HIVE, Rafal Real Estate Development Company and FIM Partners announced their intent to establish a fund of US $150mn. The fund will be managed by FIM Partners, which will support the development of six to eight new co-living projects in Riyadh, aimed at meeting the rising demand for modern, adaptable living and working spaces. The announcement was made at Cityscape Global Riyadh.
The partnership marks an important milestone in Saudi Arabia’s real estate market evolution under Vision 2030. By focusing on innovative co-living developments, it offers investors a valuable entry point into an underserved, high-growth sector while addressing the Kingdom’s growing demand for flexible and affordable housing solutions, said a statement.
“With our first co-living development in Riyadh already announced earlier this year, we are excited to expand our portfolio alongside FIM Partners and Rafal. HIVE’s modern, flexible living solutions will cater to the evolving needs of urban residents, delivering convenience and community in a forward-thinking environment,” said Bass Ackermann, Founder of HIVE.
Elias Abousamra, CEO of Rafal Real Estate Development Company added, “Riyadh is ready for growth in the co-living sector, and this initiative allows us to scale up developments to meet this demand. We are committed to creating communities that offer a combination of modern living solutions and a strong sense of community, aligning with Saudi Arabia’s long-term vision for the housing market.”
The investment strategy aims to create high-quality living environments with long-term value for investors. By capitalising on the demand for modern and affordable co-living spaces, this partnership is well-positioned to offer attractive returns, helping meet both the Kingdom’s housing needs and investor expectations, the statement explained.
Fares Bou Atme, Director of Real Estate at FIM Partners stated, “Saudi Arabia’s real estate sector is undergoing rapid transformation, with co-living playing an essential role, given the substantial need for such an asset class in the market. This partnership will provide investors early access to a promising segment of the market, ensuring substantial returns as the sector matures.”
The co-living strategy targets Riyadh’s growing population of professionals, expatriates, digital nomads, and entrepreneurs, addressing the rising demand for adaptable, community-oriented living and working solutions. With a diverse and mobile workforce driving the demand for such spaces, this initiative offers a unique opportunity for investors to engage with a high-growth market primed for sustained growth, the statement said.