Saudi Wins Bid for FIFA 2034: A Game-Changer for Real Estate?

Real estate experts speak to REM TIMES on how hosting the coveted football tournament will elevate the Kingdom’s status as a global hub

December 17, 2024 | Deepa Natarajan Lobo | KSA | Developers

Saudi Wins Bid for FIFA 2034: A Game-Changer for Real Estate?

Saudi Arabia’s successful bid to host the FIFA World Cup 2034 marks a historic moment, not only in global sports but also in the Kingdom’s ongoing transformation. As preparations for this landmark event commence, Saudi Arabia is set to undergo a sweeping wave of development, with profound implications for its real estate sector. 

With the eyes of the world turning toward Saudi Arabia, the event is poised to trigger massive infrastructure projects. The construction of state-of-the-art stadiums, luxury hotels, and advanced transportation systems is already underway, laying the groundwork for both the event’s success and a lasting legacy of urban modernization. These developments will not only boost property values but also stimulate demand across commercial, residential, and hospitality sectors. Additionally, urban redevelopment initiatives will create vibrant new districts, further positioning the Kingdom as an attractive destination for local and international investors. 

Real estate experts speak to REM TIMES on how this milestone event will reshape the Kingdom’s property market, unlocking unparalleled potential for growth and development.

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“FIFA 2034 is expected to significantly impact Saudi Arabia's real estate market, particularly by boosting investment opportunities, including public-private partnerships (PPPs). As the Kingdom advances its Vision 2030 goals, such events often catalyse the development of large-scale infrastructure and real estate projects, these projects frequently present opportunities for PPPs, allowing the government to leverage private sector expertise and capital to deliver complex developments. Increased demand for commercial and residential spaces, along with hospitality and retail growth, can attract both local and international investors.

Additionally, the event's global exposure is likely to elevate Saudi Arabia's profile as an emerging real estate market, further enticing foreign direct investment. By integrating PPPs, the Kingdom can accelerate its real estate sector's growth, ensuring sustainable and profitable outcomes for all stakeholders involved. This convergence of factors makes the current environment particularly ripe for investment.”

Talal Raqaban, Partner – Valuation, PPP & Deal Advisory, Knight Frank

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“Saudi Arabia’s hosting of FIFA 2034 is expected to significantly boost its real estate market, driving large-scale infrastructure development and creating substantial investment opportunities. Key areas of growth will include the construction of world-class stadiums, transportation networks, and hospitality facilities. The event will also accelerate the development of smart cities and urban districts, aligning with the kingdom’s Vision 2030 goals and attracting global real estate investors.

The anticipated influx of tourists and expatriates will increase demand for both commercial and residential properties, particularly in luxury housing and retail sectors. Favourable regulatory reforms and the long-term utilization of event infrastructure will further enhance Saudi Arabia’s appeal as a global investment hub, positioning the kingdom’s real estate market for sustained growth well beyond the event.”

Susan Amawi, General Manager, KSA, Knight Frank

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“The World Cup will catalyse extensive infrastructure improvements, including new stadiums, hotels, and transportation facilities. These developments, coupled with urban redevelopment projects, will boost demand for commercial and residential properties nationwide. Increased property values and heightened interest from local and international investors are anticipated.

It will position Saudi Arabia as a global hub for tourism and events, attracting international businesses and investors. This heightened exposure will spur demand for office spaces and housing, while creating job opportunities in construction and services. Aligning with the Kingdom’s goal of attracting 150 million annual visitors by 2030, the World Cup underscores its tourism ambitions. The World Cup preparations will also showcase Saudi Arabia's commitment to sustainability through green building technologies and eco-friendly projects like the NEOM Stadium.”

Parag Bharat Parekh, Business Manager, Property Pro Real Estate

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