ALBAWABA – Riyadh, the capital of Saudi Arabia is expected to rank within the top 15 most rapidly growing cities by 2033, while being the only non-Asian city on the list, according to the Savills Growth Hubs Index in the most recent edition of Savills' global thought leadership program Impacts, aligning with the kingdom's Saudi Vision 2030 plan.
The Vision 2030 initiative of Saudi Arabia intends to diversify the economy and reduce the country's reliance on oil while simultaneously developing Riyadh as a residential and commercial center across the country, according to Arab News, with the city's 26% projected population expansion in the coming decade likely to spur government investment on big infrastructure projects and better facilities and service.
According to the Savills report, retail demand is increasing around popular tourist destinations as a result of growing tourism, while the migration of over 120 multinational corporations' regional headquarters to Saudi Arabia in Q1, representing a 477% YoY increase, is the primary driver of Riyadh's office market development. This is a result of Saudi Arabia's regional headquarters program, which provides support services and incentives including a 30-year tax exemption.
In order to identify high-growth cities with increasing wealth and growing economies, Savills explicitly looked at the economic strength pillar and projected it until 2033. In the top 15, Chinese and Indian cities are ranked with five places each, Vietnam is ranked two, while the Philippines, Bangladesh, and Saudi Arabia are ranked one each.
Paul Tostevin, director and head of Savills World Research, said in a press statement that “as global growth pivots further from west to east, the real estate implications for cities multiply. The new centres of innovation will become magnets for growing and scaling businesses, and this will underpin demand for offices, manufacturing and logistics space, and homes,” adding that “rising personal wealth and disposable incomes will drive opportunities for new retail and leisure developments."
