Saudi Arabia’s Ministry of Investment (MISA) is leading a major delegation in Cannes under the umbrella of Invest Saudi as it looks to connect international investors with opportunities in the kingdom.
Alongside MISA, the Saudi delegation at MIPIM, one of the world’s foremost events for international real estate investors, also includes the Ministry of Municipal Rural Affairs & Housing, the Royal Commission for Riyadh City, the National Housing Company, ROSHN, Ajdan and Retal.
The move comes as international real estate investors are expected to play a key role in delivering a number of key Saudi government initiatives including expanding home ownership, developing the leisure and entertainment sectors and establishing Riyadh as a pre-eminent regional business hub.
MISA said the kingdom currently sees $20.5 billion demand for real estate, with a key driver of opportunity being residential properties.
Residential demand is being driven by concerted government efforts to dramatically increase home ownership – to 70 percent from 57 percent in 2016 – alongside strong population growth which is expected to reach nearly 45 million by 2050.
This translates to at least 1.5 million cumulative housing units needed by 2030, MISA said in a statement.
As well as the residential sector, the Saudi pavilion at MIPIM is also showcasing opportunities in other parts of the industry.
In commercial real estate, MISA said growth is being driven by Saudi Arabia’s emergence as a leading regional business hub, with strong demand driving 4 percent increases in office rents in Riyadh in 2021 as vacancy rates fall in the capital to just 3 percent.
In retail, the growth of the entertainment and tourism sectors are not only driving more international visitors to the kingdom but also likely to mean that an increasing share of domestic income is being consumed locally, the statement added.
Held this week in Cannes, France, MIPIM 2022 is expected to attract over 3,800 exhibitors and attendees from 100 countries.
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