Market Trends of Saudi Arabia Roofing Industry
The Demand From the Residential Segment is Increasing
The demand for roofing in the residential segment in Saudi Arabia has been on the rise in recent years. As the country experiences rapid population growth and urbanization, there is a growing need for residential buildings, which drives the demand for roofing materials and services.
One of the primary factors contributing to the demand for roofing in the residential segment is the government's focus on affordable housing initiatives.
The Saudi government has been actively promoting affordable housing projects to cater to the housing needs of its citizens. These initiatives have led to an increase in the contribution of residential buildings, creating a higher demand for roofing materials.
Additionally, the extreme climate conditions in Saudi Arabia, with scorching summers and occasional sandstorms, require durable and weather-resistant roofing solutions. This has further fueled the demand for high-quality roofing materials that can withstand harsh weather conditions and provide protection to residential buildings.
The preference for aesthetically pleasing and energy-efficient solutions has also influenced the demand in the residential segment. Homeowners are increasingly seeking roofing materials that enhance the visual appeal of their homes while offering energy-saving benefits. This has led to a rise in the adoption of innovative roofing technologies and materials, such as solar panels and cool roofs, which help reduce energy consumption and lower utility costs.
The construction boom in Saudi Arabia, driven by various infrastructure development projects and the Vision 2030 initiative, has also contributed to the demand for roofing in the residential segment.
In the 12 months ending June 30, 2023, the average price of an apartment in Riyadh increased by 22.9%, while the average price in Dammam increased by 2.4%. The average price in Khobar decreased by 4.3%, and the average price in Jeddah decreased by 3.5%. The average price of a villa in each of the four major cities increased over the year-to-date (Q2 2023), with a rise of 3.9% in Riyadh, 5.0% in Dammam, and 20% in Jeddah. In Khobar, the average price increased by 2.3%.
The Market is Driven by Increasing Urbanization
Urbanization has been a major driving force behind the growth of the roofing market in Saudi Arabia. As more people move from rural areas to cities for better opportunities, the demand for housing and infrastructure has skyrocketed. This, in turn, has created a significant need for roofing materials and services.
Urbanization in Saudi Arabia has been fueled by several factors. Economic development and industrialization have led to the growth of cities and the establishment of new economic hubs. This has attracted a large influx of people from rural areas seeking employment and a better standard of living. As the urban population continues to rise, the demand for housing is expected to increase exponentially.
The government's focus on urban development and the Vision 2030 initiative have further accelerated urbanization in Saudi Arabia. The Vision 2030 plan aims to diversify the economy and reduce the dependence on oil by promoting sectors such as tourism, entertainment, and technology. This includes the establishment of new cities and mega-projects, including NEOM and Qiddiya, which require extensive roofing solutions.
In 2022, Saudi Arabia's urban population accounted for approximately 84.73% of the country's total population.
