Latest news with #FaisalDurrani
Arab News
3 days ago
- Business
- Arab News
Riyadh emerging as global super hub amid economic boom: Knight Frank
RIYADH: Saudi Arabia's capital is rapidly transforming into a leading global wealth hub, fueled by the Kingdom's successful economic diversification under Vision 2030, a recent Knight Frank report said. The Riyadh edition of the 'Emerging Wealth Hub' series noted that the Saudi capital is transitioning from an oil-dependent economy to a powerhouse for finance, culture, and lifestyle, attracting multinational corporations, investors, and expatriates. Surging demand for commercial and residential real estate, coupled with major infrastructure projects, is positioning Riyadh as a future-ready super hub. A key driver has been the Regional Headquarters Program, which has already exceeded its 2030 target, with 600 global firms, including Bechtel, PwC, and Northern Trust, setting up regional bases in Riyadh. This influx has pushed Grade-A office vacancy rates down to just 2 percent, while prime office rents have skyrocketed by 23 percent in the past year and 84 percent since 2020. The city's booming startup ecosystem, supported by government incentives, advanced digital infrastructure, and a growing talent pool, complements its rise as a financial and business epicenter. Amar Hussain, associate partner in research for the Middle East and North Africa region at Knight Frank, noted that Riyadh's strategic vision, economic growth, and commitment to sustainability 'positions it as a leading global wealth hub of the future, attracting talent, investment and tourism on an unprecedented scale.' He added: 'Its global positioning as a leisure destination will only increase further when the eyes of the world turn to the city for the 2030 World Expo and the 2034 FIFA World Cup.' According to the report, the Kingdom issued over 160,000 new business licenses in the last quarter of 2024 — a 67 percent annual increase — bringing the total number of registered businesses to 1.6 million. The national unemployment rate has fallen to a historic low of 7 percent. Partner and Head of Research for the MENA region at Knight Frank, Faisal Durrani, said: 'The private sector is booming, with new business licenses up by two-thirds in a single year and vacancy rates for grade-A offices among the lowest in the world.' Durrani added: 'This wave of entrepreneurialism is both a result of and a catalyst for Riyadh's evolving business environment, and the city's ability to attract human and financial capital is accelerating its emergence as a future-ready global wealth hub.' To accommodate future demand, Riyadh's office space is projected to nearly double from 5.5 million sq. meters to 9.8 million sq. meters by 2027, supported by government-backed infrastructure projects and growing institutional investment. In an interview with Arab News in June, Emmanuel Durou, technology, media, and telecommunications leader at Deloitte Middle East, highlighted the Kingdom's supportive business environment, which includes government incentives, substantial funding mechanisms such as venture capital and private equity, and vibrant incubator ecosystems, including Garage 46 and Impact 43. Also speaking to Arab News in June, Jasem Al-Anizy, partner in corporate finance at Addleshaw Goddard KSA, shed light on the legal structures that are proving effective in the nation. 'Saudi startups have historically preferred an offshore ring-fencing of intellectual property assets by holding and protecting intellectual property interests in a standalone sister company based in an offshore jurisdiction,' he explained to Arab News. 'This has helped startups in scaling globally and simplifies exit strategies,' Al-Anizy said. Sustainability and liveability take center stage Riyadh is integrating sustainability into its rapid expansion, with initiatives like the King Abdullah Financial District — the world's largest LEED Platinum-certified mixed-use business hub — and the Mostadam green building rating system. The Green Riyadh program, which aims to plant 7.5 million trees, is enhancing air quality and urban livability. 'Urban mobility in Riyadh is being redefined through major investments in infrastructure,' said Harmen De Jong, regional partner and head of consultancy for the MENA region at Knight Frank. Major transport upgrades, including the Riyadh Metro, the expansion of King Khalid International Airport, and the 220-km Sports Boulevard, are improving connectivity and reducing congestion. 'These transport enhancements are not only reducing congestion but also improve air quality and overall urban resilience,' De Jong said, adding: 'Combined with the rise in major multinationals opening offices in the city and high-quality residential and leisure developments, Riyadh has a uniquely compelling offer as a live, work, play destination both within the GCC (Gulf Cooperation Council) and globally.' Leisure, tourism, and global events fuel growth Riyadh is fast becoming a premier leisure destination, with Riyadh Season 2024 drawing 18 million visitors. The city's successful bids to host the 2030 World Expo and the 2034 FIFA World Cup are set to amplify its global profile, with the Expo alone expected to generate an economic impact of $94.6 billion. Tourism is booming, with Saudi Arabia surpassing its original Vision 2030 target by welcoming 106.2 million visitors in 2023. The new goal is 150 million visits by 2030, supported by visa-free entry for 66 countries and the launch of Riyadh Air. Hotel supply is expanding rapidly, with 