Saudi Arabia Real Estate Market

Saudi Arabia Real Estate Market Size and Share:

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. The market is spurred by Vision 2030 initiatives, economic diversification, urbanization, and population growth. Expansion is aided by government investment, regulatory reform, and foreign investment incentives. Increased demand for residential, commercial, and logistics space, and smart city technology and sustainability aspirations also spur Saudi Arabia real estate market share and transformation.

Saudi Arabia’s real estate market is being driven by strong government support and strategic initiatives aligned with Vision 2030. The government’s push for economic diversification away from oil has led to major investments in infrastructure, tourism, and housing. Large-scale projects such as new cities, entertainment zones, and special economic zones have significantly increased demand for real estate development. Population growth, particularly among the youth, and an increasing demand for urban living have further fueled the need for residential, retail, and commercial spaces. Regulatory reforms and foreign investment incentives have also made the sector more accessible and attractive to both local and international investors, creating a more transparent and competitive environment for real estate development. For instance, in April 2025, Saudi Arabia raised its undeveloped land tax to up to 10% and expanded it to include vacant buildings, aiming to curb speculation and boost housing supply. The reforms align with Vision 2030 goals to improve urban land use. Saudi startups led MENA funding in April, securing USD 158.5 Million.

Technological advancements and digital transformation are also fueling the Saudi Arabia real estate market growth. The use of smart city technologies, digital platforms for property transactions, and data-driven planning is increasing efficiency and transparency in the industry. Furthermore, the growth of e-commerce has increased demand for logistics and warehouse space, while changes in lifestyle are enhancing demand for mixed-use developments and community living. The increasing focus on sustainability and green building practices is in line with international trends and facilitates long-term value creation. Coupled with enhanced financing opportunities and government-backed home programs, they continue to propel expansion and diversification within the Saudi real estate industry.

Saudi Arabia Real Estate Market Trends:

Rising Government Initiatives

Increasing investments in infrastructure, urban development, and tourism projects by the government of Saudi Arabia are driving the growth of the market. For instance, in 2023, the number of domestic tourists in the Kingdom reached 81.9 million, while the number of international tourists reached 27.4 million, highlighting the robust tourism industry in Saudi Arabia, according to government reports. Additionally, for instance, the Saudi government’s Vision 2030 aims to diversify the economy away from oil dependency. According to the industry report, reforming the housing sector in Saudi Arabia and improving the access of Saudi families to housing that needs the needs is a major element of the Kingdom's Vision 2030 period. Since 2017, when around 1.6m Saudi nationals were on waiting lists for government housing programs, the Ministry of Municipal and Rural Affairs and Housing (MoMRA) has rolled out several initiatives to increase the availability of affordable housing and improve accessibility to financing options. The Vision states that ‘housing is the foundational asset that is capable of shaping and influencing the vibrancy of families, communities, and broader society.’ Transforming the housing sector and increasing investment in housing meets the objectives of Vision 2030 in multiple ways including creating sustainable job opportunities, increasing the contribution of the private sector, engaging non-governmental organizations (NGOs), and driving economic growth. This is boosting the Saudi Arabia real estate market statistics market significantly.

Growing Population and Urbanization

Saudi Arabia's population is growing rapidly, leading to increased demand for housing, commercial spaces, and infrastructure. The urbanization trend is particularly strong, with more people moving to cities, driving the need for new residential and commercial developments. According to the data from the UN-Habitat, urbanization in Saudi Arabia is expected to reach up to 97.6 % by the year 2030, out of which Riyadh (the capital) will reach 8.2 million out of which 75% will be Saudis. Considering the current growth rates and the Kingdom’s long-term demographic estimates, the annual demographic growth in the Kingdom is expected to reach an average of 0.87 %, bringing the number to about 31.457 million in 2030, of which 4.214 million are non-Saudis. Most of the population is concentrated in the capital Riyadh, the secondary cities of Jeddah and Dammam, and the holy cities of Mecca and Medina. This is expected to positively impact the Saudi Arabia real estate market outlook over the coming years.

Increasing Economic Reforms and Foreign Investment

Economic reforms aimed at creating a more business-friendly environment have attracted foreign investments in the real estate sector. Policies that allow greater foreign ownership and the establishment of real estate investment trusts (REITs) are enhancing market liquidity and encouraging both local and international investors to participate in the market. For instance, in January 2024, Chairman of the Saudi Capital Market Authority (CMA) announced plans to permit foreign investors to participate for the first time in publicly traded companies owning property in Makkah and Madinah. The CMA aims to broaden the range of financial instruments available in the capital market throughout the year by enhancing the debt market, real estate ventures, and fund-related developments. The authority had already enabled financial institutions to accept foreign investments in real estate funds partially or entirely focused on assets within these two cities. Elkuwaiz emphasized the untapped potential in the real estate sector, particularly through various capital market tools such as public offerings, listings, and debt financing.

Saudi Arabia Real Estate Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Saudi Arabia real estate market, along with forecast at the country and regional levels from 2025-2033. The market has been categorized based on property type.

