Saudi Arabia to become the world's largest construction site: Report

$1.1 trillion will be invested as part of the Vision 2030 project



By Web Desk

Published: Wed 7 Sep 2022, 8:57 AM

According to global real estate consultancy Knight Frank, planned construction in Saudi Arabia by 2030 is set to make the Kingdom the current biggest construction site in the world.

With a total investment of SR4.13 trillion ($1.1 trillion), and an expected installation of over 555,000 residential units, 275,000 hotel keys, 4.3 million sqm of retail space and over 6.1 million sqm of new office space, it may even become the largest construction site in history.

Knight Frank projected that Riyadh's population will touch 17 million by 2030 as compared to 7.5 million today. Following the launch of Saudi Arabia's national transformation plan, Vision 2030, in 2016, Riyadh alone has seen an unveiling of real estate projects worth $104 billion.

Plans for a new international airport worth $147 billion have also been reported by the real estate firm, details of which are expected soon. Roughly 74 per cent of the $200 billion nationwide infrastructure expenditure goes towards this airport.

"We are currently tracking 15 giga projects in various phases of construction around the Kingdom, many of which are new stand-alone super-cities in their own right", commented Harmen de Jong, head of Real Estate Strategy & Consulting, Saudi Arabia.

"However, just $7.5 billion of sub projects have been commissioned thus far, with construction progress of this tranche of projects standing at 29 per cent."

He added that Neom is estimated to house 9 million residents across 300,000 new homes once completed, making it the largest giga-project announced to date.

Close to 30 per cent of home-owners in the Kingdom are prepared to spend over $800,000 on a second home in Neom, the report adds, meaning that developers will have their work cut out for them to satisfy this explosive demand.

ALSO READ:


More news from MENA