As the Kingdom gears up for a significant demographic shift, Knight Frank's latest insights reveal a booming market for retirement living. With the elderly population expected to soar from 1.11 million in 2022 to a staggering 3.58 million by 2035, the demand for specialised senior housing is at an all-time high.
What is driving this surge?
Empty nesters. With approximately 43% of Saudi nationals living away from their hometowns due to job-related migration, there's a growing need for physical, mental, and social support as parents age in their home cities. This trend underscores the importance of retirement living, offering seamless transitions for individuals aged 65 and above.
The demand for retirement services and housing is further fueled by increasing life expectancy, a growing ageing population, and shifts in social dynamics. By 2050, Saudi Arabia is expected to have five seniors for every 100 persons in the workforce. Additionally, the rise in Ultra High Net Worth Individuals (UHNWIs) and High Net Worth Individuals (HNWIs) is driving investment in senior living communities.
Investors, government authorities, and stakeholders are taking notice. Collaborative ventures with established healthcare operators provide families with peace of mind, knowing their elderly loved ones have access to essential services without the clinical atmosphere of traditional medical facilities.