30,000 rooms expected by 2027. Inbound tourism spending in the Kingdom surged to a record SR153.61 billion ($40.95 billion) in 2024, marking a 13.82 percent annual increase, according to data from the Saudi Central Bank. The rise also pushed the Kingdom's travel balance surplus to its highest annual level yet, SR49.78 billion, up 7.81 percent from the previous year. Residential market soars amid surging demand Riyadh's residential sector is experiencing unprecedented growth, with apartment prices increasing by 75 percent and villa costs by 40 percent since 2019. In 2024 alone, prices rose by 10.6 percent for apartments and 6.3 percent for villas, while sales volumes jumped 44 percent year-on-year. New Premium Residency Visas, linked to property ownership, are opening the market to international investors. With 305,000 new homes needed in the next decade, developers and investors have significant opportunities ahead. Knight Frank's Hussain said: 'With evolving buyer profiles, increasing international interest and sustained local demand, Riyadh's housing market is positioned for continued expansion and diversification.' He added: 'Our latest projections highlight the scale of opportunity for investors and developers in one of the region's fastest-moving residential markets.'
The National
4 days ago
- Business
- The National
How to own property in Saudi Arabia
A whole new property market is to open up to international buyers and it is from the Middle East's largest economy. Starting in January 2026, Saudi Arabia will allow foreign investors to buy property in the kingdom. It has left global investors eager to find out how they can tap into Saudi Arabia's fast growing real estate market, which is expected to reach more than $94 billion by 2028. But how easy will it be for a foreign investor to buy property in the kingdom? Will there be a language barrier? Are the kingdom's regulatory systems able to work with foreign buyers yet? We explore these questions and more on this episode of Business Extra, where host Salim A Essaid hears from Faisal Durrani, a partner and head of research for the Middle East and North Africa at Knight Frank Middle East.
Arabian Post
08-07-2025
- Business
- Arabian Post
Dubai Ultra‑Luxury Property Boom Shows No Slowdown
Dubai's ultra‑luxury real estate market surged in April to June 2025, with transactions for homes priced above $10 million reaching US $2.6 billion, a 37 % rise from the previous quarter and a 63 % increase year‑on‑year, according to London‑based researcher Knight Frank. The emirate recorded 143 such deals in Q2, up from fewer in Q2 2024, underscoring its dominance in the global super‑prime segment. Palm Jumeirah held its status as the top destination for high‑end buyers, with La Mer following closely behind. Both areas have seen robust developer confidence, evident in pipeline projects like Dar Global's Trump Tower and Arada's twin‑tower Akala on Sheikh Zayed Road, aimed at the ultra‑rich. Knight Frank's global data shows Dubai remained the world's busiest market for homes over $10 million throughout 2024 and continued its leadership into Q2 2025. In Q1 2025 alone, 111 such homes sold— the strongest first‑quarter tallies ever recorded. ADVERTISEMENT Experts attribute the surge to a growing pool of ultra‑high‑net‑worth individuals attracted by tax‑friendly policies, infrastructure, and lifestyle amenities. Knight Frank's 'Destination Dubai 2025' report indicates that over US $10.3 billion in private capital, from buyers in India, Saudi Arabia, the UK, and East Asia, is earmarked for Dubai's residential market. Faisal Durrani, Head of Research for MENA at Knight Frank, noted that total luxury home sales value has risen by 282 % since 2020, and that Dubai almost matched London and New York combined in transactions over $10 million in 2024. Villa sales have been especially strong. In 2024, 68.5 % of all homes priced over $10 million were villas—a sharp increase from around 52 % in 2022–23—reflecting UHNWI preference for standalone luxury residences. Despite high demand, supply at this price tier remains limited. Listings for homes over $50 million have plunged—from 37 to just nine—prompting developers to speed up villa construction. Nearly 9,000 villas are expected by the end of 2025, with a further 19,700 slated for completion next year. This supply‑demand imbalance has pushed prices higher: villa values rose approximately 20 % during 2024 and prime neighbourhoods like Palm Jumeirah and Emirates Hills saw quarterly price increases of around 20 %. In Emirates Hills alone, land prices now range up to AED 7,154 per square foot, with some high‑end plots trading at over AED 200 million. Still, despite rising costs, Dubai's luxury home market offers relative affordability. A million dollars buys 91 sqm of prime property in Dubai, compared with just 33 sqm in London and 34 sqm in New York. However, analysts stress that several risks could temper growth. A sharp global economic downturn or a drop in oil prices might undermine demand, potentially deflating the market. Additionally, strains on infrastructure and rising rental costs—up to 20 % in some areas in 2024—highlight challenges in managing Dubai's rapid expansion. Still, momentum remains strong. Much of the surge reflects rising global wealth flows, particularly from India, Saudi Arabia, the UK, and East Asia, and government efforts to enhance Dubai's appeal. High‑net‑worth buyers are favouring off‑plan villas and branded residences in locations such as Dubai Marina, Dubai Hills Estate and Emirates Hills.
