Post-Covid recovery of the real estate sector in Saudi Arabia is led by increasing tourist demand and government spending on infrastructure projects such as the investment in King Salman International Airport.
In 2022, both average daily rate (ADR) and occupancy improved from 2021 as market-wide recovery was supported by the ease of travel and faster visa processing for tourists.
The first three months of the year were the strongest for occupancy performance in Riyadh, reaching 76 percent in March. Meanwhile, Jeddah hotels recorded the highest occupancy performance in May at 59 percent. The facilitation of a tourist visa for Gulf residents and the visa on arrival extension to UK, U.S. and European Union residents aims to support the country’s ambition to welcome 100 million visitors a year by 2030.
Saudi Arabia is investing in infrastructure to drive numbers, while Dubai is investing in technology to adopt “Smart Gates” at Dubai airport and looking to make air taxis a reality.