Saudi Arabia Real Estate Market Report by Property Type (Residential Real Estate, Commercial Real Estate), and Region 2024-2032

Saudi Arabia Real Estate Market Report by Property Type (Residential Real Estate, Commercial Real Estate), and Region 2024-2032

Report Format: PDF+Excel | Report ID: SR112024A16117
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Saudi Arabia Real Estate Market:

Saudi Arabia real estate market size is projected to exhibit a growth rate (CAGR) of 7.31% during 2024-2032. The increasing urban development, growing emphasis on sustainability, shifts in demographics, and various favorable housing policies implemented by the government are some of the key factors driving the Saudi Arabia real estate market growth.

Report Attribute
Key Statistics
Base Year
2023
Forecast Years
2024-2032
Historical Years
2018-2023
Market Growth Rate (2024-2032) 7.31%


Saudi Arabia Real Estate Market Analysis:

  • Major Market Drivers: The rising urban population and the escalating demand for residential and commercial properties are primarily driving the growth of the market. Additionally, favorable economic conditions and lower interest rates are further catalyzing the market growth.
  • Key Market Trends: Technological advancements, such as blockchain for transparent transactions and virtual reality for property showcasing, are significantly catalyzing the growth of the market. Besides this, sustainable construction practices and a shift towards suburban living are positively impacting the market.
  • Competitive Landscape: Some of the leading companies operating in the market include Abdul Latif Jameel, Dar Ar Alkan, Emaar, Jabal Omar Development Company, Jenan Real Estate Company, Kingdom Holdings Company, and SEDCO Development (SEDCO Holding), among others.
  • Challenges and Opportunities: Challenges include regulatory uncertainties and market fluctuations, while opportunities include increasing investments in emerging urban areas with potential for development and revitalization presents lucrative opportunities in the Saudi Arabia real estate market.


Saudi Arabia Real Estate Market Trends:

Increasing Demand for Houses

The rising population in the country is primarily driving the growth of the market. Moreover, Saudi Arabia has identified housing as one of its key projects under Vision 2030. The housing ministry aims to build 300,000 housing units over the next five years in partnership with the private sector. In addition to this, housing demand is predicted to rise from 99,600 houses in 2021 to 153,000 houses by 2030. To attain a housing supply of 4.96 million residences by 2030, the country will need to build around 1.2 million additional homes during the next decade. Moreover, in the last decade, Saudi Arabia has achieved significant progress in reforming its housing industry. It is expected to accomplish its goals of 70% house ownership and an 8.8% contribution to national GDP by 2030. Such a significant rise in the demand for residential units is anticipated to propel Saudi Arabia's real estate market share in the coming years.

Government Initiatives

As the Kingdom of Saudi Arabia is eyeing a diversified and all-round economy under the "Vision 2030" agenda, the Gulf nation's government is prioritizing the real estate sector as a major non-oil growth machine. Moreover, the concerned government authorities are introducing favorable policies to speed up the process of financing and owning property. For instance, the Sakani program by the Saudi government seeks to raise the rate of homeownership in Saudi Arabia, enhance the first-time homeowner experience, and offer citizen-driven housing and funding options. Apart from the residential real estate, businesses have been hurrying to set up their regional headquarters in Riyadh, following the kingdom's deadline on January 1, 2024, which mandated companies to do so or face the possibility of losing government contracts. Saudi Arabia's Council of Ministers issued a directive in December 2022 mandating that foreign firms interested in seeking Saudi government contracts had to establish their regional headquarters in the country by 2024. Such initiatives are anticipated to propel the Saudi Arabia real estate market demand in the coming years. Moreover, the kingdom plans to invest some US$ 175 Billion in industrial and other large projects over the next five years.

Technological Advancements

Technological advancements are revolutionizing the realty industry, impacting how properties are marketed, transacted, and managed. Prop-tech innovations, including virtual reality tours, artificial intelligence in property management, and blockchain for transparent and secure transactions, enhance the efficiency and accessibility of realty processes. For instance, McKinsey reported that the real estate industry will see a productivity gain of US$ 110 Billion to US$ 180 Billion, primarily by the use of Generative AI. According to the same report generative AI will provide comprehensive customer profiles from data and provide suggestions on the best times to engage with prospects, develop better leads by analyzing product sales data, and introduce sales scripts and automated sales follow-ups. Such technological innovations and emerging trends of prop-tech are anticipated to augment the Saudi Arabia real estate market size in the coming years.

Saudi Arabia Real Estate Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2024-2032. Our report has categorized the market based on property type.

Breakup by Property Type:

  • Residential Real Estate
    • Apartments
    • Villas
    • Others
  • Commercial Real Estate
    • Offices
    • Retail
    • Hospitality
    • Others
       

A detailed breakup and analysis of the market based on the property type have also been provided in the report. This includes residential real estate (apartments, villas, and others) and commercial real estate (offices, retail, hospitality, and others).

