Saudi Arabia Real Estate Market Outlook to 2013
The report titled “Saudi Arabia Real Estate Market Outlook to 2013” discusses in details various aspects of the Saudi Arabia’s real estate market with the focus on the competition and increasing domestic population. The report covers the comprehensive analysis on the market size of the real estate sector in Saudi Arabia on the basis of supply and contribution of the real estate sector to the economy of the country, market segmentation, competitive landscape and company profiles of major developers operating in Saudi Arabia. The report also entails the SWOT analysis of the real estate sector in Saudi Arabia. The future projections and outlook provide an insight on the future growth drivers and challenges in the real estate sector of Saudi Arabia.
The real estate market in Saudi Arabia has shown a remarkable growth over the years. The reason for such growth is attributed to the country’s domestic population which generated around ~% of the total real estate demand. The real estate activity in Saudi Arabia is majorly prevalent in the cities of Muscat, Riyadh, Jeddah and Makkah, Al Khobar and Dammam.
The residential segment of the market has showcased a robust growth on account of the growing population, demanding for more residential properties for accommodation. An increasing number of marriages in the country have also catalyzed the demand growth as most of the newly wedded couples seek for residential properties either on rent or lease. Additionally, the preference of the young domestic population with better disposable income to purchase a residential property has impelled the demand for residential units in the country.
The office market in Saudi Arabia however, continues to suffer from the effect of the global economic slowdown as foreign companies still restrict themselves from expanding their operations in the country. However, in the recent past a preference for office spaces has been witnessed from the young domestic population. In Q1 of 2011, it has been observed that the office market in both the major cities of the Saudi Arabia, Riyadh and Jeddah have been under immense pressure due to the lack of supply to meet the potential demand. In Q1 of 2011, a total of ~ square meters and ~ square meters were added to the existing office stock of Riyadh and Jeddah and an addition of ~ sq. m in total is expected to be supplied in the year to balance the gap between the demand and the supply. On one hand, where the market in Jeddah suffered due to the under-supply of office stock, on the other hand the market in Riyadh suffered due to over-supply in Q1 of 2011.
The hotel segment contributed around ~% of the total real estate market in Saudi Arabia. This segment of the market has been growing consistently after the economic debacle since the H2 of 2008. This segment of the real estate market is primarily driven by the leisure and business tourists and travelers to Saudi Arabia.
The retail segment in Saudi Arabia which is also influenced by the entry of tourists and travelers who come to the region for shopping and other recreational activities, contributed approximately ~% of the total real estate market. This market has grown marginally but consistently over the years.
The potential of the real estate market in Saudi Arabia has allured numerous developers and new entrants over the years. The region is estimated to be the domain for ~ registered and unregistered real estate offices of which approximately ~% based in the Central region, ~% in the Western and ~% in the Eastern region. It has been observed that the market is fragmented amongst several players of which around ~% are small and unregistered developers and the remaining ~% is scattered amongst ~ potential developers.
In 2010, the major developers in the country contributed around ~% of the total market revenue. The conglomerates accounted for approximately ~% of the market revenue and around ~% were contributed by the medium sized developers. The commercial sector is however, shared by the major players and the diversified conglomerates with their profound financial health.
Considering the prevalent real estate market conditions, the real estate market supply is expected to increase to ~ thousand square meter of GLA by 2013. The market is expected to supply an addition of ~ GLA thousand square meter of space by 2013, to reduce the imbalance between the demand and the supply and cater to the requirements of an increasing demand of the rising young domestic population.
Key Topics Covered in the Report:
The real estate market in Saudi Arabia has shown a remarkable growth over the years. The reason for such growth is attributed to the country’s domestic population which generated around ~% of the total real estate demand. The real estate activity in Saudi Arabia is majorly prevalent in the cities of Muscat, Riyadh, Jeddah and Makkah, Al Khobar and Dammam.
The residential segment of the market has showcased a robust growth on account of the growing population, demanding for more residential properties for accommodation. An increasing number of marriages in the country have also catalyzed the demand growth as most of the newly wedded couples seek for residential properties either on rent or lease. Additionally, the preference of the young domestic population with better disposable income to purchase a residential property has impelled the demand for residential units in the country.
