Market Overview
The
Kingdom of Saudi Arabia (KSA) Real Estate Market is projected to reach
USD 413.9 billion in 2024 and grow at a compound annual
growth rate of 13.1% from there until 2033 to reach a
value of USD 1,250.8 billion.
The real estate sector in Saudi Arabia is an important part of its economic landscape. It is driven by rapid urbanization, government initiatives, and Vision 2030's goal of economic diversification, which involves major investments in residential, commercial, and mixed-use developments across major cities like Riyadh, Jeddah, and the capital. Demand for housing has surged, driven by a young, growing population and an increasing number of expatriates.
Further, the market is assisted by government policies like the Saudi Housing Program and initiatives to encourage home ownership. These efforts have led to the creation of affordable housing, emphasizing new, modern communities. Major urban projects, like NEOM and the Red Sea Project, are also contributing to future demand.
Moreover, real estate in Saudi Arabia is transforming toward sustainability and smart technologies. Developers are integrating eco-friendly features and efficient designs into residential and commercial buildings. In addition, the growth of mixed-use developments providing a combination of living, working, and leisure spaces is gaining traction in line with global urbanization trends.
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Also, the demand for luxury real estate is growing, mostly in Riyadh and Jeddah, as the wealthy population increases. Moreover, the commercial real estate sector is expected to expand, mainly with projects related to tourism, entertainment, and retail. Investors are prompted to focus on the evolving needs of the market, like flexibility in commercial spaces and sustainable residential designs.
Key Takeaways
- Market Growth: The Kingdom of Saudi Arabia (KSA) Real Estate Market size is expected to grow by 788.4 billion, at a CAGR of 13.1% during the forecasted period of 2025 to 2033.
- By Type: The building segment is anticipated to get the majority share of the Kingdom of Saudi Arabia (KSA) Real Estate Market in 2024.
- By Business: The Sales segment is expected to be leading the market in 2024
- By Property: The Residential property segment is expected to get the largest revenue share in 2024 in the Kingdom of Saudi Arabia (KSA) Real Estate Market.
- Use Cases: Some of the use cases of The Kingdom of Saudi Arabia (KSA) Real Estate include residential development, commercial real estate, and more.
Use Cases
- Residential Development: The increase in the population and government housing initiatives drive the need for residential properties, mostly affordable housing. Developers are looking to create modern, sustainable communities to accommodate young families and expatriates.
- Commercial Real Estate: With the expansion of businesses and tourism, there is a major need for office spaces, retail centers, and hospitality properties. Major cities like Riyadh and Jeddah are experiencing significant growth in commercial real estate developments.
- Tourism and Hospitality Projects: The Kingdom’s Vision 2030 plan focuses on tourism, leading to high demand for luxury hotels, resorts, and mixed-use developments. Projects like the Red Sea Project and NEOM are key drivers of this sector.
- Mixed-Use Developments: There is a major trend toward mixed-use developments that integrate residential, commercial, and leisure spaces, which cater to modern urban lifestyles, providing convenience and promoting sustainable living.
Market Dynamic
Driving Factors
Government Initiatives and Vision 2030The Saudi government's Vision 2030 plan has been a major driver in transforming the real estate market. With initiatives like the Saudi Housing Program, there has been a focus on growing home ownership, urban development, and large-scale projects, which not only stimulate residential and commercial real estate but also attract global investors.
Urbanization and Demographic Growth
Rapid urbanization and growth in the young population drive the demand for real estate across Saudi Arabia. Cities like Riyadh and Jeddah are expanding, with major demand for housing, commercial spaces, and infrastructure, which drives the need for modern, sustainable developments as the population seeks affordable housing and better living standards.
Restraints
Regulatory and Bureaucratic Challenges
While the Saudi real estate market has grown, regulatory challenges and bureaucratic processes can slow down project approvals and development. Complex zoning laws, land ownership restrictions, and lengthy permit processes may intimidate some investors and developers, delaying growth in the sector.
Economic Fluctuations and Dependency on Oil
The Saudi economy is still heavily dependent on oil exports, making the real estate market vulnerable to global oil price fluctuations. Economic downturns or price volatility can impact consumer purchasing power, investor confidence, and overall demand for real estate, especially in non-residential sectors.
