Knight Frank stated in a recent report that Saudi Arabia may need to construct 115,000 homes annually over the next six years to meet the growing demand from young people and achieve the goals of Saudi Vision 2030, which aims to raise home ownership to 70%, Invest-Gate reports.

The home ownership rate reached 63.7% in 2023.

Knight Frank estimates that demand for housing will reach approximately 825,000 housing units, with 35% of that demand concentrated in the capital, Riyadh.

Pressure on housing supply in the Kingdom has intensified in recent years, as many companies have relocated their employees to Riyadh and established regional headquarters in the capital, resulting in a 35% increase in rents over the past three years.

The population of Riyadh is projected to grow from 7 million, according to the 2022 census, to 9.6 million by 2030, consisting of 4.1 million Saudis and 5.5 million residents.

This increase represents a 38% rise from the population levels in 2022 and corresponds to a compound annual growth rate of 4.1%, indicating a growing demand for additional housing units from Saudi citizens.

Mohamad Itani, Partner and Head of Sales and Marketing for Residential Projects at Knight Frank, noted that the population of Riyadh is expected to rise to 9.6 million from 8 million. He added that there are currently one million housing units under construction and a demand for approximately 825,000 units by 2030.

Knight Frank’s report anticipates that, as a result of population growth, the demand for additional housing units from Saudi citizens in Riyadh between 2024 and 2034 is estimated to be around 305,000 units.