Arabian Business
08-07-2025
- Business
- Arabian Business
Dubai real estate: Luxury property sales reach record $2.6bn in Q2 2025
Sales of homes priced above $10 million in Dubai hit an all-time high of $2.6 billion in the second quarter of 2025, according to research from global property consultancy Knight Frank. The figure represents a 37 per cent increase from the $1.9 billion recorded in Q1 2025 and a 63 per cent rise compared to Q2 2024. The total number of $10 million+ sales during Q2 reached 143 transactions – a 52 per cent increase on Q2 2024 – including 22 deals worth more than $25 million. Palm Jumeirah leads Dubai's record-breaking luxury property market For the first time since Q2 2023, apartments outpaced villas in the $10 million+ segment, with 80 apartment sales compared to 63 villas. The Palm Jumeirah led locations for $10 million+ sales with 28 properties changing hands, while La Mer recorded 23 transactions and Downtown Dubai saw 16 deals. Knight Frank's Prime Index for Dubai, which tracks values across 10 key luxury communities, averaged AED 3,850 per square foot in Q2 – 18 per cent higher than Q2 2024 (AED 3,272 per square foot) yet virtually unchanged from Q1 2025. 'The record sales in the luxury price bracket are in line with the findings of our latest Destination Dubai report, which highlights the sustained and rising demand among global and domestic high-net-worth individuals for homes in the emirate,' said Faisal Durrani, Partner – Head of Research, MENA. 'The total value of all homes sold in Dubai has increased by 282 per cent since 2020, and in 2024 it was once again the world's busiest market for $10 million+ homes, recording 435 sales in this exclusive price bracket and almost equalling the number of $10 million+ home sales in London and New York combined.' Dubai property millionaires increase 79.5% as accidental wealth surges Dubai retained this position during Q1 2025. Durrani noted that the city's residential market continues to mature, with the number of homes being sold within 12 months of purchase declining from around 25 per cent in 2008 to 4-5 per cent today. Knight Frank's research revealed 110,000 residential units valued above $1 million at the start of Q2 2025, representing 17.7 per cent of the total 624,000 homes sold in the city since 2002. The combined value of these properties is estimated at AED 994 billion, or $271 billion. About 19 per cent of these $1 million homes (21,000 units) are rented, while 37,000 are owned by 'accidental millionaires' – purchasers who bought properties for less than US$1 million that are now worth more due to price inflation. The rising popularity of Dubai as a residential destination is creating opportunities for investors and developers targeting supply gaps. The city welcomed almost 170,000 new residents last year, while total housing stock rose by just over 30,000 units. 'The number of accidental millionaires in Dubai has increased by an average of 79.5 per cent over the past three years. This suggests most homes are being held as primary residences, second homes, or long-term investments for capital gains, reflecting strong confidence in Dubai's residential market among the wealthy. This also mirrors our own market experience where we have found the strongest level of demand for purchasing a home as a primary end user is amongst ultra-high-net-worth individuals,' Shehzad Jamal, Partner – Strategy & Consultancy, MENA said. Durrani added that there appears to be some rebalancing this year, with the mainstream end of the market registering sharper falls in homes available to purchase. Knight Frank's Prime Index for Dubai includes the Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Jumeirah Islands, La Mer, District 1, Al Barari, Tilal Al Ghaf, Dubai Hills Estate and Jumeirah Golf Estates.
