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.

The Report Covers Residential Real Estate Market in Saudi Arabia is Segmented by Type (condominiums and Apartments and Villas and Landed Houses) and Key Cities (Riyadh, Jeddah, Dammam, and Rest of Saudi Arabia). The Report Offers the Saudi Arabia Residential Real Estate Market Size in Value (USD) for all the Above Segments.

The forecasted value of the real estate industry in Saudi Arabia for the year 2019 was about ***** billion U.S. dollars. The construction market was undergoing a comeback after a period of economic volatility that followed the collapse of the Dubai real estate market.

Evaluate demand-side economics in the Saudi Arabia Real Estate Sector, influenced by Vision 2030 initiatives and urban development projects.

Housing Index in Saudi Arabia increased to 104.90 points in the first quarter of 2025 from 104.20 points in the fourth quarter of 2024. This dataset provides - Saudi Arabia Housing Index- actual values, historical data, forecast, chart, statistics, economic calendar and news.

In 2023, the KSA Real Estate Market reached a value of USD 123.9 million, and it is projected to surge to USD 212.3 billion by 2030.

Residential Real Estate Market Outlook

According to our latest research for 2024, the global residential real estate market size is valued at USD 9.3 trillion, with a robust compound annual growth rate (CAGR) of 5.7% expected through the forecast period. By 2033, the market is projected to reach an impressive USD 15.3 trillion, driven by factors such as urbanization, rising disposable incomes, and shifting consumer preferences for modern living spaces. This strong growth trajectory is underpinned by ongoing demographic changes, technological advancements in property management, and evolving investment trends, as highlighted in our comprehensive 2025 industry analysis.

A primary growth factor for the residential real estate market is the accelerating pace of urbanization worldwide. As more individuals and families migrate to urban centers in search of better employment opportunities, education, and improved quality of life, the demand for residential properties—particularly apartments and condominiums—has surged. This migration is especially pronounced in emerging economies within Asia Pacific and Africa, where urban populations are expanding at unprecedented rates. Governments and private developers are responding by investing heavily in infrastructure and large-scale housing projects, further stimulating market growth. Additionally, the proliferation of smart city initiatives and integrated township developments is transforming the residential landscape, making it more attractive for both end-users and investors.

Another significant driver is the evolution of consumer preferences and lifestyle trends. Modern buyers and renters increasingly seek properties that offer not just shelter but also amenities, security, and community-centric environments. The shift toward remote work has also redefined what residents prioritize, with home offices, green spaces, and high-speed connectivity becoming essential features. This has led to a rise in demand for villas, townhouses, and luxury condominiums, particularly in suburban and peri-urban locations. Furthermore, the growth of the rental market, fueled by changing attitudes toward homeownership among younger generations, is reshaping the market dynamics. Flexible leasing options, co-living spaces, and technology-enabled property management solutions are becoming more prevalent, catering to the evolving needs of millennials and Generation Z.

Financial factors and supportive government policies play a pivotal role in the expansion of the residential real estate sector. Low interest rates, favorable mortgage terms, and tax incentives for first-time homebuyers have made property acquisition more accessible to a wider demographic. In several countries, governments are also implementing affordable housing schemes to bridge the gap between demand and supply, particularly in high-density urban areas. These initiatives not only stimulate construction activity but also attract institutional investors looking for stable long-term returns. The influx of foreign direct investment (FDI) into residential projects, especially in developing regions, is another catalyst driving market growth. Collectively, these factors create a conducive environment for sustained expansion in the residential real estate market.

From a regional perspective, Asia Pacific continues to dominate the residential real estate market, accounting for the largest share in 2024, followed by North America and Europe. Rapid population growth, increasing urbanization, and rising middle-class incomes in countries such as China, India, and Southeast Asian nations are propelling the market forward. North America remains a key player, supported by a strong economy, high homeownership rates, and technological innovation in property transactions. Meanwhile, Europe is witnessing steady growth driven by urban regeneration projects and immigration trends. The Middle East & Africa and Latin America are also emerging as promising markets, thanks to infrastructure investments and favorable demographic profiles. These regional dynamics highlight the global nature of the residential real estate sector and its resilience in the face of economic and geopolitical uncertainties.

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.

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.

The real estate transaction value in the 'Residential Real Estate Transactions' segment of the real estate market in Saudi Arabia was forecast to continuously increase between 2024 and 2029 by in total *** billion U.S. dollars (+*** percent). After the eleventh consecutive increasing year, the real estate transaction value is estimated to reach ***** billion U.S. dollars and therefore a new peak in 2029. Notably, the real estate transaction value of the 'Residential Real Estate Transactions' segment of the real estate market was continuously increasing over the past years.Find further information concerning the real estate transaction value in the 'Residential Real Estate Transactions' segment of the real estate market in France and the real estate transaction value in the real estate market in Nicaragua.The Statista Market Insights cover a broad range of additional markets.

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.

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

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).

The Saudi Arabia Luxury Residential Real Estate Market Report is Segmented by Type (apartments and Condominiums and Villas and Landed Houses) and by Key Cities (Riyadh, Jeddah, Makkah, Dammam Metropolitan Area (DMA), and Other Cities). The Report Offers Market Size and Forecasts for the Saudi Arabian Luxury Residential Real Estate Market in Value (USD) for all the Above Segments.

Saudi Arabia Residential Real Estate Market was valued at USD 42 Billion in 2024 and is expected to reach USD 66 Billion by 2030 with a CAGR of 7.91%.

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.

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 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.

Explore the Saudi Arabia Real Estate Market trends, size, share, growth, outlook, and forecast. Get industry analysis, demand insights, and future projections.

The Saudi Arabia Residential Real Estate Market size was valued at USD 69.8 Billion in 2024 and is anticipated to reach USD 98.4 Billion by 2032, growing at a CAGR of 4.7% from 2026 to 2032.

Key Market Drivers:

Sakani Program: The Sakani program has provided housing solutions and financing options to over 1.2 million families, facilitating access to affordable housing and stimulating market activity. Economic Diversification: The focus on diversifying the economy beyond oil is leading to increased investments in infrastructure projects, enhancing connectivity and boosting property values in residential areas. Increased GDP Contribution: The real estate sector's contribution to Saudi Arabia's GDP reached 5.9% in the fourth quarter of 2023, highlighting its importance as a driver of economic growth and stability in the residential market.