By 2030, Riyadh’s population is expected to increase to over 15 million from around 8 million, with the ambitious goal of being one of the ten largest cities in the world, by 2018 estimates.

Saudi Arabia’s retail property market has a lot of long-term growth potential. Real estate will gain from various new programs to provide local housing and invigorate the business and financial sectors via investments in commercial real estate, S&P said.

Winning sectors

Looking at sectors that stand to win from Saudi Arabia’s Vision 2030 S&P said energy, real estate, transport, tourism, health care, and digital infrastructure will see meteoric growth.

“It will fall to the debt capital markets to support a large portion of these new opportunities, as the government and the banking sector alone