Saudi Arabia Real Estate Report

Published 22 September 2015

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Quarterly report providing expert analysis, independent forecasts and competitive intelligence on the real estate industry.

Report includes: BMI Industry View, Industry SWOT Analysis, Industry Forecasts, BMI's Real Estate Risk Reward Index, Economic Forecasts, Company Profiles and Global, Regional and Country Industry Overviews.

Why you should buy this report

  • Benefit from the latest market opportunities
  • Understand the threats to your operations and investments and protect your company against future risks
  • Gain insight on emerging trends that could support, strengthen or disrupt your activities in the market
  • Get a full view of the competitive landscape to assess your market position

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Saudi Arabia Real Estate Report
Product Price

BMI View : Saudi Arabia ' s non-oil economy and robust underlying growth will support investment into the commercial real estate market over the longer term. Growing numbers of foreign players are also expected to enter the market during this period, on the back of governmental incentives and reduced restrictions which will see strong demand for office and retail space. Although, rental stagnation is expected over the remainder of 2015, with potential marginal rises by 2016.

Oil is the key driver of the Saudi economy contributing just under half of the country's GDP, over 90% of exports and around three quarters of the Government's capital reserves. In an effort to reform economic reliance, the Government is seeking to diversify the economy, particular towards manufacturing and services. This has seen Saudi Arabia making great strides to open up their economy to foreign investors. Following accession to the World Trade Organization (WTO), new laws and initiatives on competition, capital markets, corporate taxation, insurance and foreign ownership of lands began to create a more level playing field. This can be witnessed by the introduction of favorable business policy, such as the allowing of 100% ownership in wholesale and retail outlets, which have alleviated pressure on foreign profitability in the market. We believe that the government's determination to keep fiscal policy on an expansionary footing along with pent up levels of public investments, will provide suitable fundamentals to support the expansion of the non-oil economy. We therefore forecast real GDP growth of 3.7% this year (using 1999 as a base year) and 3.2% in 2016, compared to 4.0% in 2013.

Riyadh is the capital and largest city of Saudi Arabia, with a regional population of an estimated 7mn. It is a focal point for both travel and trade. King Fahad Road has been a primary objective for businesses in the city, with a variety of commercial properties residing here. King Abdullah Street...

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BMI Industry View
Operational Risk
Industry Forecast
Office - Saudi Arabia - 2015
Table: Office Rental Rates
Table: Office Yields
Retail - Saudi Arabia - 2015
Table: Retail Rental Rates
Table: Retail Yields
Industrial - Saudi Arabia - 2015
Table: Industrial Rental Rates
Table: Industrial Yields
Residential/Non-Residential Building - Outlook And Overview
Table: Residential and Non-Residential Building Industry Data (Saudi Arabia 2013-2018)
Table: Residential and Non-Residential Building Industry Data (Saudi Arabia 2019-2024)
Table: Residential & Non-Residential Building - Major Projects Table
Macroeconomic Forecasts
Economic Analysis
Industry Risk Reward Ratings
Saudi Arabia - Risk/Reward Index
Table: MEA Real Estate Risk Reward Index
Market Overview
Competitive Landscape
Property Developers
Property Managers
Demographic Forecast
Demographic Outlook
Table: Population Headline Indicators (Saudi Arabia 1990-2025)
Table: Key Population Ratios (Saudi Arabia 1990-2025)
Table: Urban/Rural Population & Life Expectancy (Saudi Arabia 1990-2025)
Table: Population By Age Group (Saudi Arabia 1990-2025)
Table: Population By Age Group % (Saudi Arabia 1990-2025)
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: Real Estate Risk/Reward Index Indicators
Table: Weighting Of Indicators

The Saudi Arabia Real Estate Report features BMI Research's market assessment and independent forecasts of major construction projects in the residential and commercial markets, plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.

BMI's Saudi Arabia Real Estate Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in Saudi Arabia.

Key Benefits

  • Benchmark BMI's independent real estate industry forecasts for Saudi Arabia to test other views - a key input for successful budgeting and strategic business planning in the Saudi real estate market.
  • Target business opportunities and risks in Saudi Arabia through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our company profiles (inc. SWOTs, KPIs and latest activity).


BMI Industry View

Summary of BMI’s key industry forecasts, views and trend analysis covering real estate and construction, regulatory changes, major investments and projects and significant national and multinational company developments.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the real estate sector and within the broader political, financial, economic and business environment.

Industry Forecasts Outlook

Historic data series (2010-2013) and forecasts to end-2019 for the domestic real estate industry and for the local and global finance industry.

Indicators Include:

  • Real Estate: Office, retail and industrial real estate yields for all major cities (%); short term forecasts on minimum and maximum real estate rental prices by sub-sector (USD per square metre and local currency per square metre).
  • Construction: Industry value (USDbn); contribution to GDP (%); employment (‘000); real growth (%).
  • economy: Economic growth (%); nominal GDP (USDbn); unemployment (%); interest rates (%); exchange rate (against USD).

BMI’s Real Estate Risk Reward Index

BMI’s Risk Reward Indices provide investors (real estate vendors, construction companies and financial investors) looking for opportunities in the region with a clear country comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.

Market Overview

Overview of the real estate sector, including analysis of existing/planned real estate developments and emerging industry trends in the office, industrial and commercial sectors

Market Analysis

Features detailed city-level data and analysis on rental prices, yields, contract terms and real estate availability with separate chapters covering the office, retail and industrial sub-sectors.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.