Local developer Naif Saleh Al-Rajhi Investment has awarded the main construction contract to First Saudi Contracting for its residential tower in Riyadh.

The $160m Ramla Tower will be located on King Fahd Road in Riyadh will have 40 floors reaching a height of 150 metres.

The contract includes building a gym, car park, utilities and all other associated facilities and will last 30 months with excavation works already underway.

Riyadh’s real estate market is likely to remain “robust” as approximately 3,500 units are expected to enter the market in the next three-to-four years, according to a recent report by the US’ KPMG.

The report also highlighted that the recently announced white land tax on undeveloped residential and commercial urban land would free up developable land and boost tax collection. In addition, it is also anticipated that property prices may witness some correction in line with their fair values.