The office market in Saudi Arabia however, continues to suffer from the effect of the global economic slowdown as foreign companies still restrict themselves from expanding their operations in the country. However, in the recent past a preference for office spaces has been witnessed from the young domestic population. In Q1 of 2011, it has been observed that the office market in both the major cities of the Saudi Arabia, Riyadh and Jeddah have been under immense pressure due to the lack of supply to meet the potential demand. In Q1 of 2011, a total of ~ square meters and ~ square meters were added to the existing office stock of Riyadh and Jeddah and an addition of ~ sq. m in total is expected to be supplied in the year to balance the gap between the demand and the supply. On one hand, where the market in Jeddah suffered due to the under-supply of office stock, on the other hand the market in Riyadh suffered due to over-supply in Q1 of 2011.
The hotel segment contributed around ~% of the total real estate market in Saudi Arabia. This segment of the market has been growing consistently after the economic debacle since the H2 of 2008. This segment of the real estate market is primarily driven by the leisure and business tourists and travelers to Saudi Arabia.
The retail segment in Saudi Arabia which is also influenced by the entry of tourists and travelers who come to the region for shopping and other recreational activities, contributed approximately ~% of the total real estate market. This market has grown marginally but consistently over the years.
The potential of the real estate market in Saudi Arabia has allured numerous developers and new entrants over the years. The region is estimated to be the domain for ~ registered and unregistered real estate offices of which approximately ~% based in the Central region, ~% in the Western and ~% in the Eastern region. It has been observed that the market is fragmented amongst several players of which around ~% are small and unregistered developers and the remaining ~% is scattered amongst ~ potential developers.
In 2010, the major developers in the country contributed around ~% of the total market revenue. The conglomerates accounted for approximately ~% of the market revenue and around ~% were contributed by the medium sized developers. The commercial sector is however, shared by the major players and the diversified conglomerates with their profound financial health.
Considering the prevalent real estate market conditions, the real estate market supply is expected to increase to ~ thousand square meter of GLA by 2013. The market is expected to supply an addition of ~ GLA thousand square meter of space by 2013, to reduce the imbalance between the demand and the supply and cater to the requirements of an increasing demand of the rising young domestic population.
Key Topics Covered in the Report:
- The market size of the real estate sector in Saudi Arabia on the basis of total supply and the contribution of the sector to the GDP of the economy, 2005-2010.
- Market segmentation of the Saudi Arabia real estate market by residential, office, retail and hotel on the basis of total supply, 2005-2010
- Recent trends and developments of the Saudi Arabia real estate market
- SWOT analysis of the Saudi Arabia real estate market
- Market share of the major real estate developers operating in Saudi Arabia, 2010
- Company profiles of leading developers in the real estate market in Saudi Arabia
- Future outlook and projections of the supply of residential, office, retail and hotel spaces, 2011-2013
- Cause and effect relationship analysis between industry factors and expected industry prospects in the Saudi Arabia real estate market
- Historical and future forecast of several macro-economic and industry factors including Population, GDP, number of tourist arrivals, inflation and housing finance
1. SAUDI ARABIA REAL ESTATE MARKET INTRODUCTION
2. SAUDI ARABIA REAL ESTATE MARKET SIZE, 2007-2010
