Saudi Arabia Real Estate Market by Property Type (Commercial Real Estate, Residential Real Estate), and Geography - Industry Analysis, Opportunities and Forecast up to 2030

Saudi Arabia Real Estate Market Size

The Saudi Arabia real estate market size was valued at $69.89 billion in 2024 and is projected to reach $112.77 billion by 2030, growing at a CAGR of 8.3% during the forecast period.

Saudi Arabia Real Estate Market Overview

Saudi Arabia real estate refers to the property market within the Kingdom of Saudi Arabia, encompassing residential, commercial, and industrial properties. With a rapidly growing population and expanding economy, the real estate sector in Saudi Arabia has experienced significant development and investment in recent years. The market offers a wide range of real estate opportunities, including luxury apartments, villas, office buildings, retail spaces, and industrial complexes, catering to diverse needs and preferences. Major cities like Riyadh, Jeddah, and Dammam are focal points for real estate activity, with ongoing construction projects and urban development initiatives shaping the skyline and infrastructure of these urban centers. The Saudi government plays a key role in driving the real estate sector through initiatives such as Vision 2030, aimed at diversifying the economy and promoting private sector participation in real estate development. Foreign investment in the Saudi real estate market has also increased, driven by favorable regulations and incentives aimed at attracting international investors. Overall, Saudi Arabia's real estate sector presents opportunities for growth, investment, and innovation amidst the country's ambitious economic transformation efforts.

Saudi Arabia Real Estate Market Dynamics

·     The Saudi Arabia real estate market is expected to witness significant growth in the future due to the growing demand for commercial and housing properties, rising inclination for luxurious properties offering a high standard of living, and the increasing trend of investment in real estate.

·   Additionally, the stable economic environment, rapid population growth, and rapid urbanization across the country are the prominent factors driving the growth of the market.

·      However, the mortgage policy and residential space deficit are restraining the market growth.

·      Moreover, government policies and initiatives in the development of affordable housing projects, the rise of mixed-use developments in a single project, and growing technological advancements in the construction industry are creating opportunities for market growth.

Impact of COVID-19 on the Saudi Arabia Real Estate Market

The COVID-19 pandemic has significantly impacted the real estate market in Saudi Arabia. With the economic slowdown stemming from reduced oil prices and decreased government spending, uncertainty has permeated the sector. Demand fluctuations have been evident, with some individuals and businesses postponing or canceling transactions, particularly in the commercial and luxury residential segments. Remote work arrangements have reshaped office space requirements, leading to a decrease in demand for commercial real estate in some areas while driving interest in flexible workspaces. However, the residential market has shown resilience in affordable housing segments, supported by government initiatives aimed at promoting homeownership among citizens. Luxury residential properties have experienced a slowdown as high-net-worth individuals adjust their spending priorities. Despite challenges, the Saudi government has implemented stimulus packages and measures to facilitate transactions, supporting the sector. Yet, tourism and hospitality sectors, closely linked to real estate, have suffered from travel restrictions and reduced activity. Nevertheless, the pandemic has accelerated digital adoption, prompting innovation and adaptation in marketing, viewings, and transactions, as stakeholders navigate the evolving landscape to foster recovery and growth.

The Residential Real Estate Sector is projected to show a Prominent Growth Rate in the Saudi Arabia Real Estate Market

The residential real estate sector is projected to show a prominent growth rate in the Saudi Arabia real estate market during the forecast period due to the government's continued initiatives to promote homeownership among Saudi citizens with programs and incentives, making property ownership more accessible and attractive. Additionally, population growth, driven by factors such as high birth rates and urbanization, has fueled the need for housing, particularly in major cities like Riyadh, Jeddah, and Dammam. Moreover, the country's young demographic, with a sizable proportion of the population under 30, is contributing to increased housing demand as young adults seek accommodation for their families or independent living. Furthermore, the stability and growth potential of the Saudi economy, supported by diversification efforts and large-scale infrastructure projects like NEOM and the Red Sea Project, have bolstered investor confidence in the real estate market. Finally, cultural norms and social aspirations, including the desire for homeownership and the importance of family life, play a significant role in driving demand for residential properties, further underpinning the attractiveness of the Saudi Arabia real estate market in the residential segment.

·    According to Lexology, a global legal intelligence platform, numerous mega-projects such as NEOM, the Red Sea Project, and Qiddiya have been launched as part of Vision 2030. These initiatives are geared towards reshaping Saudi Arabia into a prominent global tourism and investment hub, drawing in investors while also elevating the standard of living for the residents.

Riyadh Accounts for the Largest Share of the Saudi Arabia Real Estate Market Revenue

Riyadh region accounts for the largest share of the Saudi Arabia real estate market revenue due to the city's rapid population growth, driven by natural expansion and rural-to-urban migration. Riyadh serves as the capital and economic hub of the country, attracting a significant influx of domestic and international businesses seeking opportunities in various sectors such as finance, technology, and commerce. This economic activity generates a continuous demand for commercial spaces, office buildings, and residential properties to accommodate the growing workforce and their families. Additionally, the government's initiatives to diversify the economy and promote investment in sectors like entertainment, tourism, and healthcare have further stimulated demand for real estate in Riyadh, as these developments require infrastructure and facilities to support their growth. Furthermore, Riyadh's strategic location and connectivity through major transportation networks, including highways, railways, and an expanding metro system, enhance its attractiveness for both businesses and residents. Overall, the combination of economic opportunities, government initiatives, strategic location, and population growth makes Riyadh a highly sought-after real estate market in Saudi Arabia.