In the final quarter of 2022, the office market in Saudi Arabia, especially in Riyadh, continued to show strength in both figures and demand from renters. Moreover, as per the Saudi Arabia real estate market overview, the available office space in Riyadh remains quite limited, with many new projects already fully rented out before completion. Rental rates for high-quality offices (Grade A) in Riyadh went up by 5.8% compared to the year 2021, while rates for lower-grade offices (Grade B) increased by 1.5%. Similarly, in Jeddah, Grade A office rents increased by 7.4% in the 12 months to December 2022, whereas Grade B rents remained unchanged. Occupancy rates for both Grade A and Grade B offices rose to reach 90.6% and 76.0%, up from 87.8% and 74.6% in 2021.

Apart from the commercial sector, in 2022, the number of residential transactions totaled 175,067, and the total value of these transactions stood at SAR 126.5 billion. Moreover, Saudi Arabia has identified housing as one of its key projects under Vision 2030. The housing ministry aims to build 300,000 housing units over the next five years in partnership with the private sector. Government initiatives to propel both residential and commercial real estate are anticipated to provide a positive outlook to the overall market.

Breakup by Region:

  • Northern and Central Region
  • Western Region
  • Eastern Region
  • Southern Region
     

The Saudi Arabia real estate market research 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.

Continued government focus on economic diversification and infrastructure development to fulfill Vision 2030 commitment plans is primarily driving the growth of the real estate market in Saudi Arabia. Furthermore, the rising population is catalyzing the demand for residential and commercial properties, which is also creating a positive outlook for the overall market. Besides this, growing interest from foreign investors attracted by market liberalization efforts is offering lucrative growth opportunities to the market. Additionally, the expanding tourism sector is creating demand for hospitality and leisure real estate. All these factors are positively influencing the Saudi Arabia real estate market price trends.

Competitive Landscape:

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. Some of the key players include:

  • Abdul Latif Jameel
  • Dar Ar Alkan
  • Emaar
  • Jabal Omar Development Company
  • Jenan Real Estate Company
  • Kingdom Holdings Company
  • SEDCO Development (SEDCO Holding)
     

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Saudi Arabia Real Estate Market News:

  • May 2024: The New Murabba Development Company, a subsidiary of Saudi Arabia's Public Investment Fund (PIF), opened invitations to premier design and engineering firms worldwide for the next phase of the Mukaab project. The project is destined to be an iconic landmark, promising to transform Riyadh's skyline and become the centerpiece of the city's new downtown.
  • December 2023: The Board of Directors of NEOM announced Norlana, an ultra-modern active lifestyle community, as the latest addition to the evolving regional development in northwest Saudi Arabia. Norlana is anticipated to create a unique environment where an exclusive community of 3,000 residents will enjoy contemporary luxury fused with advanced technology, setting a pioneering standard for sustainable modern living.
  • September 2023: The Kingdom of Saudi Arabia (KSA) introduced a new system for the sale and rental of off-plan real estate projects, which was approved by the Council of Ministers in September 2023. The system aims to enhance transparency and security in real estate transactions, protecting the rights of buyers, renters, and financiers.


Saudi Arabia Real Estate Market Report Scope:

Report Features Details
Base Year of the Analysis 2023
Historical Period 2018-2023
Forecast Period 2024-2032
Units US$ Million
Scope of the Report Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
  • Property Type
  • Region
Property Types Covered
  • Residential Real Estate: Apartments, Villas, Others
  • Commercial Real Estate: Offices, Retail, Hospitality, Others
Regions Covered Northern and Central Region, Western Region, Eastern Region, Southern Region
Companies Covered Abdul Latif Jameel, Dar Ar Alkan, Emaar, Jabal Omar Development Company, Jenan Real Estate Company, Kingdom Holdings Company, SEDCO Development (SEDCO Holding), etc.
Customization Scope 10% Free Customization
Report Price and Purchase Option Single User License: US$ 3699
Five User License: US$ 4699
Corporate License: US$ 5699
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 Questions Answered in This Report:

  • How has the Saudi Arabia real estate market performed so far and how will it perform in the coming years?
  • What has been the impact of COVID-19 on the Saudi Arabia real estate market?
  • What is the breakup of the Saudi Arabia real estate market on the basis of property type?
  • What are the various stages in the value chain of the Saudi Arabia real estate market? 
  • What are the key driving factors and challenges in the Saudi Arabia real estate?
  • What is the structure of the Saudi Arabia real estate market and who are the key players?
  • What is the degree of competition in the Saudi Arabia real estate market? 


Key Benefits for Stakeholders:

  • IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia real estate market from 2018-2032.
  • The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia real estate market.
  • Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia real estate industry and its attractiveness.
  • Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.

Need more help?

  • Speak to our experienced analysts for insights on the current market scenarios.
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Saudi Arabia Real Estate Market Report by Property Type (Residential Real Estate, Commercial Real Estate), and Region 2024-2032
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