With the initiation of WFH to curb the spread of Covid-19, the demand for office spaces has seen a downward shift in Saudi Arabia. However, the market has witnessed a rise in activity in co-working spaces. “To support and sustain the growth of the private sector, the government announced two stimulus packages amounting to SAR 120 billion.” Homeownership continues to be on the rise as the kingdom increases efforts to deliver numerous units each quarter. However, a slowdown in demand is possible due to lack of stimulus packages in the residential sector. As retail rental rates go under pressure and physical retail spaces experience low footfall, demand for e-commerce, and retail-driven warehousing is on the rise across the Kingdom. According to JLL, “As with other global markets, the hospitality industry in Saudi Arabia was negatively impacted by the imposed travel restrictions.”
Read more on KSA’s Real Estate Market in this JLL report.
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