Saudi Arabia Real Estate Market, By Region, Competition, Forecast & Opportunities, 2020-2030F

The Saudi Arabia Real Estate Market was valued at USD 68.52 Billion in 2024, and is expected to reach USD 111.77 Billion by 2030, rising at a CAGR of 8.86%. The sector encompasses residential, commercial, industrial, and agricultural properties, each serving distinct purposes - from living spaces like apartments and homes to business infrastructure such as offices and warehouses. Real estate transactions, including buying, selling, and leasing, are influenced by economic trends, government policies, and interest rates. As the country diversifies its economy, the real estate sector presents promising opportunities for long-term gains, attracting both local and international investors.

Key Market Drivers

Economic Diversification and Vision 2030
Saudi Arabia’s Vision 2030 initiative is a central force driving the evolution of the real estate sector. The plan aims to reduce the country’s dependence on oil by promoting non-oil industries, including real estate, tourism, and infrastructure. This has led to substantial investments in transformative projects like NEOM, the Red Sea Project, and Qiddiya.

These mega-developments are creating new demand for both residential and commercial properties by catering to an increasing population and the growing presence of foreign businesses. With the population expected to surpass 40 million by 2030, demand is further amplified by workforce reforms and infrastructure enhancements in cities such as Riyadh and Jeddah. The modernization of sectors such as transport, healthcare, and education supports the establishment of new economic zones, fostering additional real estate opportunities across the kingdom.

Key Market Challenges

Overdependence on Oil Revenue and Market Volatility

A major challenge for Saudi Arabia’s real estate sector is its significant reliance on oil revenue, making it susceptible to global oil price fluctuations. Though efforts to diversify are underway, the market’s stability is still tied to oil performance. Economic growth and investment typically surge when oil prices are high, boosting property demand. Conversely, a drop in prices can lead to reduced government spending and investment, slowing the real estate market - as seen after the 2014 oil crash. Additionally, the global shift toward renewable energy further pressures oil-dependent economies. While measures such as encouraging foreign investment and promoting non-oil sectors are in place, maintaining real estate market resilience amid oil price volatility remains a considerable concern.

Key Market Trends

Growth of Affordable Housing Projects

A growing trend in Saudi Arabia’s real estate sector is the heightened emphasis on affordable housing. Driven by rapid urban population growth and a youthful demographic, the government has prioritized initiatives like the Sakani housing program under Vision 2030. These efforts focus on enabling Saudi nationals, particularly first-time buyers, to own homes. Developers are shifting from luxury projects to cost-efficient housing solutions that incorporate modular and prefabricated construction techniques. This trend is especially prevalent in urban hubs like Riyadh, Jeddah, and Dammam, where housing demand is highest. The Ministry of Municipal and Rural Affairs and Housing reports over 11,000 development projects across more than 300 municipalities, emphasizing urban expansion and enhanced livability.

Key Market Players

• CBRE Group
• Jones Lang Lasalle Incorporated
• Simon Media Properties, LLC
• DLF Limited
• Prologis, Inc.
• Cushman & Wakefield Debenham Tie Leung Limited
• Boston Hub Real Estate Inc.
• Colliers International Property Consultants, Inc.

Report Scope:

In this report, the Saudi Arabia Real Estate Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Saudi Arabia Real Estate Market, By Type:

• Real Estate Rental
• Real Estate Agency
• Brokerage

Saudi Arabia Real Estate Market, By Mode:

• Online
• Offline

Saudi Arabia Real Estate Market, By Property Type:

• Fully Furnished
• Semi Furnished
• Unfurnished

Saudi Arabia Real Estate Market, By Region:

• Riyadh
• Makkah
• Madinah
• Eastern Province
• Dammam
• Rest of Saudi Arabia

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Saudi Arabia Real Estate Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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