Tetra Tech Secures Major Contract To Enhance Uk Water Infrastructure

Construction Week

Knight Frank: Saudi Branded Residential Sector Set For $953 Million Boost$953 mn (SAR3.57 bn) of private capital is set to be deployed into Saudi Arabia’s branded residential market, with more than two-thirds of Saudi nationals surveyed intending to buy a branded residence, according to The Saudi Report 2025 from global property consultant Knight Frank. Knight Frank’s flagship survey of 1,037 households across the kingdom, including 100 Saudi-based expats, carried out in partnership with YouGov, found that Saudi nationals plan to spend $902.8 mn (SAR3.38 bn) on branded homes, with expats prepared to purchase branded residential real estate worth a further $50 mn (SAR187.7 mn). The likelihood of buying a branded residence is closely correlated with income and social status, according to Knight Frank. Indeed, 81% of Saudi nationals earning over SAR50,000 a month are ‘likely’ to purchase a branded residence in the kingdom. The group with the highest desire to own a branded residence (at 89%) are Saudi nationals earning between SAR 60,000 and 70,000 per month, said Knight Frank. Faisal Durrani, Partner – Head of Middle East Research, said, “The branded residential sector in Saudi continues to emerge, with locations such as Riyadh’s Diriyah Gate, Al Ula and Jeddah standing out as key hotspots for branded residential operators and developers. Historically, the branded residential market in the kingdom has been a relatively small segment of the residential sector, but this is changing rapidly. “The prestige factor, but more importantly the virtual guarantee of world-class facilities and property management, combined with the ability to instantly access a certain lifestyle, ‘live the brand’ and place your home in a rental pool are adding to the allure of branded residential acquisitions in the kingdom. Indeed, two-thirds of Saudi nationals in our survey have declared an intent to purchase a branded home”. Knight Frank said that perhaps due to uncertain long-term residency plans, and/or yet to emerge clarity on international home-ownership rules and regulations, Saudi-based expats with monthly incomes of over SAR 30,000 are least likely to purchase a branded home. Just under 50% of this group is ‘likely’ to purchase a branded residential home. 36% of all survey respondents are keen to purchase a branded home within the next two to five years, with a further 28% interested in obtaining a branded residence within the next one to two years. Notably, just 15% of those surveyed are keen to make a branded residential acquisition this year. Mohamad Itani, Partner – Partner, Project sales & Marketing, KSA explained, “The apparent hesitation among Saudi nationals and Saudi-based expats to purchase a branded home in 2025 could be linked to a limited range of branded residential developments and/or perhaps high pricing – branded residences often command a significant price premium and in Riyadh some branded residences are being sold for prices in excess of SAR 65,000 per square metre, which is well above the non-branded market-wide average of around SAR 5,500 per square metre. “Even for the highest earners, the desire appears to be relatively low, with just 39% of Saudi nationals earning in excess of SAR 80,000 per month keen to purchase a branded home this year”. Knight Frank said branded residences are typically a result of collaborations between renowned brands (hospitality, or non-hospitality) and developers, pooling expertise in design and operations to craft exceptional properties, intertwined with a luxury lifestyle. Developers gain the rights to market and sell properties bearing the brand’s typically prestigious trademark, with the brand often assuming oversight and service responsibilities to uphold exemplary standards. This partnership allows numerous advantages for owners, including the assurance of service and access to an unparalleled array of facilities. According to Knight Frank, there are two types of branded residences: According to Knight Frank, both Saudi nationals and Saudi-based expats are keen, first and foremost, to buy a branded home for personal reasons, with 39% keen on using the acquisition as a main residence. This figure rises to 51% among Saudi nationals earning between SAR 60,000 and 70,000 per month. A further 31% aspire to buy a branded home for their children or extended family. Those especially keen on accommodating their children and extended family in branded homes are Saudi nationals whose monthly income ranges from SAR 70,000 to 80,000 (48%). Just under a fifth (19%) would look to make the purchase purely for investment reasons. Knight Frank notes that while two-thirds of Saudi nationals and Saudi-based expats are keen to purchase a branded residential property, there are ways in which this demand can be further bolstered. The high cost associated with purchasing a branded home may be a barrier for many Saudi households, believes Knight Frank, particularly when you consider that the average monthly income of Saudi nationals in Riyadh stands at SAR 25,995, while in Jeddah the figure is lower still at SAR 15,577. The main factor that would make a branded home purchase more attractive to potential buyers would be the availability of ‘financing plans offered by local banks’ (39%). For expats, this rises to 47% and likely in large part stems from the complexities around securing home financing, especially for those looking for income multipliers in excess of 8-10 times. Durrani said, “The branded residential market in the Kingdom is still in its nascency, with just 1,775 existing branded residential units nationwide, with a further 2,500 units due by 2028. It is not surprising that the lack of branded property types and sizes has been cited as the second most important factor by potential buyers that needs to be addressed to make the sector more attractive. Over half of those earning between SAR 60,000 and 70,000 per month cited this as their most important consideration, hinting at an opportunity for developers to deepen this segment of the market further”. Linked to this is the limited number of branded residential operators in the kingdom at present. 33% of Knight Frank’s survey respondents – both Saudi nationals and Saudi-based expats – claim the shortage of brands operating branded residential developments is another area they would like to see addressed. Alongside the greater availability of financing from local banks (44%), this ranked jointly as the most important area of concern for Saudi nationals earning between SAR 50,000 and 60,000 per month. Itani concluded, “More brands are lining up and eyeing opportunities across the kingdom, which will no doubt help to satisfy the growing appetite for branded homes. The key for developers will be to offer branded homes that are on par with what is available in global gateway cities not just in terms of product, but the accompanying services, experience and of course pricing, will be critical factors in determining success”.

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17 April 2025

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Tetra Tech Secures Major Contract To Enhance Uk Water Infrastructure

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