Knight Frank, a global real estate consultancy, has opened an office in Riyadh, Saudi Arabia, in a move to expand its footprint in the Middle East.

With strong fundamentals, increasing urbanisation and a healthy non-oil sector, Saudi Arabia is the largest market in the GCC in terms of both GDP (gross domestic product) and population.  This in turn has led to increasing demand for real estate across most sectors, from residential to hospitality, said the company in a state

As the population continues to grow and the government looks to implement reforms in the real estate sector, Knight Frank anticipates continued interest in the kingdom from overseas investors. This is borne out by the number of international clients searching for high-quality office space, while regional investors focus on residential real estate investment.

Stefan Burch, general manager of Knight Frank Saudi Arabia, said: “We expect demand for real estate in the kingdom to continue to grow in the short to medium term.”

“With widespread reforms, such as foreign ownership of shares on the stock market and the government’s drive for greater transparency in the real estate sector, Saudi Arabia looks set to benefit from additional capital inflows, despite headwinds from lower oil prices.

“While it is too early to judge the final impact of the proposed tax on white land, it does signal the government’s appetite to engage with issues related to urban regeneration and future development. We believe that this is important and that investors – both domestic and international alike – will respond positively to this development,” he added. – TradeArabia News Service