SAUDI ARABIA REAL ESTATE MARKET

Saudi Arabia Real Estate Market Size

Saudi Arabia real estate market size is projected to grow at a CAGR of 6.2% between 2025 and 2032 primarily driven by rapid population growth & urbanization driving demand for housing, vision 2030 reforms & government investments, tourism & hospitality development, KSA to allow foreign property ownership.

Saudi Arabia Real Estate Market Overview

The real estate industry plays a vital role in the Saudi Arabian economy which accounts for approximately seven percent contribution to the GDP and creates around 40,000 jobs. Reflecting optimism in its economic reform initiatives, the Kingdom has increased its fiscal surplus forecasts, supported by rising oil prices.

Amidst economic expansion, the real estate sector plays a crucial role by offering housing, enabling business operations, and presenting investment opportunities. The value generally increases over time which positions it as a key driver of wealth creation and diversification for investment portfolios.

Saudi Arabia Real Estate Market Growth Drivers

Rapid Population Growth & Urbanization Driving Demand for Housing

Saudi Arabia represents more than fifty percent from the total GCC population which makes it the most populous country in the region. With the population projected to increase to more than 47 million people by 2050, it is expected to see a rise in households which will fuel a notable increase in housing demand. The increasing population along with rapid urbanization has fueled a growing demand for affordable housing particularly for individuals with average incomes or less in cities where land and construction material costs are significantly high.

With the swift expansion of cities in the country, there has been a corresponding increase in the need for housing, commercial real estate, and various property types. This spike in demand has led to more investment in new projects which cover office buildings and residential. The surge in e-commerce and the rising trend of online shopping have also created a greater need for logistic spaces. This leads to an increased requirement for industrial properties.

Vision 2030 Reforms & Government Investments

Saudi Arabia real estate market overview is observing significant growth as the government has implemented numerous reforms and initiatives which reflect the Vision 2030 plan to reshape the housing sector in the country. A major aim is to boost home ownership rates by seventy percent by 2030. Approximately USD 1 trillion in infrastructure and real estate projects are in progress with plans for at least eight additional new cities.

Initiatives such as the Sakani program and better financing options which are introduced as part of Vision 2030 have significantly raised residential properties ownership rates. The Saudi Housing Program has also taken the place of the previous system which was plagued by slow processing and did not meet citizen satisfaction.

The Ministry of Municipal and Rural Affairs and Housing has developed a new housing framework in the past few years. It forms over sixteen separate entities responsible for managing essential housing market reforms and initiatives. The significant transformation of Saudi Arabia’s real estate market trends thereby can be attributed to the government’s effective initiatives and policies. That includes improved financial access, tax reforms, digital support, along with collaborations with regulatory agencies and private sector.

The government has also introduced a new initiative designed to speed up its plan for attracting foreign companies with provisions allowing certain businesses to operate without establishing a headquarters in Saudi Arabia. Businesses that have foreign operations under around USD 266,000 are allowed to operate in the country without needing a local headquarters. The move is anticipated to stimulate the construction of retail spaces, offices, hospitality facilities and various infrastructures along with overall investment. With these initiatives combined with supportive demographic factors, Saudi Arabia real estate market 2024 and beyond is expected to undergo significant transformation.

Tourism & Hospitality Development

Saudi Arabia has pledged nearly USD 1 trillion in investments for non-hydrocarbon sectors by 2035 to support economic diversification and advance technological development. As part of the second phase of Saudi Vision initiatives, the government has introduced key reforms aimed at sustaining growth in construction and related industries. These measures are expected to attract increased investment in both construction and tourism, further accelerating market expansion. According to the World Travel & Tourism Council, Saudi Arabia’s travel and tourism sector grew by 14%, contributing 9.5% to the nation’s total economic impact. This rapid growth in tourism is projected to significantly boost demand for facility management services over the forecast period.

KSA to Allow Foreign Property Ownership

As per Real Estate General Authority (REGA), starting January 2026, Saudi Arabia will officially allow foreign buyers to purchase homes, land, and agricultural farms across the country, with the exception that properties in Mecca and Madinah will remain restricted to Muslim buyers only. This change is policy is projected to drive the real estate demand in KSA during the forecast period.

Kingdom of Saudi Arabia Real estate market Segment Analysis 

Property Type Market Insights:

Residential Real Estate Market Insight

As housing has been recognized as a critical project in Vision 2030, the residential sector is taking the lead. The Housing Ministry plans to construct 300,000 residential units in collaboration with the private sector in the next five years.

KSA residential real estate sector is thriving owing to robust economic growth and large population. Recently the residential sector achieved impressive momentum by providing 27,500 units in Jeddah and Riyadh. This brings the total units to 1.46 million in Riyadh and 891,000 in Jeddah. The residential sectors are also growing to support an increasing population which is influenced by immigration and lifestyle decisions which in turn strengthens the market.

Hospitality Real Estate Market Insight

The hospitality sector including hotels and villas also experienced growth as the country gears up to host 150 million tourists. The tourism and hospitality industry are a key contributor to the real estate market as luxury hotels and resorts are accommodating the growing guests.

Saudi Arabia’s hospitality sector is expanding strongly, with the Average Daily Rate rising by 1.9% in 2024 over 2023. Growth has been driven by the Kingdom surpassing its Vision 2030 target of 100 million annual tourists seven years earlier, alongside major cultural, entertainment, and heritage investments. New attractions like AlUla, the New Murabba project, and giga-projects such as NEOM and Amaala are further propelling the hospitality market’s momentum.

Office Real Estate Market Insight

Financial and business services office space is experiencing a robust growth and driving Grade A office types. The robust GDP growth coupled with Regional Headquarters (RHQ) program is driving the office space segment and is projected to grow at a robust rate. The office market continues to be competitive as landlords are actively prompting negotiations and welcoming new entrants. Meanwhile, the retail market has shown stability despite facing some pressures.

Retail Real Estate Market Insight

Retail sales volume in Saudi Arabia is expected to grow at a CAGR of 4.5% between 2025 and 2032. Retail operators are increasingly prioritizing integrated entertainment and immersive experiences as consumer preferences shift away from traditional standalone retail formats.

Saudi Arabia Real Estate Market Major Players & Competitive Landscape

Some of the major players dominating the KSA real estate markets are Ewaan, Kingdom Holding Company, EMAAR, SEDCO Development, Al Saedan Real Estate, Alandalus Property, among others.

Saudi Arabia Real Estate Market News

• • In July 2026, the government of Saudi Arabia announced that it will allow foreign buyers to purchase homes, land, and agricultural farms, while ownership in Mecca and Madinah will remain restricted to Muslims from January 2026. Foreign property ownership will be permitted only where it aligns with national interests, and will be limited within approved economic and residential zones, typically capped at 70%–90% of a development.

Saudi Arabia Real Estate Market Scope of the Report

Saudi Arabia Real Estate Market Research Report Segmentation

The Real Estate Market has been segmented on the basis of Property Type. Based on the Property Type, the market is segmented into Residential Real Estate, Office Real Estate, Hotel Real Estate, Retail Real Estate and Others.

Saudi Arabia Real Estate Market by Property Type

• • Residential Real Estate
  • Office Real Estate
  • Hotel Real Estate
  • Retail Real Estate
  • Others

Saudi Arabia Real Estate Market Leading players

• • Ewaan
  • Kingdom Holding Company
  • EMAAR
  • SEDCO Development
  • Al Saedan Real Estate
  • Alandalus Property