Saudi Arabia commercial real estate market size reached USD 67.5 Billion in 2024. Looking forward, the market is expected to reach USD 90.9 Billion by 2033, exhibiting a growth rate (CAGR) of 3.35% during 2025-2033. The growing number of hotels, resorts, and entertainment hubs, owing to the expanding travel and tourism industry, is primarily driving the market growth.
Report Attribute
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Key Statistics
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Base Year
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2024 |
Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 67.5 Billion |
Market Forecast in 2033 | USD 90.9 Billion |
Market Growth Rate (2025-2033) | 3.35% |
Commercial real estate (CRE) encompasses properties used primarily for business purposes, such as office buildings, warehouses, retail centers, and mixed-use developments. Unlike residential real estate, which is geared towards individual living spaces, commercial properties are focused on generating revenue, whether through rental income, business operations, or capital appreciation. With its intrinsic link to the broader economy, commercial real estate often serves as a barometer for business confidence, growth prospects, and emerging societal trends. As cities expand and business landscapes evolve, CRE remains a pivotal sector, driving investment, shaping skylines, and facilitating the growth of industries and communities alike.
Economical Diversification Under Vision 2030 is Spurring Real Estate Investments
Saudi Arabia is actively diversifying its economy under Vision 2030 by lowering its reliance on oil revenues and investing significantly in non-oil activities. Such diversification is constantly driving demand for commercial real estate properties like shopping malls, office buildings, hotels, and logistics centers. It is investing heavily in infrastructure construction, special economic zones, and business-friendly regulatory systems, which is drawing foreign direct investment (FDIs) and multinational companies to set up regional headquarters in such cities as Riyadh, Jeddah, and NEOM. It is also encouraging public-private partnership (PPPs) in mega infrastructure initiatives, which is boosting the supply and upgradation of commercial real estate. With the increasing diversification of the economic environment, real estate investors and developers are continually taking advantage of the rise in demand for high-quality, well-positioned commercial properties, thus perpetuating continued market growth and appreciation in asset value in the long term. The non-oil sector of the Kingdom is projected to increase by 5.8% in 2025, rising from 4.5% in 2024, validating the effectiveness of the economic diversification initiatives advocated by Vision 2030. Saudi Arabia is significantly investing in infrastructure, tourism, and urban development, essential factors that are increasing the attractiveness of its real estate market.
Heightened Investments in Urban Developments
Metros, roads, and utilities are being continuously invested in by the government in cities like Riyadh, Jeddah, and Dammam to cater to urban expansion, which is enhancing connectivity and land values in prime locations. The 2nd Roads, Bridges & Tunnels KSA 2025 Conference scheduled from 30 April to 1 May 2025 in Jeddah, acts as an essential forum for industry leaders, government representatives, and innovators to work together and exchange ideas. Cities such as Riyadh, Jeddah, and Dammam are witnessing population growth and domestic migration, which is boosting demand for shopping malls, entertainment, healthcare, and co-working office space. As more individuals migrate towards cities for jobs, learning, and improved standards of living, the need for commercial centers is also increasing. Real estate developers are reacting by introducing mixed-use complexes that integrate retail, office, hospitality, and entertainment functions. This trend towards integrated commercial spaces is addressing the needs of city consumers and is strengthening Saudi cities as business and lifestyle hubs.
Expansion of E-Commerce and Logistics
The expansion of e-commerce platforms is constantly transforming the commercial real estate landscape. More people are depending on online channels for shopping, thus generating robust demand for cold storage facilities, last-mile delivery hubs, and large-sized fulfillment centers. The government is actively upgrading logistics infrastructure by constructing state-of-the-art industrial parks and bonded logistics areas, particularly in proximity to airports and ports. Large players are building out their warehousing capacities in major locations, further pushing up the development of high-spec logistics properties. The trend toward online retailing is also affecting developers to incorporate e-commerce-enabled logistics aspects within commercial developments. Consequently, the warehousing and logistics sector is emerging as one of the most dynamically growing segments of the commercial property market. The e-commerce market is projected to reach USD 708.7 Billion by 2033 in Saudi Arabia, as per the predictions of the IAMRC Group.
Tourism and Hospitality Development
Saudi Arabia is investing heavily in tourism as a diversification initiative, which is strongly driving the hospitality and commercial real estate sectors. The Kingdom is developing mega-projects like NEOM, The Red Sea Project, and Diriyah Gate with the aim of welcoming millions of visitors to the country each year. These growths are necessitating massive commercial real estate infrastructure such as hotels, resorts, shopping centers, and restaurants. Religious tourism to Mecca and Medina also remains in the forefront, with the government continuing to upgrade facilities to cater to growing numbers of pilgrims. This growth in tourism is also encouraging local and international hospitality groups and retail companies to increase their foothold in the nation. In addition, programs such as the issuance of e-visas and hosting international entertainment events are attracting foreign visitors, thus driving the demand for commercial spaces.
Government Support and Regulatory Reforms
The government of Saudi is introducing structural reforms and business-friendly policies that are consistently enhancing transparency and investor sentiment in the commercial property sector. Regulatory reforms such as the Real Estate General Authority (REGA) and the introduction of a single digital title deed system are raising market formalization and lowering transactional risk. The reforms are facilitating domestic as well as international investors to participate in the market, particularly in prime commercial segments. In addition, the launch of Real Estate Investment Trusts (REITs) is facilitating greater accessibility to real estate investment and providing liquidity to institutional and retail investors. Land-use approvals and building permits are also being streamlined by the government, which is speeding up project implementation and reducing development bottlenecks. As these investor-friendly reforms are being persistently implemented, the market is becoming increasingly mature, transparent, and competitive.
Emergence of Mixed-Use Development and Smart Cities
Saudi Arabia is aggressively adopting smart city ideas and mixed-use development, which are transforming the appearance and utility of commercial real estate complexes. Massive projects such as King Abdullah Financial District (KAFD), Qiddiya, and NEOM are incorporating cutting-edge technologies, green features, and digital infrastructure in their commercial developments. Developers are now placing greater emphasis on designing walkable, multi-functional environments that have towers for offices, retail areas, recreation areas, and parks. These integrated developments are providing businesses and consumers with more flexible and interactive experiences, which is enhancing the commercial popularity of these urban developments. Use of IoT, smart building management, and energy-efficient design is further improving tenant satisfaction and operational efficiency.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on type.
Type Insights:
The report has provided a detailed breakup and analysis of the market based on the type. This includes offices, retail, industrial, logistics, multi-family, and hospitality.
Regional Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.
The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Billion USD |
Scope of the Report | Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Types Covered | Offices, Retail, Industrial, Logistics, Multi-family, Hospitality |
Regions Covered | Northern and Central Region, Western Region, Eastern Region, Southern Region |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Benefits for Stakeholders:
Commercial real estate refers to properties used primarily for business activities, such as offices, retail centers, warehouses, logistics hubs, and hospitality spaces, aimed at generating income through rental, operations, or capital appreciation.
The Saudi Arabia commercial real estate market reached USD 67.5 Billion in 2024.
The market is expected to grow at a CAGR of 3.35% from 2025-2033, reaching USD 90.9 Billion by 2033.
Economic diversification, tourism growth, e-commerce expansion, smart city development, urbanization, and regulatory reforms are collectively driving demand for high-quality office, retail, logistics, and hospitality spaces across Saudi Arabia’s major cities.