KSA: Saudi Arabia is set to see a surge in the number of elderly individuals by 2035 resulting in strong demand in the kingdom’s senior living market
A new report by Knight Frank called Golden Years & Real Estate – The Untapped Senior Living Market, 2023, says the number of elderly is projected to rise from 1.1 million to 3.58 million by 2035.
The report says that, with senior individuals “transitioning into their retirement years, there is a discernible shift in housing preferences, accompanied by lifestyle modifications. This emerging trend, known as retirement living, seeks to provide a comfortable and seamless transition for individuals aged 65 and above, moving from regular housing to facilities offering essential support”.
A recent survey conducted by Knight Frank, involving 1,014 Saudi national households, revealed that approximately 43 per cent of respondents currently reside outside their hometowns due to job-related migration to cities such as Riyadh and Jeddah. This would classify the parents who are left behind in their home cities as “empty nesters,” highlighting the growing demand for physical, mental and social support as these individuals age.
Shehzad Jamal, partner – strategy & consulting, MEA at Knight Frank, said: “We are witnessing a global shift towards retirement living unfolding, offering a potential solution for Saudi Arabia’s ageing population as young professionals are being attracted to the key cities and new cities for improved economic prospects. However, education and awareness is required to highlight the benefits and convenience offered by such concepts for senior citizens.”
The publication underscores the importance of two primary retirement living offerings: active Living and assisted living. Active living encourages active engagement and includes specialised nursing centres with varying levels of care and services. Currently, the prevailing trend in Saudi Arabia leans predominantly toward long-term care facilities.
Dr. Gireesh Kumar, associate partner – strategy & consulting, healthcare, MEA, said: “The population of HNWIs and UHNWIs in Saudi Arabia is anticipated to grow up to 185,000 HNWIs and 1,000 UHNWIs by 2027 according to the Wealth Report Series by Knight Frank, making this segment a significant contributor to the demand for senior living options. In addition, the number of households on Saudi Arabia with an annual income of US$200,000 is also expected to increase from 141,000 to 175,000 between 2022 and 2035 respectively, which further bolsters this demand.”
Knight Frank says the rising demand for retirement services and housing in Saudi Arabia has attracted the interest of significant investors, government authorities, and senior stakeholders.
