The launch of the Riyadh Metro, a $22.5bn transport project scheduled to be operational in 2019, is likely to create new property hotspots in throughout Riyadh, according to a report by Knight Frank.
The report investigates the impact of new infrastructure on real estate values in the Kingdom’s capital. Commenting on the report, Knight Frank Research Manager Raya Majdalani says “The Riyadh Metro is set to have a marked effect in relation to real estate dynamics and the ability to spur meaningful urban regeneration.”
At a glance:
- According to Knight Frank, real estate is forecast to double its contribution to economic output in Saudi Arabia in the period to 2030.
- Rapid population growth has seen the Kingdom respond with urban regeneration initiatives including mixed-use communities and large-scale infrastructure projects
- The opening of the Riyadh Metro is expected to help drive real estate demand across the capital, including in secondary locations.
Recently introduced strategic reforms aimed at encouraging foreign investment and strengthening the non-oil sector have placed a focus on real estate which is forecast to double its contribution to economic output throughout the period to 2030, says Knight Frank.
The implementation of various urban regeneration initiatives including mixed-use communities and large-scale infrastructure projects are expected to act as catalysts for the real estate market.
The Riyadh Metro is one of the key infrastructure projects that is taking shape and is set to dramatically alter the dynamics of both residential and commercial real estate markets. Whilst it is too early to quantify the effect on capital values, land values and rental rates, an analysis of international benchmarks shows that mass transit systems have the potential to be a strong driver for growth as a result of improved connectivity, says Knight Frank.
The Riyadh Metro is planned to cover 176 kilometres which will link 85 train stations, including the major King Abdullah Financial District (KAFD) Metro Station, which will be designed by Zaha Hadid Architects.
To view The Riyadh Metro report, visit the Knight Frank website.
For more information or to discuss the findings of the report, email Raya Majdalani, Research Manager of Knight Frank via the contact details below.