High-end, high-rise properties in demand in Saudi Arabia, says report
There is a greater focus on modern luxury towers in cities like Jeddah and Riyadh, according to Colliers
There is increasing demand for luxury high-rise property developments in key cities across Saudi Arabia, according to a report by Colliers International.
Rising incomes and changing lifestyles are driving demand for more high-end developments in cities such as Jeddah, Riyadh, Damman, Khobar and Dhahran, the real-estate firm said.
It noted Jeddah’s Corniche as a prime location for quality new developments, such as the 1km-tall Kingdom Tower, which is due for completion in 2018.
The greater mix of apartment types and sizes offered by new high rise developments is also catering to demand from buyers, Colliers noted.
“The strong demand for modern luxury high rise residential properties across Saudi Arabia is being demonstrated by high absorption levels among existing towers and pre-booking among forthcoming supply,” says Imad Damrah, Managing Director, Colliers International in Saudi Arabia.
“While there is clearly a fundamental change occurring in this market segment, developers need to pay close attention to demand characteristics. Those developers with a strong reputation of delivery and partnership with iconic brands and commitment to luxury design, fittings and finishes will be best positioned to capitalize on the market opportunity. Furthermore, we see a clear gap appearing in the mid-market segment which is showing signs of undersupply given the overall shift in the market.”
