Since the National Transformation Plan of Saudi Arabia has set in motion in 2036, the combined capital value of the real estate and infrastructure of the region has crossed $1.1tn. according to a well-known real estate consultancy.
Partner – head of Middle East Research, Faisal Durrani said regarding the progress that Saudi Arabia is unfolding a great vision for the future. The transformation taking place in the fastest-growing economy in the world is exceptional, and the entire urban atmosphere is flowing with the incredible shift in the country. With more than 555,000 residential elements, over 275,000 hotel keys, retail space with more than 4.3 million square meters, along with more than 6.1 million square meters of new commercial space, which is expected by the year 2030, it is fair to say that Saudi Arabia is on the verge to become the largest construction site in the world with the planned construction in the domain.
The NEOM project will eventually accommodate 9 million people in an estimated 300,000 new homes.
Additionally, transformative plans place a priority on healthcare, education, and well-being. By the end of the decade, the physical environment of the kingdom will have undergone an astounding transformation.
Partner – head of consulting and real estate Saudi Arabia, Harmen De Jong said that 15 giga projects are being tracked in various phases of construction in the domain. The NEOM project, which has been announced as the largest mega project to date, will eventually accommodate 9 million people in an estimated 300,000 new homes. However, just $7.5 billion in subprojects have been started so far, and only 29% of this tranche’s projects are in the building phase.
In addition to this, Durrani added that the kingdom has seen a pace of excitement with Vision 2030 and people are longing to be a part of history with the NEOM announced as a great achievement in the plans of transformation. Supercities like NEOM will dramatically alter how urban life is lived while also genuinely embracing sustainability in a place that is resource poor. With close to 30% of Saudi homeowners willing to spend upwards of $800,000 on a second home in the kingdom, developers will have their work cut out for them in order to meet this pent-up demand. New standards for opulent living in the area will be set by suburbs like The Octagon, Trojena, and The Line.
The population of Riyadh is expected to more than double from its current 7.5 million residents to close to 17 million by 2030.
Apart from NEOM, another important project for the domain is the $20bn Diriyah Gate. Diriyah is expected to be complete by 2027, and the historic district with an area of almost a city will provide a home to the residential stock of Riyadh. The real estate consultancy has estimated that 46 percent of the construction has been done with a spending of $5bn.
The population of Riyadh is expected to more than double from its current 7.5 million residents to close to 17 million by 2030. The city itself has seen real estate developments worth $104 billion launched over the last six years in order to reach this ambitious growth plan. There are plans for a brand-new, $147 billion international airport; further information is due soon. The new international airport represents over 74% of the $200 billion in national infrastructure spending.