Introduction:
Saudi Arabia, the largest country in the Arabian Peninsula, is home to over 37 million people. The country recorded a GDP growth rate of over 8.7% in 2022, an increase of almost 4.9% from 2021. Saudi Arabia grew at the quickest rate among the G20 nations in 2022. The nation’s leadership has adopted a national transformation plan named Vision 2030 to diversify the economy, even though the country’s economy is still primarily driven by abundant oil reserves and related hydrocarbon industries. They have also entrusted a sizable amount of assets to the Public Investment Fund (PIF), which is currently among the largest sovereign wealth funds in the world. The goal of Vision 2030 is to increase employment and non-oil revenue in the nation, especially in the retail, healthcare, education, esports, and video gaming sectors. The non-oil sector private sector growth has significantly increased since the beginning of 2017 and is expected to increase by 4.8% in 2022, indicating the impact of Vision 2030.
Vision 2030 and the Iskan programme could drive Saudi Arabia’s real estate market to boom in the next ten years, with USD 1 trillion set aside for the development of real estate and infrastructure projects. The office real estate market in Saudi Arabia is valued at USD 7.23 billion this year and is expected to grow at a compound annual growth rate (CAGR) of more than 8.12% over the projection year. Government programmes like VISION 2030 and related measures that entice investors to enter the market are what drive the market.
Along the Red Sea coast, at least eight new cities are planned, including the multibillion-dollar, futuristic city of NEOM, which might draw in foreign investors to the country. Existing major cities are also scheduled to see several projects. By 2030, Riyadh’s population is predicted to reach over 15 million, with the audacious vision of ranking among the top 10 largest cities in the world. As a result, real estate investors are swarming to the nation, potentially increasing the value of the real estate market there.
An overview of the office real estate sector in Saudi Arabia
Saudi Arabia, the nation with the largest population in the Gulf Cooperation Council, has the highest demand for new homes, with about 4 million expected by 2022.
In Saudi Arabia, there are several local and regional companies in the real estate sector, and these players own the lion’s share of the market share. To keep up with the growing demand for real estate, several businesses are expanding their construction endeavors. The increase in buildings is the result of foreign companies establishing offices and investing in the nation.
As a result of the Kingdom’s recent endeavours at development and modernization, real estate players in Saudi Arabia now have an even greater obligation to guarantee that property reserves are strategically capitalised to maximise profits while simultaneously increasing the quality of life.
One major local real estate player that came under World Business Outlook’s radar during its hunt for a real estate company leader in Saudi Arabia, is Azad Properties. With an asset class ranging from commercial and retail to medical and industrial, Azad Properties has a diverse portfolio that covers all forms of properties. Their client base extends from global retailers to local developers.
Property and asset management, leasing, facility management, tenant relations and collection, strategy, commercial development, property maintenance, risk management, implementing safety measures in commercial and industrial properties, acting as an intermediary between contractors, insurance companies, and tenants, and various marketing services are just a few of the services in which Azad Properties has demonstrated its excellence. World Business Outlook took note of these achievements and commended Azad Properties with the awards, Fastest Growing Asset and Property Management Company in Saudi Arabia 2023 and Most Sustainable Real Estate Investor Saudi Arabia 2023.
Azad Properties boasts a gross leasable area of one million square meters. Through the promotion of major commercial and leisure projects in its portfolio, Azad Properties is demonstrating innovation in real estate. The organisation is devoting much of its resources to the renovation of the cities in the Kingdom, with a particular emphasis on the commercial and entertainment sectors. With the use of a cutting-edge property management system, Azad Properties has been effectively monitoring and addressing any possible problems. Consequently, it managed all of its operations with success and ease.
To preserve its market leadership while still serving the interests of customers, the management of Azad Properties has developed an ambitious plan that includes real estate services, achieves shareholder objectives, and assembles a team of professionals. To fulfill the high standards of Vision 2030, Azad Properties is forming strategic alliances with companies to raise the standard of living in the country.