Analysis by Property Type:

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

The residential real estate sector in Saudi Arabia is driven by the rapidly growing population and organization. Government initiatives such as the Sakani program aim to increase homeownership rates by providing affordable housing. In addition to this, Vision 2030’s focus on diversifying the economy and developing infrastructure is leading to new residential projects, attracting both local and foreign investments. In the commercial real estate sector, the demand is propelled by economic diversification efforts under Vision 2030. Major developments like the King Abdullah Financial District and NEOM are creating new business hubs. The increased foreign investment, favorable business regulations, and a growing emphasis on tourism and entertainment are further boosting the demand for commercial properties.

Regional Analysis:

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

The northern and central region of Saudi Arabia including Riyadh, is experiencing rapid real estate Riyadh's status as the capital city and economic hub drives demand for residential, commercial, and office spaces. Government initiatives such as King Salman Park and the Qiddiya Entertainment City Project are further boosting real estate development in this region.

The western region, encompassing Jeddah and Makkah, is a focal point for real estate due to religious tourism and business opportunities. Significant projects include the Jeddah Tower and various hospitality developments. The region's strategic location on the Red Sea also supports ambitious projects like the Red Sea Project, enhancing its real estate market’s attractiveness. For instance, in May 2025, Jeddah announced 29 new real estate projects across commercial, industrial, and residential sectors. Saudi bank lending hit $827 Billion in March, driven by corporate loans, especially real estate.

The eastern region, with key cities such as Dammam and AI Khobar, is crucial for Saudi Arabia’s oil industry. Real estate demand here is driven by the presence of major oil companies and industrial activities. The region is seeing a rise in residential and commercial developments, supported by government plans to diversify the economy and improve infrastructure.

The southern region, including cities such as Abha and Jazan, is witnessing growing real estate development due to tourism and agriculture. Government efforts to enhance the region's infrastructure and tourism appeals, like the development of Jazan Economic City, are driving demand for residential, commercial, and hospitality real estate, contributing to overall market growth.

Competitive Landscape:

The Saudi Arabia real estate market forecast anticipates the market to remain dynamic and evolving, driven by Vision 2030 and increasing demand for residential, commercial, and mixed-use developments. The market features a mix of private developers, government entities, and public-private partnerships, all competing to deliver large-scale, innovative projects across key cities such as Riyadh, Jeddah, and Makkah. Significant investments are being made in tourism, hospitality, and smart city infrastructure, further intensifying competition. The government’s focus on economic diversification and urban expansion has also spurred demand for affordable housing, luxury properties, and sustainable communities. For instance, according to industry reports, in April 2025, Saudi Arabia permitted foreign investors to own and sell real estate for investment purposes, excluding properties in Makkah and Madinah. The Ministry of Investment announced that eligible uses included private residences, company headquarters, warehouses, and industrial facilities. Approvals were granted within five working days through the ministry’s e-services portal, with no financial fee required. Developers were required to submit certified project reports for developments valued at a minimum of SAR 30 million. The move aimed to boost investment and development beyond the two holy cities. With continued regulatory reforms, foreign investment incentives, and digital transformation initiatives, the market remains highly competitive, with players striving to differentiate through scale, quality, and technological integration.

The report provides a comprehensive analysis of the competitive landscape in the Saudi Arabia real estate market with detailed profiles of all major companies, including: 

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

Latest News and Developments:

• April 2025: Hospitality Management Holdings (HMH) expanded its real estate footprint in Saudi Arabia by signing an agreement to operate the 157-room Corp Al Khobar Corniche Hotel and a memorandum of understanding for a new hotel development in Dammam. Additionally, HMH prepares to open a flagship 460-room hotel in Makkah by mid-2025, targeting the religious tourism sector.
• April 2025: Diriyah Company launched the Armani Residences Diriyah at the Diriyah Sales Center. Delivering a distinctive living experience in the city center of Diriyah, the limited-edition apartments reportedly include custom interiors handpicked by the Italian fashion designer Giorgio Armani.
• April 2025: Red Sea Global introduced Laheq Island, a new residential development in the Red Sea that aimed to introduce the island way of life to Saudi Arabia. Laheq is reportedly the first project at the Red Sea which primarily focuses on the ownership of residential properties and is set to debut in 2028.
• March 2025: Red Sea Global introduced branded residences from Nujuma, a Ritz-Carlton Reserve, Jumeirah, and Miraval. These properties, including 21 exclusive villas at Nujuma on Ummahat Island, combine high-end design with environmental stewardship, ensuring protected sea views and beach access.
• February 2025: Tameer Vision Real Estate established a collaborative alliance with Huawei for the development of cutting-edge, state-of-the-art residential spaces equipped with advanced fiber connectivity. This partnership aligns with Saudi Arabia’s Vision 2030 and the Ministry of Communications and Information Technology’s 10Gbps Society program that aims to establish an ultrafast broadband infrastructure across Saudi Arabia.

Saudi Arabia Real Estate Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s 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 2019-2033.
• The Saudi Arabia real estate market research report provides the latest information on the market drivers, challenges, and opportunities in the regional 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.