Feasibility Study: Development of Small Villas for Tourist Rental
Feasibility Study: Development of Small Villas for Tourist Rental
The project aims to develop a fully furnished small villa complex for short-term tourist rentals in a promising tourist destination in Saudi Arabia such as Al-Baha, Asir, Taif, or the western coast (e.g., Umluj or Yanbu). The villas will feature modern designs and range from 70 to 120 m² in size, offering comfortable and private accommodation options for families and privacy-seeking tourists at affordable prices.
Study Content
Target Products and Services
Target Products and Services
Fully furnished villas available for daily or weekly rental
In-villa hospitality services (cleaning, breakfast, maintenance)
Organized tourist excursions with local guides
Self check-in and smart online booking/payment services
Private entertainment areas: outdoor seating, barbecue, play zones
Optional premium services like private chefs and small event setups
Market and Demand Analysis
Market and Demand Analysis
Domestic tourism in Saudi Arabia is growing rapidly under Vision 2030, particularly in mountain regions and cooler climates. Tourist demand for short-term rentals via platforms like Airbnb and Booking.com is increasing, reflecting a shift toward private, flexible stays. There is still a market gap for professionally managed small villa compounds in natural, scenic areas.
Investment Advantages
Investment Advantages
Scalable model across various tourist cities and regions
Lower operational costs relative to the projected returns
Strong demand from seasonal and holiday travelers
Digital and remote management capabilities reduce staffing needs
Perfect alignment with national tourism and economic diversification plans
Financial Indicators
Financial Indicators
Modern architectural design focused on privacy
Fully integrated living experience with low overhead
Flexible booking and rental system
Smart digital management and booking platform
Easily marketable through global rental platforms
High customer satisfaction and potential for repeat bookings
Financial Indicators
Financial Indicators
Estimated Capital Investment:
The estimated capital ranges from SAR 6 million to SAR 10 million, covering construction, furnishing, landscaping, smart systems, and facility setup.
Expected ROI:
A projected annual return between 13% and 18%, with potential for higher returns during peak seasons.
Expected Payback Period:
The payback period is estimated at 4 to 5 years, which can be shortened through strong marketing and added-value services.
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