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 provides Saudi Arabia real estate market predictions, estimating 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 is key to real estate growth. It drives major projects that need lots of residential, commercial, and tourism spaces. For example, NEOM is a high-tech city, while Qiddiya will be an entertainment center. Both projects require huge investments in housing, hotels, and infrastructure. NEOM’s The Line aims to accommodate millions, increasing demand for homes and businesses. These government-backed efforts draw in global developers like Emaar Properties. They create public-private partnerships and boost real estate activity. The Kingdom seeks to diversify its economy and improve urban living, which fuels market expansion.

• Urbanization and Population Growth

Rapid urbanization and population growth in cities like Riyadh and Jeddah are key drivers of the real estate market. With a young, growing population, demand for housing, retail spaces, and office complexes is surging. Al Rajhi Capital’s mixed-use developments in Riyadh serve urban families looking for modern apartments and amenities. Government programs like Sakani boost homeownership by providing affordable housing options. This trend prompts developers such as Dar Al Arkan to start large projects, addressing the needs of a growing urban population and supporting market growth.

• Tourism and Hospitality Expansion

Saudi Arabia’s tourism and hospitality sectors are growing under Vision 2030. This plan aims to attract millions of visitors and boost the real estate market.Iconic projects like the Red Sea Project and AlUla require hotels, resorts, and serviced apartments. This need sparks real estate development. For example, the Red Sea Project includes luxury resorts from Accor, boosting demand for high-end properties. Also, more religious tourists visit Mecca and Medina, increasing the need for short-term rentals. This trend prompts real estate firms to invest in hospitality properties, fueling market growth.

Key Trends in the Saudi Arabia Real Estate Market

• Rise of Smart Cities and Sustainable Developments

The Saudi real estate market is focusing more on smart cities and sustainable developments. This aligns with global environmental trends and Vision 2030’s goals. Projects like NEOM use smart technologies, such as IoT and renewable energy, to create eco-friendly urban spaces. For instance, NEOM features solar-powered buildings that lower environmental impact and attract eco-friendly investors. Developers like Roshn are also prioritizing sustainable designs in homes. They include energy-efficient systems and green spaces. This trend boosts property appeal, meets regulations, and increases demand for modern, eco-friendly real estate across the Kingdom.

• Growth of PropTech and Digital Platforms

The adoption of property technology (PropTech) is changing the Saudi real estate market. It streamlines transactions and improves customer experiences. Digital platforms like Aqar and Sakani allow for online property searches, virtual tours, and e-payments. This makes real estate easier to access. For example, Aqar’s app lets users explore properties in Jeddah with 360-degree tours. It appeals to tech-savvy buyers. The shift to digital solutions during the COVID-19 pandemic sped up this trend. Now, developers and agents invest in PropTech. This boosts transparency and efficiency in property sales and rentals. Overall, it reshapes how the market operates.

• Demand for Affordable Housing

The demand for affordable housing is rising in the Saudi real estate market. This trend is fueled by government efforts to boost homeownership among citizens. Programs like Sakani, backed by the Ministry of Housing, offer subsidized financing and ready-built homes for middle-income families. For instance, Roshn’s Al Arous project in Jeddah features affordable villas with modern amenities, helping to tackle housing shortages. This trend pushes developers to create cost-effective, quality housing solutions. It balances affordability with urban living standards and supports Vision 2030’s goal of enhancing quality of life. This drives steady growth in the 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 Saudi Arabia real estate market is set for strong growth. This is driven by Vision 2030’s mega-projects, rapid urbanization, and a focus on tourism and sustainability. NEOM and the Red Sea Project will increase the need for homes, businesses, and hotels. Also, PropTech innovations will improve market access. Affordable housing initiatives will meet the needs of a growing population, with support from developers like Roshn. However, challenges remain. Regulatory complexities and a reliance on foreign investment may need policy changes. Government support, a focus on sustainability, and digital progress will boost Saudi Arabia’s real estate market. This sector will be vital for economic diversification and urban development.

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.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

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