2.1. By Revenue, 2007-2010
2.2. By Supply, 2005-2010
3. SAUDI ARABIA REAL ESTATE MARKET SEGMENTATION ON THE BASIS OF SUPPLY, 2005-2010
3.1. By Residential, Office, Retail and Hotel, 2005-2010
4. SAUDI ARABIA REAL ESTATE MARKET TRENDS AND DEVELOPMENTS
5. SAUDI ARABIA REAL ESTATE MARKET SWOT ANALYSIS
Strengths
Weaknesses
Opportunity
Threats
6. SAUDI ARABIA REAL ESTATE MARKET COMPETITIVE LANDSCAPE
6.1. Saudi Arabia Real Estate Market Developers' Market Share, 2010
7. SAUDI ARABIA REAL ESTATE MARKET FUTURE OUTLOOK
7.1. Cause and Effect Relationship between Dependent and Independent Factors Prevailing in Saudi Arabia Real Estate Market
7.2. Saudi Arabia Real Estate Market Future Projections, 2011-2013
5.1. Major Saudi Arabia Real Estate Developers Profiles
5.1.1. Dar Al Arkan Real Estate Development Company
Company Overview
Financial Performance
5.1.2. Saudi Real Estate Company
Company Overview
Financial Performance
5.1.3. Saudi Hotels and Resort Areas Company
Company Overview
Financial Performance
5.1.4. Makkah Construction and Development Company
Company Overview
Financial Performance
5.1.5. Taiba Holding
Company Overview
Financial Performance
5.1.6. Arriyadh Development Company
Company Overview
Financial Performance
8. SAUDI ARABIA MACRO ECONOMIC AND INDUSTRY FACTORS: HISTORICAL AND PROJECTIONS
8.1. Population, 2005-2013
8.2. Gross Domestic Product, 2005-2013
8.3. Number of Tourists, 2005-2010
8.4. Inflation, 2005-2013
8.5. Real Estate Finance, 2007-2010
9. APPENDIX
9.1. Market Definition
9.2. Abbreviations
9.3. Research Methodology
Data Collection Methods
Approach
9.4. Disclaimer
2. SAUDI ARABIA REAL ESTATE MARKET SIZE, 2007-2010
2.1. By Revenue, 2007-2010
2.2. By Supply, 2005-2010
3. SAUDI ARABIA REAL ESTATE MARKET SEGMENTATION ON THE BASIS OF SUPPLY, 2005-2010
3.1. By Residential, Office, Retail and Hotel, 2005-2010
4. SAUDI ARABIA REAL ESTATE MARKET TRENDS AND DEVELOPMENTS
5. SAUDI ARABIA REAL ESTATE MARKET SWOT ANALYSIS
Strengths
Weaknesses
Opportunity
Threats
6. SAUDI ARABIA REAL ESTATE MARKET COMPETITIVE LANDSCAPE
6.1. Saudi Arabia Real Estate Market Developers' Market Share, 2010
7. SAUDI ARABIA REAL ESTATE MARKET FUTURE OUTLOOK
7.1. Cause and Effect Relationship between Dependent and Independent Factors Prevailing in Saudi Arabia Real Estate Market
7.2. Saudi Arabia Real Estate Market Future Projections, 2011-2013
5.1. Major Saudi Arabia Real Estate Developers Profiles
5.1.1. Dar Al Arkan Real Estate Development Company
Company Overview
Financial Performance
5.1.2. Saudi Real Estate Company
Company Overview
Financial Performance
5.1.3. Saudi Hotels and Resort Areas Company
Company Overview
Financial Performance
5.1.4. Makkah Construction and Development Company
Company Overview
Financial Performance
5.1.5. Taiba Holding
Company Overview
Financial Performance
5.1.6. Arriyadh Development Company
Company Overview
Financial Performance
8. SAUDI ARABIA MACRO ECONOMIC AND INDUSTRY FACTORS: HISTORICAL AND PROJECTIONS
8.1. Population, 2005-2013
8.2. Gross Domestic Product, 2005-2013
8.3. Number of Tourists, 2005-2010
8.4. Inflation, 2005-2013
8.5. Real Estate Finance, 2007-2010
9. APPENDIX
9.1. Market Definition
9.2. Abbreviations
9.3. Research Methodology
Data Collection Methods
Approach
9.4. Disclaimer
LIST OF FIGURES
Figure 1: Saudi Arabia Real Estate Market Size by Revenue in USD Million, 2007-2010
Figure 2 : Saudi Arabia Real Estate Market Size by Supply in GLA Thousand Square Meter, 2005-2010
Figure 3: Saudi Arabia Real Estate Market Segmentation by Residential, Office, Retail and Hotel on the Basis of Supply in Percentage, 2005-2010
Figure 4: Saudi Arabia Real Estate Market Projected Supply in GLA Thousand Square Meter, 2011-2013
Figure 5: Dar Al Arkan Real Estate Development Company Total Revenue in USD Million. 2007-2010
Figure 6: Saudi Real Estate Company Total Revenue in USD Million. 2007-2010
Figure 7: Saudi Hotels and Resort Areas Company Total Revenue in USD Million. 2007-2010
