Saudi Arabia Manufactured Homes Market Size

Saudi Arabia Manufactured Homes Market Analysis

The size of Saudi Arabia's Manufactured Homes Market is USD 2,873 million in the current year and is anticipated to register a CAGR of over 3% during the forecast period

• Supply chain issues related to the Covid-19 pandemic have made it difficult to buy a home at affordable prices. Thus, more people may start turning to manufactured homes to achieve the dream of homeownership. As housing costs increase due to lumber price spikes and concrete shortages, many homeowners may favor manufactured homes, leading to market growth.
• Saudi Arabia is amid a construction boom that aims to transform the wider economy. The country has been investing substantially in large-scale infrastructure projects, led by Vision 2030. However, the residential construction segment also underwent significant growth expansion following several years of muted growth. One of the key growth drivers for the residential construction industry in Saudi Arabia has been the recent uptick in activity by the government. The Saudi Arabia government launched a number of financing initiatives and regulatory reforms to provide affordable housing to its citizens. In May 2021, the government announced the plan to develop one million residential units in five years. This along with evolving housing preferences, as the younger population moves away from extended families to a more nuclear family, is expected to create an increase in the demand for smaller housing units in Saudi Arabia.
• This demand for housing in the Kingdom will serve as a tailwind to Saudi Arabia's manufactured homes market. Saudi Arabia already leads the modular construction market in the Middle East region. The increased housing demand, growth in construction, affordability, and environmental efficiency of manufactured homes will be major growth drivers for the market. Unlike single-family homes and apartment complexes, manufactured homes can be built in a fraction of the time of fixed construction, allowing them to keep better pace with demand. While low home inventory is driven in part by overwhelming demand, it is also affected by a shortage of skilled workers and supply chain interruptions that keep building projects from being completed. Across the globe, the construction industry faces these issues. These can be circumvented through the faster, more efficient processes associated with manufactured homes, thus making the market's growth more certain. Still, the industry players will have to take some steps to reduce the stigma about manufactured housing in society.