Riyadh – Mubasher: The overall outlook of the economic transformation in Saudi Arabia backed by 2030 Vision may seem optimistic with Saudis having the ambition to make this transformation real, Colliers International said in a recent paper on Saudi Arabia’s real estate market.

This level of transformation has been experienced before by other countries such as in Eastern Europe, the global commercial real estate leader indicated.

Imad Damrah, managing director at Colliers International KSA, commented: “This transformation is shifting the Kingdom’s industrial mix away from oil dependency, while the cultural shifts are paving the way for entertainment and leisure activities to serve an evolving population.”

Moreover, Damrah explained that such changes have impacted a number of real estate sectors across the entire value chain, from project conceptualisation and construction, through to operation and branding.

He also highlighted the importance of understanding the changes in the markets as well as adapting to the demand for new real estate types.

“With the completion and successful promotion of upcoming mega and giga projects such as the Red Sea Project and Qiddiya, which is expected to establish the Kingdom as a tourist hub for both domestic and international travellers, while positively impacting not just the entertainment industry, but other supporting components such as retail and hospitality sectors,” Imad added.

The population of Saudi Arabia is projected to grow by 5 million in the coming ten years to reach 40 million people, of which nearly 70% will be under the age of 44, the paper highlighted.

The demographic change could affect the lifestyles, preferences, and spending habits in the kingdom, Colliers said.