Opportunities
Tourism and Hospitality Expansion
With Vision 2030 prioritizing tourism and entertainment, the demand for hospitality-related real estate is growing. Developments like luxury resorts, hotels, and leisure facilities in areas such as the Red Sea Project and NEOM present significant opportunities for investors and developers catering to international tourists and local travelers alike.
Affordable Housing and Urban Development
The rise in the need for affordable housing due to a young and growing population provides various opportunities in the residential real estate market. Government support for affordable housing projects, along with a growing demand for modern, sustainable communities, allows developers to tap into a lucrative and expanding sector.
Trends
Rise of Smart and Sustainable Developments
There is a growing focus on incorporating smart technologies and eco-friendly designs in both residential and commercial properties. Developers are highly focusing on sustainability, with green building certifications and energy-efficient solutions becoming a major trend in new projects across Saudi Arabia, aligning with global environmental standards.
Shift towards Mixed-Use Developments
The need for mixed-use developments that integrate residential, commercial, and recreational spaces is on the rise. These projects meet the evolving needs of modern urban lifestyles, providing convenience and promoting community living, which is being seen in major cities like Riyadh and Jeddah, where integrated spaces are attracting both residents and businesses.
Research Scope and Analysis
By Type
The buildings segment is expected to lead the growth of Saudi Arabia's real estate market in 2024 by providing important spaces for living, working, and leisure. Residential buildings are vital to accommodate the country's growing population, like young families and expatriates, supporting the demand for modern housing. Commercial buildings, like offices and retail spaces, drive business growth and attract global investors.
In addition, hospitality buildings, like hotels and resorts, are expanding due to Saudi Arabia's focus on tourism and entertainment. The growth of mixed-use buildings that combine residential, commercial, and recreational areas also reflects the market’s evolution, providing convenience and appealing to urban dwellers. These developments contribute to overall urbanization and economic diversification.
Further, land also plays a vital role in Saudi Arabia’s real estate market by providing the foundation for new developments.
As cities expand, land is vital for creating residential, commercial, and industrial spaces. Large-scale projects depend on large lands to build innovative communities and attract investments. With the growth in urbanization and government initiatives to enhance the infrastructure, the need for land has risen, driving both residential and commercial development and contributing to the country’s overall growth and economic diversification.
By Business
Sales play a vital role in the growth of Saudi Arabia's real estate market by driving transactions and generating revenue, as it is projected to lead the overall market in 2024. As the demand for residential, commercial, and mixed-use properties rises, real estate sales ensure that developers can monetize their projects and attract investors. The sales process helps in matching buyers with suitable properties, helping in the development of new communities and commercial spaces.
Also, successful sales strategies boost investor confidence, promoting development and driving economic growth. With government help and a growing population, the real estate sales sector is vital in turning plans into tangible properties, contributing to both market expansion and the country's Vision 2030 objectives.
Further, the businesses play an important role in Saudi Arabia’s real estate market by providing flexible housing and commercial space options. With a rise in the population and higher demand for both residential and commercial properties, rental income helps developers and property owners maintain a steady cash flow. Renting allows people, mainly expatriates and younger generations, to access quality living spaces without long-term commitments. As businesses expand, rental properties for offices and retail spaces also grow, contributing to the market’s overall development and supporting Saudi Arabia’s economic diversification goals.
By Property
Residential properties in Saudi Arabia’s real estate market are anticipated to dominate in 2024 by meeting the housing needs of a growing population. With a young, expanding demographic, there is growth in demand for both affordable and luxury housing. Government initiatives, like the Saudi Housing Program, focus on making homeownership more accessible, which stimulates further residential development.
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Residential properties not only meet local families but also expatriates moving to Saudi Arabia for work. As cities like Riyadh and Jeddah continue to grow, new residential developments are vital for providing modern living spaces, contributing to urbanization and overall economic progress, which helps diversify the economy in line with Saudi Arabia’s Vision 2030 goals. Further, hospitality properties play a key role in the growth of Saudi Arabia's real estate market by helping the country's expanding tourism sector. With Vision 2030 focusing on growing tourism, there is rising demand for hotels, resorts, and other leisure facilities.
