Jeddah will experience a $90 billion real estate boom

Jeddah is about to experience a surge in infrastructure and real estate investment. $90bn of real estate and infrastructure projects to be exact.

We are witnessing changes in every nook and cranny of the Kingdom as the tentacles of Vision 2030 encircle it. Jeddah, known as the "second city" of Saudi Arabia and the traditional gateway to the Holy Cities of Makkah and Madinah, is currently undergoing a significant surge of investment that will completely change the city.

By the end of the decade, the city will have undergone a massive revitalization with around 89,000 new homes, 250,000 square metres of office space, and almost 1.4 million square metres of retail space.

Real Estate Forecast

A new "land bridge" that would involve building 1,500 km of railway lines connecting towns and cities between the eastern and western sections of Saudi Arabia will cost close to $14 billion of the entire budget.

An additional $7 billion has been allocated for the Jeddah Islamic Port's expansion, which will increase its container capacity to 20 million, placing it among the top 10 busiest ports in the world.

As in other parts of the Kingdom, programmes related to well-being are given a lot of attention as the government attempts to make Saudi cities more livable and habitable.

Potential for thriving tourism

Due to the success of the Jeddah Season and the Jeddah F1, as well as the ultra-modern, quick rail connections to the Holy Cities, Jeddah's potential as a tourist destination is only now beginning to increase.

The city still has the potential to become a thriving tourism industry, especially given the variety of already-existing attractions and the more mild temperature, compared to the rest of the Gulf region, with hopes to bring 100 million tourists to Saudi Arabia by 2030.

Jeddah's hospitality industry

The hospitality industry in Jeddah could be a potential growth area that has not yet been fully realised.

The tremendous potential of the hospitality industry is supported by the remarkable demand growth brought about by economic diversification initiatives as well as the current surge in leisure and religious tourism.

The government is anticipating a rise in visitor numbers, thus new hotels are being planned to meet the growing demand and as part of the plans for economic transformation.

Jeddah currently has 9,300 rooms under construction or in the planning phases that are anticipated to be finished between now and 2030, bringing the city's total supply to 21,000 rooms. Just 2,700 rooms, or 29% of the total pipeline of hotel supply in Jeddah, are now planned to be created as part of the city's big projects.

What does it mean for the citizens of Jeddah?

The citizens of Jeddah will benefit from enhancements to the city's leisure, cultural, educational, and healthcare facilities thanks to roughly $3.3 billion set aside for well-being projects.

Improved healthcare and educational facilities, in particular, help to raise the standard of living and make cities more desirable places to live. This will help Jeddah maintain its status as the Red Sea's main commercial hub while also making it an even more desirable city to live and work in, supporting the Quality of Life Program that is a part of Vision 2030.

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