07
Left: Kingdom Centre, Riyadh
Below: Emaar Residences at Abraj al-Bait
Residential primed
According to SAIF, more than 2.5 million housing units need to
be delivered between now and 2020 in order to meet demand.
In value terms, the housing sector accounts for 75 percent of
all real estate activity in the country, and SAIF adds that around
US$20 billion per year is required to accommodate annual
housing demand through 2020. Riyadh alone faces an estimated
shortage of 225,000 residential units, and the overall figure for
the country is just over the one million mark.
The situation in the major cities is particularly pressing
according to the Colliers report, which reported that the Riyadh
Development Authority forecasts an annual demand for 30,000
new residential units for the next 15 years.
Villas and other single unit accommodation dominate Riyadh
residential stock, accounting for a 39 percent market share,
followed by the apartments sub-market with a share of 36
percent. Colliers added that residential yields in Saudi Arabia are
among the highest in the region, reaching 9.5 percent in parts
of Riyadh. Residential units account for almost 90 percent of
permits issued over the past seven years, with Riyadh alone
accounting for 35 percent.
residential and commercial areas is expected to begin in June
2009 and completed in December 2013, while the completion
of the entire project will stretch through to 2036. The integrated
economic and industrial city will cover 117 square kilometres,
and will contain a business district, residential areas, a marina,
and educational and hospitality facilities.
Emaar is developing the King Abdullah Economic City, valued
at a staggering US$92.9 billion. Work has been underway since
February 2006, but is not due for completion until 2030. It will
cover an area of 168 million square metres along the Red Sea
coastline, and will include a 14 million-square-metre seaport, an
industrial district, a financial island, a residential zone with 150,000
apartments, and an educational zone with a multi-university
campus for 18,000 students.
Another economic city underway is the Prince Abdulaziz Bin
Mousaed Economic City. The US$53 billion project – developed
by Al-Mal Kuwaiti Company and Rakisa Holding – will contain an
airport, dry port, a business centre, an entertainment zone for
700,000 tourists per annum, an educational zone for 40,000
students, and a residential zone of 3,000 commercial units and
30,000 residential units. Construction started in December
2006, and is expected to be completed by 2025.
PREVIEW Cityscape Saudi Arabia
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