The Saudi Arabia Commercial Real Estate Market is Segmented by Property Type (Office, Retail, Logistics, and More), by Business Model (Sales and Rental), by End User (Individuals / Households, Corporates and SMEs and More), and by Region (Riyadh, Jeddah, Makkah and Rest of Saudi Arabia). The Market Sizes and Forecasts are Provided in Terms of Value (USD).

Saudi Arabia Commercial Real Estate Market was valued at USD 34.9 Billion in 2024 and is expected to reach at USD 71.01 Billion in 2030 and project robust growth in the forecast period with a CAGR of 12.4% through 2030

Saudi Arabia, Turkey, and UAE were the largest commercial real estate markets in the Middle East and Africa (MEA) region in 2024. As of the last month of 2024, the value of commercial real estate in Saudi Arabia was estimated at ****** billion U.S. dollars. In Turkey, this figure stood at ****** billion U.S. dollars.

Saudi Arabia Commercial Real Estate Market size was valued at USD 45.2 Billion in 2024 and is projected to reach USD 68.7 Billion by 2031, growing at a CAGR of 5.3% from 2024 to 2031.

Saudi Arabia Commercial Real Estate Market Drivers

Vision 2030: This national transformation plan is at the heart of Saudi Arabia's economic diversification efforts. It aims to reduce reliance on oil and promote growth in various sectors, including tourism, entertainment, and technology. This vision is driving massive investments in infrastructure and mega-projects, creating significant demand for commercial real estate.

Economic Diversification: As Saudi Arabia diversifies its economy, new industries are emerging and existing ones are expanding. This requires a variety of commercial spaces, including offices, retail outlets, industrial parks, and logistics facilities, fueling the demand for commercial real estate.

Social Reforms: Social reforms, such as increased female participation in the workforce and relaxed social restrictions, are creating new opportunities for businesses and driving demand for commercial spaces. For example, the rise in female employment necessitates more office spaces, while the growth in entertainment options boosts the need for retail and leisure facilities.

Tourism Development: Saudi Arabia is actively promoting tourism as a key sector for economic growth. This is leading to significant investments in hospitality infrastructure, including hotels, resorts, and entertainment venues, which are driving the demand for commercial real estate in the hospitality sector.

Mega-Projects: The Kingdom is home to several ambitious mega-projects, such as NEOM, the Red Sea Project, and Riyadh's new city center. These projects involve the development of large-scale commercial, residential, and entertainment districts, creating substantial demand for commercial real estate across various sectors.

Government Support and Initiatives: The Saudi government is actively supporting the growth of the commercial real estate market through various initiatives, such as easing regulations, streamlining investment procedures, and providing financial incentives. This creates a favorable environment for developers and investors.

In the one year period till the first quarter of 2021, due to aftermath of the global COVID-19 pandemic, the commercial real estate price index in Saudi Arabia decreased by 0.4 percent. At the height of the global pandemic in Q3 2020, the commercial real estate index in Saudi Arabia decreased by 2.5 percent.

The Saudi Arabian office real estate market is experiencing robust growth, fueled by Vision 2030's ambitious diversification plans and significant investments in infrastructure and non-oil sectors. The market's size, while not explicitly stated, can be reasonably estimated based on the provided CAGR of 8.12% and a base year of 2025. Assuming a 2025 market size of approximately $5 billion (USD), the market is projected to expand considerably by 2033. Key growth drivers include the expansion of the financial services, technology, and government sectors, leading to increased demand for modern and well-located office spaces. Major cities like Riyadh, Jeddah, and Makkah are at the forefront of this growth, attracting both domestic and international companies. The thriving business environment, coupled with government initiatives to enhance the ease of doing business, are contributing to this positive trajectory. However, challenges remain. While the overall outlook is optimistic, potential restraints include fluctuations in global oil prices, which can indirectly impact the overall economic climate. Furthermore, the market needs to adapt to evolving work patterns, such as the increased adoption of remote work and flexible office arrangements. Competition among established players and new entrants is also shaping the market landscape. The success of Saudi Arabia's real estate market hinges on the continued implementation of Vision 2030, its ability to manage economic fluctuations effectively, and its capacity to attract and retain foreign investment. The successful diversification of the Saudi Arabian economy will play a crucial role in the long-term growth of the office real estate sector. Recent developments include: November 2022: Arabian Centres Company, Saudi Arabia's largest mall operator, has agreed to sell non-core assets worth 2 billion Saudi riyals to Adeer Real Estate. A study determined that the assets were best suited for residential or office space development rather than supporting the mall operator's strategic priorities of developing lifestyle destinations., October 2022: Ajdan Real Estate Development Company announced that it has signed a contract with Al-Muhaidib Group to develop, market, and operate the 250 million Saudi riyals (USD 66.5 million) Bayfront commercial project on the east coast of Al-Khobar. The Bayfront will be located on the northern part of Al-Khobar's beach, spanning over 100,000 square metres (sqm) from the shore and a 1,600 sqm island.. Notable trends are: Increasing Demand for Office Spaces in Key Commercial Cities.