·    According to an article published by CBRE Saudi Arabia, the office rents in Riyadh maintained strong performance levels, with Grade A rents growing by 12.2% year-on-year to Q2 2023, reaching SAR 1,839 per square meter.

Key Target Audience:

·        Developers and Construction Companies

·        Investors and Financial Institutions

·        Government and Regulatory Bodies

·        Real Estate Agents and Brokers

·        Homebuyers and Renters

·        Commercial Tenants and Businesses

·        Urban Planners and Infrastructure Developers

·        Property Management Companies

·        Legal and Consulting Firms

·        International Investors and Expatriates

List of the Key Players Profiled in the Report Includes:

·        Emaar

·        SEDCO Development (SEDCO Holding)

·        Al Saedan Real Estate 

·        Kingdom Holdings Company

·        Ewaan 

·        Jabal Omar Development Company

·        Jenan Real Estate Company

·        Abdul Latif Jameel

·        Dar Ar Alkan

·        Century 21 Saudi Arabia

Recent Developments:

·    In Feb 2024, Emaar Properties, a leading real estate development company, finalized the detailed design for "Dubai Square," poised to become the second-largest shopping and entertainment mall in Dubai Creek Harbour. This project marks a significant milestone in positioning Dubai as a premier global destination for shopping and leisure. "Dubai Square" will showcase cutting-edge technologies and inventive concepts in retail, dining, and entertainment, providing an extraordinary experience that transcends conventional shopping environments.

Market Segmentation:

The research report includes in-depth coverage of the industry analysis with size, share, and forecast for the below segments:

Market by, Property Type:

·        Commercial Real Estate

·        Residential Real Estate

Market by, Region:

The Saudi Arabia real estate market report also analyzes the regions of the market:

·        Northern and Central Region (Riyadh, Qassim, Hail, Jouf), Market Estimates, Forecast & Opportunity Analysis

·        Eastern Region (Dammam, Al Khobar, Al Jubail), Market Estimates, Forecast & Opportunity Analysis

·        Western Region (Makkah, Medina, Tabuk, Baha), Market Estimates, Forecast & Opportunity Analysis

·        Southern Region (Asir, Jizan, Najran), Market Estimates, Forecast & Opportunity Analysis

What Can be Explored with this Research Report:

·        Understand the market analysis, trends, and forecasts up to 2030

·        Understand analysis of the market structure by identifying various segments and sub-segments of the market

·        Understand revenue forecast and strategic analysis concerning industry trends and contribution to the overall market

·        Identification of major market trends, factors driving, restraining, threatening, and providing opportunities for market growth

·        Analyzing opportunities by identification of high-growth segments/revenue pockets in the market

·        Understand major player profiles in the market and analyze their business strategies

·        Understand competitive developments such as joint ventures, alliances, mergers and acquisitions, and new product launches in the market

Table Of Content

1 Market Introduction 
 1.1 Market Definition 
 1.2 Research Scope and Segmentation 
 1.3 Stakeholders 
 1.4 List of Abbreviations 
 
2 Executive Summary 
 
3 Research Methodology 
 3.1 Identification of Data 
 3.2 Evaluation of Market Dynamics 
 3.3 Collaboration of Data 
 3.4 Verification and Analysis 
 3.5 Research Approach 
 3.6 Data Sources and Assumptions 
 
4 Market Dynamics 
 4.1 Market Drivers 
 4.2 Market Restraints 
 4.3 Market Opportunities 
 4.4 Market Challenges 
 4.5 Impact of COVID-19 on Saudi Arabia Real Estate Market 
 
5 Porter's Five Force Analysis 
 5.1 Bargaining Power of Suppliers 
 5.2 Bargaining Power of Buyers 
 5.3 Threat of New Entrants 
 5.4 Threat of Substitutes 
 5.5 Competitive Rivalry in the Market 
 
6 Saudi Arabia Real Estate Market by, Property Type 
 6.1 Overview 
 6.2 Commercial Real Estate          
       6.2.1 Hospitality 
       6.2.2 Offices 
       6.2.3 Retail 
       6.2.4 Other Commercial Real Estates 
 6.3 Residential Real Estate           
       6.3.1 Villas 
       6.3.2 Apartments 
       6.3.3 Other Residential Real Estates 
 
7 Saudi Arabia Real Estate Market by, Region 
 7.1 Overview 
 7.2 Northern and Central Region 
       7.2.1 Riyadh
       7.2.2 Qassim
       7.2.3 Hail
       7.2.4 Jouf
 7.3 Eastern Region 
       7.3.1 Dammam
       7.3.2 Al Khobar
       7.3.3 Al Jubail
 7.4 Western Region 
       7.4.1 Makkah
       7.4.2 Medina
       7.4.3 Tabuk
       7.4.4 Baha
 7.5 Southern Region 
       7.5.1 Asir
       7.5.2 Jizan
       7.5.3 Najran
 
8 Key Developments 
 
9 Company Profiling 
 9.1 Emaar 
       9.1.1 Business Overview
       9.1.2 Product/Service Offering
       9.1.3 Financial Overview
       9.1.4 SWOT Analysis
       9.1.5 Key Activities
 9.2 SEDCO Development (SEDCO Holding) 
 9.3 Al Saedan Real Estate   
 9.4 Kingdom Holdings Company 
 9.5 Ewaan   
 9.6 Jabal Omar Development Company 
 9.7 Jenan Real Estate Company 
 9.8 Abdul Latif Jameel 
 9.9 Dar Ar Alkan 
 9.10 Century 21 Saudi Arabia