Saudi Arabia's Holiday Home Market: A Promising Growth Story After Hotels
Category: Saudi Arabia

According to industry sources, there is a good chance that the Saudi Arabian market will be welcoming to holiday homes or short-stay concepts, just as it has been for hotels, resorts, and theme parks. The demand for luxury holiday homes could lead to an expansion of options for short-stay properties aimed at corporate travelers. However, some industry sources are not sure whether the Saudi Arabian property market has enough options right now to create a scaled-up holiday home marketplace. The Kingdom has only recently started a massive development of new residential capacity in its major cities, which could take 4-5 years to complete. Additionally, there exists peak demand from Saudi nationals and expats wanting to rent long-term.

On the other hand, the Saudi hotel capacity is likely to grow significantly, with an estimated $110 billion being budgeted to "deliver on the Kingdom's hospitality vision." As of now, 17% of the planned hotel supply is in the 3-star or below category. With 56% of the Kingdom's population below 35 years, demand for various accommodation types will likely continue to emerge as a significant consideration for the industry. This could include luxury glamping sites and youth hostels to cater to this increasingly important segment of the market, being mindful of the cultural sensitivities and the need for appropriate adaptations. Overall, the hospitality sector is fast emerging as one of the key lynchpins in the transformative vision laid out for the Kingdom.

02 May, 2023 0 216
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