The Saudi Arabia Office Real Estate Market Report is Segmented by Major Cities (Riyadh, Jeddah, Makkah, and Other Cities). The Report Offers Market Size and Forecasts in Value (USD Billion) for all the Above Segment.

Saudi Arabia Commercial Real Estate comes with extensive industry analysis of development components, patterns, flows, and sizes. The report calculates present and past market values to forecast potential market management during the forecast period between 2025 - 2033.

The Saudi Arabian real estate market, valued at $69.51 billion in 2025, is experiencing robust growth, projected to expand at a compound annual growth rate (CAGR) of 8% from 2025 to 2033. This expansion is fueled by several key drivers. Government initiatives like Vision 2030, aimed at diversifying the economy and improving infrastructure, are significantly boosting investment in both residential and commercial properties. A burgeoning population and rising urbanization are increasing demand, particularly for apartments and villas in residential sectors and offices, retail spaces, and hospitality venues in commercial sectors. Furthermore, increased foreign investment and a favorable regulatory environment are attracting both domestic and international players, contributing to market dynamism. However, challenges remain. While material costs and fluctuating interest rates can influence market stability, the overall growth trajectory remains positive, driven by the long-term vision and strategic economic diversification plans of the Saudi Arabian government. The market segmentation reveals a strong presence in both residential and commercial sectors. Residential real estate, encompassing apartments and villas, constitutes a significant portion of the market, driven by the increasing population and government initiatives focused on affordable housing solutions. Commercial real estate, including offices, retail spaces, hospitality, and other sectors, is witnessing growth due to expansion in various industries and increased tourism. Key players like Emaar, Jabal Omar, and Sedco Development are actively shaping the market landscape, alongside international firms such as JLL and Century 21. The competitive landscape is dynamic, with both established players and new entrants vying for market share, further fueling innovation and competition in the sector. The forecast period suggests continued growth, albeit with potential fluctuations influenced by global economic conditions and local regulatory adjustments. Recent developments include: May 2023, The National Security Services Company (SAFE), which leads the transformation of the local security services sector, has signed an acquisition agreement to acquire ABANA Enterprises Group Company's assets connected to the transit of cash and valuable goods. ABANA Enterprises Group Company is at the forefront of providing such services in the Kingdom. The acquisition of ABANA Enterprises Group Company's assets connected to the transit of cash and valuable goods will help SAFE achieve its primary goal of providing the most advanced security solutions and services for customers., July 2022, SEDCO Capital REIT Fund's board has approved acquiring two income-generating real estate assets worth SR700 million (USD 187 million), located in Riyadh and Jeddah. This acquisition will be covered by new units and by using banking facilities in accordance with the Fund's terms and conditions, according to a bourse filing. The Fund expects that this acquisition will positively impact its overall performance, as it seeks to add value to its portfolio, as well as its unitholders.. Key drivers for this market are: 4., Growth in Commercial Activities and Increased Competition4.; Increasing Demand for Affordable Housing Units. Potential restraints include: 4., Growth in Commercial Activities and Increased Competition4.; Increasing Demand for Affordable Housing Units. Notable trends are: The Residential Sector Sustains Country's Real Estate Market.

In the one year period till the first quarter of 2021, the residential real estate price index in Saudi Arabia increased by 0.6 percent. Due to the global COVID-19 pandemic, the commercial real estate price index in Saudi Arabia decreased by 0.4 percent during the same period.

Saudi Arabia Real Estate Price Index: 2023=100: Commercial data was reported at 107.200 2023=100 in Mar 2025. This records a decrease from the previous number of 109.539 2023=100 for Dec 2024. Saudi Arabia Real Estate Price Index: 2023=100: Commercial data is updated quarterly, averaging 96.522 2023=100 from Mar 2021 (Median) to Mar 2025, with 17 observations. The data reached an all-time high of 109.539 2023=100 in Dec 2024 and a record low of 80.914 2023=100 in Jun 2021. Saudi Arabia Real Estate Price Index: 2023=100: Commercial data remains active status in CEIC and is reported by General Authority for Statistics. The data is categorized under Global Database’s Saudi Arabia – Table SA.EB001: Real Estate Price Index: 2023=100.

