Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Investments»Retailtainment, tourism boom, and strategic investments fuel growth
    Investments

    Retailtainment, tourism boom, and strategic investments fuel growth

    July 14, 20255 Mins Read


    Saudi Arabia, Riyadh – CBRE Middle East, a global leader in commercial real estate, released its Q2 2025 Saudi Arabia Real Estate Market Review, highlighting strong growth across key sectors.

    Saudi Arabia’s robust economic growth, driven by a 4.9% expansion in non-oil GDP, is fueling strong performance across the real estate market. Real GDP in Q1 2025 expanded by a robust 3.4%, though the full-year forecast has been adjusted to approximately 3.5% due to a more conservative outlook for the oil sector. The Kingdom remains committed to its Vision 2030 initiatives and fostering sustainable economic growth.

    The second quarter of 2025 witnessed a dynamic and evolving real estate landscape in Saudi Arabia, driven by a combination of policy adjustments and strategic initiatives. The implementation of the Real Estate Transaction Tax (RETT) and strategic realignments within the construction sector shaped the market dynamics. Moreover, the Kingdom’s logistical prowess improved, with a rise in the Agility Emerging Markets Logistics Index. The Hail region attracted substantial investment, demonstrating its strategic importance, while several major mixed-use developments, such as OSUS EYE in Riyadh, the Pulse Wadi District, and the ongoing advancement of the Dar Al Hijra project in Madinah, underscored the Kingdom’s commitment to economic diversification and urban growth.

    The Office market in Saudi Arabia thrived in Q2 2025, characterized by key trends. The demand for office space, especially Grade A properties in Riyadh, remains high, leading to rising rental rates and exceptionally high occupancy levels. The government’s Regional Headquarters (RHQ) Program continues to drive demand, attracting international companies. The rise in the flex sector and the preference for smaller, efficient office spaces are also notable. Although a limited new supply in 2025 is expected to exacerbate the market dynamics, the outlook is positive, with increased supply anticipated in the coming years, along with strong performance in Jeddah.

    Looking at the Residential real estate market in Saudi Arabia significant growth and investment were witnessed in Q2 2025, particularly in Riyadh. Driven by strong demand, transaction volumes were substantial, with land sales leading the way. Government support and initiatives are actively promoting development and attracting both local and international investors. New project launches, such as Azure’s Lamara project and ROSHN Group’s ALDANAH community, alongside new investment funds, are fueling the sector’s expansion and commitment to addressing the Kingdom’s housing goals.

    Q2 2025 saw a dynamic Retail sector in Saudi Arabia, marked by the rise of Retailtainment and the expansion of entertainment hubs. The increasing integration of entertainment into malls and the substantial investments by Saudi Entertainment Ventures (SEVEN) are key drivers of this transformation. Despite a slight dip in sales during the Eid holiday, the sector is navigating challenges like oversupply and e-commerce through innovative projects and strategic adaptations. Stable rents and occupancy rates in super-regional malls and the addition of new developments are adding to the evolving retail landscape.

    The Hospitality sector in Saudi Arabia experienced remarkable growth in the second quarter of the year, solidifying its position as a leading global travel destination. Driven by a combination of leisure, cultural, and religious tourism, the sector saw a 48% increase in international visitors compared to Q2 2024. The upcoming mega-events, including major sporting tournaments and Expo 2030, are poised to generate substantial demand for accommodation. The pipeline of new hotel projects is also expanding, particularly in Riyadh, and new brand debuts, such as IHG’s EVEN Hotel, are adding to the diversity and appeal of the sector, creating a strong outlook for sustained growth.

    Significant developments in Saudi Arabia’s Industrial and Logistics sector supported the country’s economic diversification efforts in Q2 2025. Robust demand for warehousing continues, despite challenges in finding immediately available, high-quality facilities. A major investment in a USD 7.0 billion cross-country rail corridor will enhance logistics capabilities. Average warehouse rents are increasing, reflecting strong demand. The launch of the Advanced Manufacturing and Production Center and collaborations like the one between Saudi Aramco Technologies and BYD are driving industrial transformation and innovation.

    Matthew Green, Head of Research MENA, comments: “This groundbreaking regulation marks a pivotal moment for Saudi Arabia’s real estate market. By welcoming foreign investment, we anticipate a transformative shift, driving substantial growth in inbound capital over the next five years. This will not only support the ambitious FDI targets but also stimulate private sector development, further diversify the non-oil economy, and generate wealth for landowners. Furthermore, it will foster long-term population growth and economic stability by enabling foreign residents to participate in homeownership, a significant social milestone”.

    About CBRE Group, Inc. 

    CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Small Mistakes Add Up. 4 Mistakes to Avoid When Investing for Retirement.

    Investments

    Five tricks to stop your pension falling short: HALF of workers over 60 don’t have enough – here’s how YOU can catch up fast

    Investments

    Microsoft and Meta fuel $648 billion rally in AI stocks as investments pay off

    Investments

    Here’s a UK property investment that costs just £1 (and can be held inside a Stocks and Shares ISA)

    Investments

    Morgan Wallen walks out with Barry Bonds, Steve Young at Santa Clara concert

    Investments

    Tyson Fury claims he will NEVER return to boxing just weeks after reversing latest retirement

    Investments
    Leave A Reply Cancel Reply

    Top Picks
    Cryptocurrency

    Landmark cryptocurrency bill blocked over concerns about Trump

    Fintech

    Le PDG de HPS au Maroc prévoit l’acquisition d’une fintech avant 2027

    Precious Metal

    XAG/USD strives to hold $33 amid renewed Sino-US trade worries

    Editors Picks

    Konami says “stay tuned” when asked about Metal Gear Solid 4 remaster

    August 28, 2024

    Punjab govt to bring resolution in assembly against Centre’s draft policy on agricultural marketing – ThePrint – PTIFeed

    February 24, 2025

    As new property investors emerge, it’s worth looking north of the London bubble

    June 10, 2025

    The impoverished town where one in four are on housing benefits

    August 25, 2024
    What's Hot

    Gold, silver price today, October 11, 2024: Precious metals record hike on MCX

    October 11, 2024

    United Utilities Group affiche une forte hausse de ses bénéfices pour l’exercice 2025 ; son chiffre d’affaires grimpe

    May 14, 2025

    Bitcoin Rises Above $57,000, Ripple Becomes Biggest Gain

    August 8, 2024
    Our Picks

    US wholesale: Week 31 ‘market pulse’ updates available on key seafood commodities

    July 28, 2025

    UAE Central Bank introduces new Stablecoin regulations

    July 23, 2024

    Once a crypto critic, Donald Trump amasses Ethereum worth millions

    August 16, 2024
    Weekly Top

    Small Mistakes Add Up. 4 Mistakes to Avoid When Investing for Retirement.

    August 3, 2025

    Currency Dominance in the Digital Age

    August 3, 2025

    Five tricks to stop your pension falling short: HALF of workers over 60 don’t have enough – here’s how YOU can catch up fast

    August 3, 2025
    Editor's Pick

    Privacy Threat or Financial Revolution?

    August 19, 2024

    Dow, S&P 500, Nasdaq slide as tariff-pause euphoria gets a reality check

    April 10, 2025

    L’UE donne son feu vert à l’acquisition d’ED&F Man Commodities par Hartree Partners

    April 10, 2025
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.