Saudi Arabia Real Estate Market Overview
Market Size in 2024: USD 72.11 Billion
Market Size in 2033: USD 132.65 Billion
Market Growth Rate 2025-2033: 7.0%
According to IMARC Group's latest research publication, "Saudi Arabia Real Estate Market Size, Share, Trends and Forecast by Property Type and Region, 2025-2033”, The Saudi Arabia real estate market size was valued at USD 72.11 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 132.65 Billion by 2033, exhibiting a CAGR of 7.0% during 2025-2033.
Growth Factors in the Saudi Arabia Real Estate Market
- Vision 2030 and Mega-Projects
Saudi Arabia's Vision 2030, effectively aimed at economic diversification, is a main driver of the real estate market. The mega-projects of NEOM, Qiddiya and the Red Sea Project are creating demand for residential, commercial and hospitality properties. As an example, the development of NEOM as the overarching futuristic city, has attracted global investors who are now following through with constructing high-end residential and commercial spaces. Not only are these projects ringing in urban real estate development, but they are also improving existing infrastructure and will make areas like Tabuk and Riyadh much more attractive to real estate investors in the future. This is being driven by a government initiative and continues to changes the market for urban development and multinational companies operating in Saudi arabia.
- Urbanization and Population Growth
Increasing urbanization, paired with an expanding population, inclusive of a large expatriate population, is driving demand for real estate. Cities such as Riyadh, Jeddah, and Dammam are growing to house an inflow of residents and driving the demand for housing and commercial spaces. For instance, Dar Al Arkan’s Al Qasr project in Riyadh, which offers residential units aimed at young professionals and families, will address some of the urban housing needs. Coupled with the government initiatives to stimulate home ownership, via programs like Sakani by providing affordable housing, the market will be buoyed by continuing demand for housing, as well the encouragement of developers to undertake large scale residential projects.
- Tourism and Hospitality Expansion
With the rapid growth of the tourism sector, a main pillar of Vision 2030, there is an active development of the real estate market, especially in hospitality and retail segments. The influx of pilgrims (for Hajj and Umrah) and an expanding base of non-religious tourists has created an increased demand for hotels/accommodations and serviced apartments. For example, Jabal Omar Development Company's projects in Mecca focus on pilgrims by providing quality luxury lodging in close proximity to the Grand Mosque. The Red Sea Project is also an example of a tourism initiative that is creating high-end resort developments and involving international hotel brands (such as Marriott and Hilton). The overall growth of tourism-oriented real estate is transforming the overall real estate market, especially in coastal areas and holy cities.
Key Trends in the Saudi Arabia Real Estate Market
- Rise of Smart and Sustainable Developments
Sustainability and smart technology are shaping the real estate market as developers prefer eco-friendly and tech-based projects. Green building options, such as energy-efficient designs and sustainable materials, are becoming increasingly common to align with Saudi Arabia’s environmental vision for 2030. King Abdullah Economic City (KAEC) is an example of a development showcasing smart infrastructure and sustainable designs, and it is especially attractive to buyers interested in environmentally-friendly design. Smart homes with IoT enabled technology, such as automated lighting and security systems, are also very popular in luxurious developments in Riyadh. This trend in real estate development demonstrates a shift to modern, sustainable living, which helps with the marketing of real estate projects.
- Growth of Mixed-Use Developments
Mixed-use developments that are bringing residential, commercial arena, and leisure elements together have become a key trend in vision 2030. They appeal to urban lifestyles by providing access to convenience and street-friendly amenities. For example, Riyadh Season, the newly established cultural and divisional hub for Fonts have helped increased demand for mixed-use developments from retail to office, and residential. Companies like Al Rajhi Real Estate have been investing in those types of projects, and in those types of community to attract younger professionals and families to live in walkable districts with multiple amenities. Not only do these types of marvel at larger picture of the government, in realizing its Vision 2030 urban planning details and[result models not only impact real estate demand, but create self-sustaining neighborhoods that ultimately improve the livability of certain areas, while increasing upon julian and other analysis.
- Increased Foreign Investment
The loosening of foreign property ownership rules as part of Vision 2030 is enticing foreign investors to the Saudi Arabian real estate market. Policies to allow non-Saudi nationals to own a property in designated area has resulted in an air of confidence for the international developers and investors. For example, Dubai-based Emaar Properties has expanded their regional portfolio with projects that include Jeddah Gate, a luxury residential and commercial property. While this trend is being seen in several of the high-growth cities, it is prominent in Riyadh and Jeddah where foreign investment is propelling the construction of luxury projects shaped by competition offered by premium property globally, while capturing interest and innovation in the regional property market.
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Saudi Arabia Real Estate Industry Segmentation:
The report has segmented the market into the following categories:
Analysis by Property Type:
- Residential Real Estate
- Apartments
- Villas
- Others
- Commercial Real Estate
- Offices
- Retail
- Hospitality
- Others
Regional Insights:
- Northern and Central Region
- Western Region
- Eastern Region
- Southern Region
Competitive Landscape:
- Abdul Latif Jameel
- Dar Ar Alkan
- Emaar
- Jabal Omar Development Company
- Jenan Real Estate Company
- Kingdom Holdings Company
- SEDCO Development (SEDCO Holding)
The competitive landscape of the industry has also been examined along with the profiles of the key players.
Future Outlook
The current trajectory of expansion in the Saudi Arabia real estate market is sustainable, thanks to the combination of Vision 2030 initiatives and economic reforms. High-profile mega-developments like NEOM and Diriyah Gate will continue to attract opportunities and interest from global real estate investors to Saudi Arabia creating demand for all asset classes in this burgeoning real estate market. The evolution of smart cities and sustainable developments provide alluring urban developments and reconstitution of historic and traditional landscapes. The launch of Al Widyan in the heart of Riyadh paves the way for new methodologies in a new standard of living in city environments. There are undoubtedly challenges, many of which stem from the restrictive regulatory environment coupled with an apparent shortage of qualified labor for the large-scale developments requiring skilled laborers. Continued government drive initiatives surrounding significant projects and the uptake of foreign direct investments will maintain or exponentially increase momentum. Emerging momentum positions the market as a competitive choice for stakeholders wanting to invest by providing numerous economic prospects with multiple opportunities for local and foreign investors alike.
Research Methodology:
The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.
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