The Jeddah commercial real estate market exhibits robust growth potential, projected to reach a market size of $2.26 billion in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 9.88% from 2025 to 2033. This expansion is fueled by several key drivers. Significant investments in infrastructure development, including transportation improvements and urban renewal projects, are attracting both domestic and international businesses. Furthermore, the burgeoning tourism sector, driven by initiatives like the Red Sea Project and NEOM, contributes to increased demand for office, retail, and hospitality spaces. Government initiatives aimed at diversifying the Saudi Arabian economy away from oil dependence also play a crucial role, stimulating private sector investment and creating a favorable environment for commercial real estate development. The market's segmentation is likely diverse, encompassing high-end office towers in central Jeddah, retail spaces in burgeoning commercial districts, and logistics facilities catering to the growing trade and e-commerce sectors. Key players such as Makkah Construction and Development Company, Jabal Omar Development Company, and the Binladin Group are shaping the market landscape through large-scale projects and developments. However, potential market restraints could include fluctuating global economic conditions and the availability of skilled labor. The forecast period (2025-2033) anticipates sustained growth, with projected increases in both market size and investment activity. This positive outlook is supported by a continuation of the current economic diversification efforts and ongoing infrastructural improvements within Jeddah. The ongoing development of mega-projects like the Red Sea Development and the expansion of King Abdulaziz International Airport will further drive demand. Competitive landscape analysis reveals a mix of established players and emerging developers, suggesting a dynamic and increasingly competitive market. While precise segment-specific data remains unavailable, it's reasonable to infer significant growth across all segments given the overall market expansion. Ongoing monitoring of economic indicators, government policies, and competitor activities will be essential for a comprehensive understanding of future market trends. Key drivers for this market are: Increasing Spending on the Commercial Construction. Potential restraints include: Materials and Labor Shortages. Notable trends are: The Office and Retail Industry is Expected to Dominate the Market.

Saudi Arabia Real Estate Price Index: 2014=100: Riyadh: Commercial data was reported at 74.420 2014=100 in Mar 2019. This records an increase from the previous number of 64.700 2014=100 for Dec 2018. Saudi Arabia Real Estate Price Index: 2014=100: Riyadh: Commercial data is updated quarterly, averaging 74.500 2014=100 from Mar 2015 (Median) to Mar 2019, with 17 observations. The data reached an all-time high of 95.100 2014=100 in Mar 2015 and a record low of 64.700 2014=100 in Dec 2018. Saudi Arabia Real Estate Price Index: 2014=100: Riyadh: Commercial data remains active status in CEIC and is reported by General Authority for Statistics. The data is categorized under Global Database’s Saudi Arabia – Table SA.I019: Real Estate Price Index: 2014=100.

Real Estate Market in Saudi Arabia is Segmented by Residential Estate (Apartments, Villas) and Commercial Real Estate (Offices, Retail, Hospitality, Others). The Report Offers Market Size and Forecasts for the Real Estate Market in Saudi Arabia in Value (USD) for the Above Segments.

Global firms and government-backed initiatives are increasing the demand for high-quality, energy-efficient office buildings, accelerating the development of smart, sustainable office projects. According to the analyst from Verified Market Research, the Saudi Arabia office real estate market is estimated to reach a valuation of USD 19.93 Million over the 2032 forecast period, subjugating around USD 10 Million in 2024Developments such as NEOM, The Line, and Red Sea Global are attracting businesses, resulting in increased demand for office space. It enables the market to grow at a CAGR of 9% from 2026 to 2032.

The Saudi Arabia office real estate market is expected to grow at a CAGR of 8.12% from 2023 to 2033. The market size is projected to reach XX million by 2033. The growth of the market can be attributed to the increasing demand for office space from various sectors such as financial services, IT, and government. The government's focus on developing smart cities and economic diversification is also expected to drive the growth of the market. Riyadh, Jeddah, and Makkah are the key cities in the Saudi Arabian office real estate market. The majority of the office space in Saudi Arabia is concentrated in these cities. The increasing demand for office space in these cities is due to the presence of large corporations, government agencies, and financial institutions. Other cities in Saudi Arabia are also expected to witness growth in the office real estate market due to the government's focus on developing these cities. Some notable trends in the Saudi Arabian office real estate market include the increasing demand for flexible office spaces, the adoption of smart building technology, and the growing popularity of co-working spaces. The key players in the Saudi Arabian office real estate market include Nai Saudi Arabia, Kingdom Holding Company, SEDCO Development, Dar Al Arkan, AlOul, Abdul Latif Jameel, JLL Riyadh, Century 21 Saudi Arabia, and Saudi Real Estate Company. Recent developments include: November 2022: Arabian Centres Company, Saudi Arabia's largest mall operator, has agreed to sell non-core assets worth 2 billion Saudi riyals to Adeer Real Estate. A study determined that the assets were best suited for residential or office space development rather than supporting the mall operator's strategic priorities of developing lifestyle destinations., October 2022: Ajdan Real Estate Development Company announced that it has signed a contract with Al-Muhaidib Group to develop, market, and operate the 250 million Saudi riyals (USD 66.5 million) Bayfront commercial project on the east coast of Al-Khobar. The Bayfront will be located on the northern part of Al-Khobar's beach, spanning over 100,000 square metres (sqm) from the shore and a 1,600 sqm island.. Key drivers for this market are: Increasing geriatric population, Growing cases of chronic disease among senior citizens. Potential restraints include: High cost of elderly care services, Lack of skilled staff. Notable trends are: Increasing Demand for Office Spaces in Key Commercial Cities.

