Market experts have singled out the pandemic with new viruses as risks for the market but have also noted several other factors that may affect the Kingdom’s real estate.
The outflow of foreigners, especially Chinese citizens, is the blow to residential and commercial real estate. The situation will not change soon, so the country’s market and authorities have to adapt and face new challenges.
In addition to COVID-19, there are three major market risk factors: local purchasing power, irrelevant reforms and bills, and international travel restrictions.
So far, the vaccination program has been wide-ranging and successful, but there is no guarantee that the vaccine can handle any new and unexpected variation of the coronavirus. Indeed, the opposite is most likely. Therefore, planning based on vaccination coverage is no longer justified.
Domestic consumers will be the main market driver in 2022. They are end consumers, and they buy real estate for personal use and not investments, so they will think about purchasing real estate longer than foreigners.
Housing near public facilities, such as universities, will remain highly popular with buyers. This also applies to branded residential complexes.