Project Description

Market Assessment of the Property Management Sector in KSA

  • The Saudi property management market, valued at SAR41.8B, is projected to reach SAR56.1B by 2030 (5.0% CAGR), fueled by growth in construction, economic diversification, government initiatives such as Sakani and regional HQ program and growth in e-commerce and industrial sector.
  • Outsourced property management market for strip retail and warehouse are projected to grow at a CAGR of ~8.3% and 8.8% respectively, outpacing the overall outsourcing market growth (~8%)
  • Regional retail malls is the adjacency that can be explored to expand. The outsourced PM market was estimated to be SAR2.6B in 2024 and expected to grow at a CAGR of ~8% during 2024-2030
  • Outsourced (third-party) PM market is highly fragmented with no company accounting for >6% market share. Key international players such as JLL, CBRE, Savills, mainly play on their reputation and engagement through offering in early stage of property development. Local/smaller players focus on their niche segments (region, sector etc.)
  • Existing Strip Retail and Warehouse portfolio can be leveraged as launchpad. The properties in strip retail and warehouse provides immediate scale and operational learning ground to pilot the activity internally.

Table of Content:

The study will evaluate the macroeconomic environment and conduct a micro-level analysis of the property management market within the real estate sector in Saudi Arabia with a focus on Retail and Industrial (warehousing). It will then assess the potential opportunities and provide the client with clear recommendations on whether to pursue this business venture or not. The Study will be restricted to Riyadh, Jeddah and Damman / Al Khobar.

Executive Summary

  • Market overview
  • Competition overview
  • Recommendations

Macro-economic Overview:

  • GDP and growth outlook
  • Breakdown by Sector
  • Inflation and Interest rates
  • Population and demographics
    • Purchasing Power
    • Regional distribution

Market Analysis

  • Value chain
  • Market size (2020-2024, outlook 2030)
    • By Service type:
      • Property Management (including administration, financial management, marketing & leasing, community management, tenant screening etc.)
      • FM Supervision
      • MEP Management
      • Soft Service Management
    • By customer type:
      • Individual Landlords
      • Real Estate Investment Companies/REITs
      • Housing Associations
      • Others
    • By end-user sector (focus on retail and industrial sectors):
      • Retail
      • Industrial
      • Others

Market Dynamics

  • Major market drivers such as increasing construction activity, rising population, tourism growth, growing manufacturing and industrial activities, etc.
  • Key challenges such as cost optimization efforts, scalability issues, lack of skilled talent
  • Latest industry trends such as demand for Protech solutions

Regulatory Overview

  • Licensing requirement
  • Trade regulation related to PM products and services
  • Other regulations impacting PM sector

Customer Analysis

  • Key customers across retail and industrial segments
  • Key purchasing criteria and winning dimensions
  • Decision-making process

PESTEL Analysis

  • Competitive Landscape
    • Market share
    • Best practices followed by players that are catering to the retail and industrial segments
    • Competitor profile (Top 5 companies / key players)
    • Company overview
    • Key services
    • Employee size
    • Operating sector and major clients
    • Main marketing and sales strategies
    • SWOT analysis

Conclusion & Recommendation

  • Market attractiveness
  • Key risks and considerations
  • Go / no go

Key Outputs

  • Understanding of the Client’s objectives and goals
  • Macro / Market Analysis
  • Market dynamics
  • Key Customers
  • Competitive landscape
  • Recommendations