The Jeddah commercial real estate market, valued at $2.26 billion in 2025, is projected to experience robust growth, driven by a Compound Annual Growth Rate (CAGR) of 9.88% from 2025 to 2033. This expansion is fueled by several key factors. Firstly, significant infrastructure development projects in Jeddah, including those related to Vision 2030, are attracting substantial foreign and domestic investment, boosting demand for office, retail, and hospitality spaces. The growing tourism sector, fueled by mega-projects like the Red Sea Development, further contributes to the demand for commercial properties. Secondly, the burgeoning population and a thriving economy are creating a strong need for commercial spaces across various segments. The increasing number of multinational companies establishing a presence in Jeddah contributes to the high demand for office spaces. Finally, government initiatives aimed at diversifying the Saudi Arabian economy are creating a positive business environment, encouraging further investment in the commercial real estate sector. These factors collectively paint a picture of a dynamic and expanding market. However, the market also faces certain challenges. Competition among developers could lead to price fluctuations, potentially affecting profitability. The global economic climate and any unforeseen geopolitical events may influence investor confidence and impact market growth. Furthermore, the sustained availability of skilled labor and construction materials will be critical to meeting the projected demand. Despite these potential restraints, the long-term outlook remains positive, given the strong underlying economic fundamentals and strategic government investments in Jeddah's development, signaling substantial opportunities for investors and developers in the coming years. Careful consideration of these factors is crucial for successful navigation of the Jeddah commercial real estate market. Recent developments include: November 2023: Saudi Ports Authority 'Mawani' and CMA CGM launched a new logistics park in Jeddah Islamic Port with a total area of more than 130,000 square meters and an investment value exceeding SAR 487 million (USD 12.9 million) over the project's duration., February 2023: The Saudi Ports Authority signed an agreement worth SAR 1 billion (USD 0.26 billion) with the Jeddah Chamber of Commerce and Industry to develop an integrated logistics area in the Al-Khumra region south of Jeddah. The integrated logistics zone spans 3 million sq. m divided into three sub-areas of shared modular warehouses, single warehouses, large yards, and on-demand warehouses.. Key drivers for this market are: Increasing Spending on the Commercial Construction. Potential restraints include: Increasing Spending on the Commercial Construction. Notable trends are: The Office and Retail Industry is Expected to Dominate the Market.

