The total value of the real estate and infrastructure projects launched since the onset of Saudi Arabia’s ambitious Vision 2030 plan in 2016 has crossed $1.1 trillion, real estate consultancy Knight Frank said.
Vision 2030 is a transformation plan aimed at transforming the economic makeup of Saudi Arabia and preparing it for a post-hydrocarbon age. As part of the plan, the kingdom has embarked on a variety of ‘giga-projects,’ including the futuristic city of NEOM, the Diriyah Gate project, and The Red Sea Development Project.
“The phenomenal transformation taking place in the world’s fastest-growing economy is clearly visible across the entire urban landscape. With over 555,000 residential units, more than 275,000 hotel keys, in excess of 4.3 mn sqm of retail space and over 6.1 mn sqmt of new office space expected by 2030, the planned construction in the Kingdom will easily make Saudi Arabia the largest construction site the world has ever known,” Faisal Durrani, Partner – Head of Middle East Research at Knight Frank said.
Many among giga projects in various phases of construction around the Kingdom, are new stand-alone super-cities in their own right. NEOM remains the largest giga-project announced to date, and it has been recently publicised that it will house nine million residents on completion across an estimated 300,000 new homes. However, just $7.5 billion of sub projects have been commissioned thus far, with construction progress of this tranche of projects standing at 29 percent.”
Vision 2030 has lit the embers of excitement across the Kingdom and with NEOM being positioned as a crown jewel in the transformative plans, people are eager to be part of history. Super-cities like NEOM will redefine urban living in a spectacular way, while meaningfully embracing sustainability in a resource hungry region.
Sub-cities like The Octagon, Trojena and The Line will set new benchmarks for luxury living in the region and with close to 30 percent of home-owners in Saudi prepared to spend upwards of $800,000 on a second home in the Kingdom, developers have their work cut out to satisfy this pent-up demand.
