Investor and tenant demand is driving development of modern luxury high-rise developments in Jeddah, Riyadh and the ‘tri-city’ area, according to new data from Colliers International, continuing the “transformation” of the residential landscape since 2010.
However the trend is also leading to a gap in affordable housing, which boasts simpler design and smart features.
Imad Damrah, MD for Colliers International in Saudi Arabia, said: “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. 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 capitalise 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.”