The Saudi Arabian real estate brokerage market, valued at approximately $8.14 billion in 2025, is experiencing robust growth, projected to expand at a Compound Annual Growth Rate (CAGR) of 6.80% from 2025 to 2033. This expansion is fueled by several key drivers. Significant government investments in infrastructure projects like Neom and the Red Sea Project are creating substantial demand for both residential and commercial properties. Furthermore, a burgeoning population and increasing urbanization are driving the need for real estate services. The rise of PropTech and online platforms is streamlining transactions and enhancing market transparency. While challenges such as fluctuating oil prices and potential regulatory changes exist, the long-term outlook remains positive, driven by Vision 2030's ambitious plans to diversify the Saudi economy and boost the private sector, creating more opportunities in the real estate market. The market is segmented by property type (residential and non-residential) and services offered (sales and rental), with major players such as JLL, CBRE Group, Colliers International, and Savills dominating the landscape alongside prominent local firms. The residential segment is likely to be the larger contributor due to population growth and government initiatives focused on affordable housing. The sales segment is expected to retain significant market share due to the volume of new construction and related transactions. Continued growth in foreign direct investment and government support for the real estate sector will likely contribute further to market expansion over the forecast period. The competitive landscape is characterized by a mix of international and domestic players, each vying for market share through diverse strategies. International firms leverage their global expertise and networks, while local firms benefit from deep market knowledge and established relationships. The future will likely see increased consolidation and mergers as firms seek economies of scale and broader reach. Furthermore, technological advancements will continue to reshape the industry, with a growing focus on data analytics, AI-driven property valuations, and virtual tours. This dynamic interplay of market forces, government initiatives, and technological progress is shaping the future of the Saudi Arabian real estate brokerage market, presenting both opportunities and challenges for market participants. Recent developments include: June 2024: Abdullah Al-Hammad, CEO of the Real Estate General Authority (REGA), announced that Saudi Arabia was set to unveil its inaugural legislation for facility management within the real estate industry in Q1 of 2024. This legislation enhances the industry's reliability and investment appeal by establishing clear regulations. Al-Hammad emphasized the pivotal role of the Real Estate Brokerage Law in advancing the industry. He highlighted its functions in modernizing operations, enhancing governance, and positioning real estate as a transparent and reliable investment avenue., January 2023: The Saudi Real Estate Authority reported an overwhelming response to the new Real Estate Brokerage Law, with more than 89,000 license requests flooding through its electronic services within two days of its enactment. Of these requests, the authority swiftly processed and granted over 72,000 licenses to individual practitioners, while an additional 17,100 licenses were allocated to establishments.. Key drivers for this market are: Economic Diversification Efforts, Regulatory Reforms and Foreign Investment. Potential restraints include: Economic Diversification Efforts, Regulatory Reforms and Foreign Investment. Notable trends are: Government-led Initiatives Driving the Saudi Arabian Real Estate Brokerage Market.

Saudi Arabia GDP: Producer Values: Finance, Insurance, Real Estate and Business Services data was reported at 153,052.000 SAR mn in Dec 2024. This records an increase from the previous number of 139,483.000 SAR mn for Sep 2024. Saudi Arabia GDP: Producer Values: Finance, Insurance, Real Estate and Business Services data is updated quarterly, averaging 71,549.000 SAR mn from Mar 2003 (Median) to Dec 2024, with 88 observations. The data reached an all-time high of 153,052.000 SAR mn in Dec 2024 and a record low of 21,016.000 SAR mn in Sep 2003. Saudi Arabia GDP: Producer Values: Finance, Insurance, Real Estate and Business Services data remains active status in CEIC and is reported by General Authority for Statistics. The data is categorized under Global Database’s Saudi Arabia – Table SA.A019: GDP: by Industry: Current Price.

The Saudi Arabian real estate market is projected to witness significant growth in the coming years, with a market size estimated at 69.51 million in 2023 and a projected CAGR of 8.00% from 2025 to 2033. This growth is primarily driven by the government's Vision 2030 plan, which aims to diversify the economy and reduce the country's reliance on oil. The plan has led to a surge in infrastructure development, tourism, and foreign investment, all of which have contributed to the growth of the real estate sector. Key trends in the Saudi real estate market include increasing demand for residential properties, particularly apartments and villas, as well as growing interest in commercial real estate, such as offices, retail spaces, and hospitality. The market is also seeing a rise in the adoption of smart home technologies and sustainable building practices. However, the market faces some challenges, including a shortage of affordable housing, rising interest rates, and geopolitical uncertainties. Major players in the Saudi real estate market include Nai Saudi Arabia, Emaar, Ewaan Co. Ltd., and Jabal Omar, among others. Recent developments include: May 2023, The National Security Services Company (SAFE), which leads the transformation of the local security services sector, has signed an acquisition agreement to acquire ABANA Enterprises Group Company's assets connected to the transit of cash and valuable goods. ABANA Enterprises Group Company is at the forefront of providing such services in the Kingdom. The acquisition of ABANA Enterprises Group Company's assets connected to the transit of cash and valuable goods will help SAFE achieve its primary goal of providing the most advanced security solutions and services for customers., July 2022, SEDCO Capital REIT Fund's board has approved acquiring two income-generating real estate assets worth SR700 million (USD 187 million), located in Riyadh and Jeddah. This acquisition will be covered by new units and by using banking facilities in accordance with the Fund's terms and conditions, according to a bourse filing. The Fund expects that this acquisition will positively impact its overall performance, as it seeks to add value to its portfolio, as well as its unitholders.. Key drivers for this market are: 4., Growth in Commercial Activities and Increased Competition4.; Increasing Demand for Affordable Housing Units. Potential restraints include: 4., Lack of Housing Spaces and Mortgage Regulation can Create Challenges. Notable trends are: The Residential Sector Sustains Country's Real Estate Market.