Key regions: France, United Kingdom, Australia, Japan, China
The Residential Real Estate Leases market in Saudi Arabia is experiencing significant growth and development in recent years. Customer preferences in the market are shifting towards renting residential properties rather than purchasing them. This can be attributed to various factors such as changing demographics, lifestyle preferences, and financial considerations. Younger generations are increasingly opting for the flexibility and convenience of renting, as it allows them to easily relocate for job opportunities or personal reasons. Additionally, the rising cost of homeownership and the desire for a hassle-free living experience are driving more people towards renting. One of the key trends in the market is the increasing demand for high-quality rental properties. As the economy grows and disposable incomes rise, individuals are seeking more luxurious and modern living spaces. This has led to a surge in the construction of upscale residential complexes and the renovation of existing properties to meet these evolving customer preferences. Landlords and property developers are investing in amenities such as swimming pools, gyms, and communal spaces to attract tenants and differentiate their offerings in the competitive market. Another trend in the market is the rise of co-living spaces and serviced apartments. With the influx of expatriates and international students, there is a growing demand for shared accommodation options that provide a sense of community and convenience. Co-living spaces offer fully furnished units with shared amenities, while serviced apartments provide a hotel-like experience with housekeeping and maintenance services. These alternative housing options cater to the needs of transient populations and individuals who prefer a more social living environment. Local special circumstances in Saudi Arabia also contribute to the development of the Residential Real Estate Leases market. The government's Vision 2030 initiative, aimed at diversifying the economy and reducing dependence on oil, has led to increased investments in the real estate sector. The development of new cities and mega projects, such as NEOM and Qiddiya, has created opportunities for residential leasing and attracted both local and international investors. Additionally, the recent implementation of regulations and reforms to protect tenants' rights and improve the transparency of the rental market has instilled confidence among renters and landlords alike. Underlying macroeconomic factors further support the growth of the Residential Real Estate Leases market in Saudi Arabia. The country's population is growing rapidly, driven by a combination of natural growth and immigration. This population growth, coupled with urbanization and a young demographic profile, creates a strong demand for housing. Furthermore, the government's efforts to stimulate economic growth and diversify the economy have resulted in increased job opportunities and higher incomes, enabling more individuals to afford rental properties. In conclusion, the Residential Real Estate Leases market in Saudi Arabia is witnessing significant growth and development due to shifting customer preferences, the demand for high-quality rental properties, the rise of co-living spaces and serviced apartments, local special circumstances such as government initiatives and regulations, and underlying macroeconomic factors such as population growth and economic diversification. The market is expected to continue evolving as the country's economy expands and consumer preferences continue to change.
Data coverage:
Figures are based on total and average revenue of residential apartment leases.Modeling approach:
Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.Forecasts:
We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.Additional Notes:
Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.
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