These properties attract both international visitors and locals, driving investment and creating jobs. As tourism continues to grow, the hospitality sector helps diversify the economy, contributes to urban development, and helps the country’s goal of becoming a global tourism hub.
The Kingdom of Saudi Arabia (KSA) Real Estate Market Report is segmented on the basis of the following
By Type
- Land
- Agricultural Land
- Development Land
- Buildings
By Business
By Property
- Residential
- Luxury Homes
- Affordable Housing
- Student Housing
- Senior Living
- Commercial
- Office Spaces
- Retail Spaces
- Mixed Use Developments
- Industrial
- Warehousing
- Manufacturing Facilities
- Hospitality
- Hotels & Resorts
- Short-term Rentals
Competitive Landscape
The competitive landscape of Saudi Arabia’s real estate market is marked by a mix of local and international players looking to meet the growing demand for residential, commercial, and hospitality properties. Developers are aiming for large-scale projects, urban regeneration, and sustainable designs to appeal to modern buyers and investors. Government-backed initiatives like affordable housing programs further intensify competition by encouraging new entrants.
Some of the prominent players in the The Kingdom of Saudi Arabia (KSA) Real Estate are
- Emaar Properties
- CBRE
- Cushman & Wakefield
- Knight Frank
- Jones Lang LaSalle
- Red Sea Global
- Al Saedan Real Estate
- Jabal Omar Development Company
- Dar Al Arkan
- Al Habtoor Group
- Other Key Players
Recent Developments
- In November 2024, Branded real estate announced a potential billion-dollar partnership deal to bring entertainment IP-themed branded real estate to the Kingdom, like the Smurfs and Emojis could be coming to Saudi Arabia
- In November 2024, Safa Investment Company launched the “Flow MENA 1st Residential Fund,” an income-generating fund with a total value of USD 292 million during its participation in Cityscape Global 2024 in Riyadh in partnership with Flow MENA and SICO Capital, marking a strategic step by Safa Investment to enhance the value in the residential sector and offer unique investment opportunities
- In October 2024, Saudi Arabia’s Public Investment Fund established a new property developer focused on housing for staff, containing numerous major construction projects. The Smart Accommodation for Residential Complexes Co. would look into the rise in demand for housing solutions in both public and private sector projects as the Kingdom continues its extensive infrastructure expansion.
- In September 2024, Mountain View Developments launched “Mountain View Saudi Arabia,” marking a significant step in its regional expansion, which is the first land acquisition in Saudi Arabia, in partnership with Maya Real Estate Development and Al Saedan Real Estate, which is strategically located in Riyadh, which begins an ambitious plan to develop multiple projects and urban communities in alignment with Saudi Arabia’s Vision 2030.
Report Details
| Report Characteristics |
| Market Size (2024) |
USD 413.9 Bn |
| Forecast Value (2033) |
USD 1,250 Bn |
| CAGR (2024-2033) |
13.1% |
| Historical Data |
2018 – 2023 |
| Forecast Data |
2024 – 2033 |
| Base Year |
2023 |
| Estimate Year |
2024 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Type (Land and Buildings), By Business (Sales, Rental, and Lease), By Property (Residential, Commercial, Industrial and Hospitality) |
| Regional Coverage |
The Kingdom of Saudi Arabia (KSA) |
| Prominent Players |
Marriott International, Accor, Hyatt Hotels Corporation, Attar Travel, Almosafer, Zahid Travels, Riyadh Air, Four Seasons Hotels & Resorts, Six Senses, Flynas, and Other Key PlayersEmaar Properties, CBRE, Cushman & Wakefield, Knight Frank, Jones Lang LaSalle, Red Sea Global, Al Saedan Real Estate, Jabal Omar Development Company, Dar Al Arkan, Al Habtoor Group, and Other Key Players |
| Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Kingdom of Saudi Arabia (KSA) Real Estate Market size is expected to reach a value of USD 413.9 billion in 2024 and is expected to reach USD 1,250.8 billion by the end of 2033.
Some of the major key players in the Kingdom of Saudi Arabia (KSA) Real Estate Market are Emaar Properties, CBRE, Cushman & Wakefield, and others.
The market is growing at a CAGR of 13.1 percent over the forecasted period.