Khaleej Times
08-07-2025
- Business
- Khaleej Times
Dubai's $10 million+ homes market smashes records with $2.6 billion of sales in Q2
Sales of $10 million+ homes in Dubai hit an all-time high of $2.6 billion in the second quarter of 2025, data showed on Tuesday. The record performance, revealed in the latest research from global property consultancy Knight Frank, was 37 per cent ahead of the $1.9 billion recorded in Q1 and an impressive 63 per cent uplift on Q2 2024. The total number of $10 million+ sales during Q2 hit 143 – a 52 per cent increase on Q2 2024 – including 22 transactions for more than $25 million. Notably, for the first time since Q2 2023, apartments outpaced villas in the $10 million+ segment, with 80 apartment sales, compared to 63 villas. The Palm Jumeirah was once again the leading location for $10 million+ sales, with 28 properties changing hands, while La Mer (23) and Downtown Dubai (16) rounded off the top three busiest $10 million+ markets in the city. Knight Frank's Prime Index for Dubai, which tracks values across 10 key luxury communities, averaged Dh3,850 per square foot in Q2 – 18 per cent higher than Q2 2024 (Dh3,272 psf) yet virtually unchanged from Q1 2025. This indicates that rising sales volumes and healthy market activity, as opposed to cost inflation, underlie the growth in total sales value. Faisal Durrani, Partner – Head of Research, Mena, said: 'The record sales in the luxury price bracket are in line with the findings of our latest Destination Dubai report, which highlights the sustained and rising demand among global and domestic high-net-worth individuals for homes in the emirate. 'The total value of all homes sold in Dubai has increased by an incredible 282 per cent since 2020, and in 2024 it was once again the world's busiest market for $10 million+ homes, recording 435 sales in this exclusive price bracket and almost equalling the number of $10 million+ home sales in London and New York combined. The city has retained this position during Q1 2025 as well. Separately, Dubai's residential market continues to mature, as evidenced by the rise in the number of genuine end users and the decline in the number of homes being sold within 12-months of purchase from around 25 per cent in 2008 to 4-5 per cent today'. Accidental millionaires Knight Frank's research, which tracks the price of every freehold home in the city, has also revealed the rising number of 'property millionaires' across Dubai. At the start of Q2 2025, there were 110,000 residential units (out of 624,000 total sold units since 2002) valued above $1 million, which equates to 17.7 per cent of the total number of homes sold in the city. The combined value of these homes is estimated to be Dh994 billion, or $271 billion. About 19 per cent of these $1 million homes (21,000 units) are rented, indicating the size of Dubai's luxury buy-to-let market. However, 37,000 are owned by 'accidental millionaires' – purchasers who bought properties for less than $1 million that are now worth more, solely due to price inflation. Shehzad Jamal, Partner – Strategy & Consultancy, Mena, said: 'The number of accidental millionaires in Dubai has increased by an average of 79.5 per cent over the past three years. This suggests most homes are being held as primary residences, second homes, or long-term investments for capital gains, reflecting strong confidence in Dubai's residential market among the wealthy. This also mirrors our own market experience where we have found the strongest level of demand for purchasing a home as a primary end user is amongst ultra-high-net-worth individuals.' The Palm Jumeirah has Dubai's highest concentration of $1 million+ homes – 9,071 as at the start of Q2 2025, followed by Downtown (8,376) and Dubai Hills Estate (6,138). Collectively, the city's top ten communities account for almost 47,000 such homes – almost 50 per cent of 'property millionaire' homes in Dubai. Supply gap The rising popularity of Dubai as a place to live is opening further opportunities for investors and developers looking to target supply gaps. The disparity between supply and demand is best reflected in the fact that the city welcomed almost 170,000 new residents last year, while the total housing stock only rose by a little over 30,000 units. Durrani said: 'Our teams are today tracking in excess of 350,000 homes that are due to be completed by the end of 2029. Specific price and home size bands appear to be especially poorly catered for. For example, the number of homes available for sale in the $10 million+ bracket fell by 39 per cent last year, down from 4,119 to 2,493. At the same time, the number of homes available in the $25 million+ bracket saw more than double the rate of decrease (85 per cent), down from 583 to only 86 properties. There appears to be some rebalancing this year, with the more mainstream end of the market registering sharper falls in homes available to purchase.
