Knight Frank, the leading international real estate services provider and consultant, has released its Urban Futures report, in which it studied the urbanisation movement in 32 major cities around the globe and its impact on these cities’ property markets.
In its examination of Riyadh, the Saudi capital city, Urban Futures concluded that the accelerating shift of the city’s population from its rural areas to its urban areas is exerting a growing pressure on the Saudi housing market.
The report also explained that the multi-generational household salaries has slightly dimmed how impacted the affordability issue is, adding that taking other factors into consideration, like the average salaries, would give us drastically different results.
Knight Frank’s report expects the issue to grow further in the future as more people move into the city’s central areas for better living standards, which will in turn negatively impact the affordability of house prices which is already a challenge the Saudi market has been dealing with for years now.
Last year, in its Global House Price Index report issued for the third quarter of 2018, Knight Frank rnaked the Saudi property market as the worst performing market out of 57 major global markets. Many other global real estate consultants’ reports agreed with this conclusion, specially considering the fact that, in 2018, the Saudi property market has hit its lowest numbers since 2014.