Figure 8: Makkah Construction and Development Company Total Revenue in USD Million. 2007-2010
Figure 9: Taiba Holding Total Revenue in USD Million, 2007-2010
Figure 10: Arriyadh Development Company Total Revenue in USD Million. 2007-2010
Figure 11: Population in Million, 2005-2013
Figure 12: Gross Domestic Product in USD Million, 2005-2013
Figure 13: Total Number of Tourist Arrivals in Million, 2005-2010
Figure 14: Inflation in Percentage, 2005-2013
Figure 15: Real Estate Finance in USD Million, 2007-2010
Figure 1: Saudi Arabia Real Estate Market Size by Revenue in USD Million, 2007-2010
Figure 2 : Saudi Arabia Real Estate Market Size by Supply in GLA Thousand Square Meter, 2005-2010
Figure 3: Saudi Arabia Real Estate Market Segmentation by Residential, Office, Retail and Hotel on the Basis of Supply in Percentage, 2005-2010
Figure 4: Saudi Arabia Real Estate Market Projected Supply in GLA Thousand Square Meter, 2011-2013
Figure 5: Dar Al Arkan Real Estate Development Company Total Revenue in USD Million. 2007-2010
Figure 6: Saudi Real Estate Company Total Revenue in USD Million. 2007-2010
Figure 7: Saudi Hotels and Resort Areas Company Total Revenue in USD Million. 2007-2010
Figure 8: Makkah Construction and Development Company Total Revenue in USD Million. 2007-2010
Figure 9: Taiba Holding Total Revenue in USD Million, 2007-2010
Figure 10: Arriyadh Development Company Total Revenue in USD Million. 2007-2010
Figure 11: Population in Million, 2005-2013
Figure 12: Gross Domestic Product in USD Million, 2005-2013
Figure 13: Total Number of Tourist Arrivals in Million, 2005-2010
Figure 14: Inflation in Percentage, 2005-2013
Figure 15: Real Estate Finance in USD Million, 2007-2010
LIST OF TABLES
Table 1: Saudi Arabia Real Estate Market Segmentation by Residential, Office, Retail and Hotel on the Basis of Supply in GLA Thousand Square Meter, 2005-2010
Table 2: Saudi Arabia Residential in Units in Thousand and Hotel Rooms in Thousand, 2005-2010
Table 3: Saudi Arabia Real Estate Market Developers’ Market Share in Percentage, 2010
Table 4: Saudi Arabia Real Estate Market Players’ Total Revenue in USD Million, 2010
Table 5: Cause and Effect Relationship Analysis between Industry Factors and Expected Industry Prospects of Saudi Arabia Real Estate Market
Table 6: Saudi Arabia Real Estate Market Projected Supply by Residential, Office, Retail and Hotel in GLA Thousand Square Meter, 2011-2013
Table 7: Saudi Arabia Residential and Hotel Real Estate Market Projected Supply in Units in Thousand and Rooms in Thousands, 2011-2013
Table 8: Real Estate Projects by Dar Al Arkan Real Estate Development Company, 2011
Table 9: Real Estate Projects by Saudi Real Estate Company, 2011
Table 10: Real Estate Projects by Makkah Construction and Development Company, 2011
Table 11: Real Estate Projects by Arriyadh Development Company, 2011
Table 1: Saudi Arabia Real Estate Market Segmentation by Residential, Office, Retail and Hotel on the Basis of Supply in GLA Thousand Square Meter, 2005-2010
Table 2: Saudi Arabia Residential in Units in Thousand and Hotel Rooms in Thousand, 2005-2010
Table 3: Saudi Arabia Real Estate Market Developers’ Market Share in Percentage, 2010
Table 4: Saudi Arabia Real Estate Market Players’ Total Revenue in USD Million, 2010
Table 5: Cause and Effect Relationship Analysis between Industry Factors and Expected Industry Prospects of Saudi Arabia Real Estate Market
Table 6: Saudi Arabia Real Estate Market Projected Supply by Residential, Office, Retail and Hotel in GLA Thousand Square Meter, 2011-2013
Table 7: Saudi Arabia Residential and Hotel Real Estate Market Projected Supply in Units in Thousand and Rooms in Thousands, 2011-2013
Table 8: Real Estate Projects by Dar Al Arkan Real Estate Development Company, 2011
Table 9: Real Estate Projects by Saudi Real Estate Company, 2011
Table 10: Real Estate Projects by Makkah Construction and Development Company, 2011
Table 11: Real Estate Projects by Arriyadh Development Company, 2011
