Saudi Arabia sees 'steep decline' in demand for large houses
The kingdom's growing younger population is seeking to move out of their family homes earlier to seek jobs elsewhere in the country.
Saudi Arabia’s property market is seeing a “steep decline” in demand for large houses as more young Saudis move out of their family homes earlier to seek jobs elsewhere, according to estate agent and property consultancy Knight Frank.
Knight Frank is tracking around 555,000 residential units that are under construction in the kingdom and are all due to be developed by the end of the decade. The estate agent believes that most of those properties will be priced north of $1 million.
In an interview with Al-Monitor, Faisal Durrani, partner and head of Middle East research at Knight Frank, outlined some of the main trends the firm has been seeing in the Saudi property market.
“There's a lot of shifting market dynamics at present,” Durrani said. “We've got a relatively young population — 56% of the Saudi population is below the age of 35. And what we're seeing is a deep decline in household sizes because younger Saudis are moving out of their homes earlier.”
