Saudi Arabia Real Estate Market Set to Surge to USD 132.65 Billion by 2033 at a 7.0% CAGR

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 estimates the market to reach USD 132.65 Billion by 2033, exhibiting a CAGR of 7.0% during 2025-2033.

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Growth Factors in the Saudi Arabia Real Estate Market

● Vision 2030 Initiatives

Saudi Arabia's Vision 2030 is a huge disruptive force transforming the real estate market by diversifying the economy away from its heavy reliance on oil. The Plan promotes large mega-projects like NEOM, which is billed as a mega futuristic smart city, and Qiddiya, an entertainment city, similar to Disneyland. Mega-projects create significant demand for housing, commercial and hospitality space which attracts local and global investment. NEOM intends to house millions which has created a need for developers to build residential housing complexes and commercial centers. The Vision 2030 plan to increase home ownership levels to 70% by 2030 resulted in a historical program called Sakani which offers affordable housing and housing finance programs and has helped stimulate growth in the real estate market and created opportunities for first-time buyers in accessing the housing market.

● Rapid Urbanization and Population Growth

Real estate demand is significantly boosted by demographics in Saudi Arabia, which is faced with a growing population expected to exceed 40 million by 2030, and increasing urbanization. Over 60% of the population is under the age of 35, thereby intensifying the demand for housing reflective of the lifestyles of young professionals and families. Urban migration, predominantly within cities to economic centers, is fuelling a need for apartments and mixed-use developments. For instance, Riyadh's population is estimated to approach 10 million by 2030, and many developers are focusing exclusively on high-rise apartment complexes, addressing the growing demand and influx of people. Over a 20 to 30-year timeframe, the demand for residential and commercial property will be durable as demographic activity will continue to evolve the urban fabric to accommodate behaviours and lifestyle delivery.

● Foreign Investment and Regulatory Reforms

The advance of Saudi foreign investment promotion greatly accelerated the real estate market. Accompanying reforms enabling foreign ownership of properties and a smoother investment process through the Saudi Arabian General Investment Authority (SAGIA), has allowed a greater market accessibility to investors. For example, in 2024, there were agreements made with U.S. based developments such as K. Hovnanian ME to develop integrated residential communities based on prospective international developers. The foreign investment reforms in conjunction with tax incentives and special economic zones are incentivizing characteristics for global developers to consider investing in projects; a great example is the King Abdullah Financial District. Promoting international and foreign interest is a step towards engaging in economic diversification and providing new and vibrant real estate opportunities in both the residential and commercially based segmented markets.

Key Trends in the Saudi Arabia Real Estate Market

● Rise of Mixed-Use Developments

Locally, mixed-use developments consist of residential, commercial, and recreational space and are popular in Saudi Arabia as it is convenient and suits refined lifestyles. Diriyah Gate is the first project in the Kingdom that pairs heritage with contemporary living; a place that provides a community focal point in terms of residential, office and cultural attractions all in one destination. Mixed-use developments are suited for professionals and young families because it represents an upscale community that has extensive walkability, readily accessible entertainment, and retail spaces. An example of this is the Red Sea Project; where high-end and eco-friendly resorts are integrated with luxury residences to attract both locals and visitors. This trend shows a larger shift towards vibrant, self-contained urban realms that support community living, and supports the objectives of the urban development features of Vision 2030.

● Adoption of Smart City Technologies

Smart city technologies are revolutionizing the real estate market in Saudi Arabia, bringing greater efficiency and sustainability. Projects like NEOM will use data-driven planning and the IOT to deliver energy-efficient buildings and more streamlined property transactions. Digital platforms like Saudi Property, and Aqarmap already allow buyers to virtually explore properties, and provide 3D tours and proprietary market analysis. Increased transparency and reduced uncertainty in transactions will improve market efficiency and appeal to next-gen investors who are financially literate. Additionally, automated lighting and security systems are becoming the norm in new residential developments, attracting younger buyers and aligning with emerging trends in urban living towards more sustainable and tech-centric homes.

● Focus on Sustainable Building Practices

Sustainability is rapidly becoming a priority in the Saudi Arabian real estate market, a necessity driven by global environmental concerns and Vision 2030's commitment to sustainable development. Developers are beginning to adopt green building practices, providing materials that are energy-efficient, and incorporating renewable energy systems into the project as a response to consumer demands for sustainable real estate properties. A clear example of this can be seen with the King Salman Park project, which creates a sustainable urban atmosphere by incorporating green spaces and eco-conscious design. Although there has always been a level of government regulation regarding energy-efficient buildings in Saudi Arabia, the Turkish government has been increasingly incentivizing environmentally responsible development, thus appealing to environmentally sensitive investors and home purchaser. This transformation in the Saudi Arabian real estate market helps build overall market value for the long term, and, in many ways, positions Saudi Arabia to be the regional leader in sustainable real estate development.

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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 lasting expansion, emerging from Vision 2030's transformative projects with continuing population expansion and youth. The mega-project from Vision 2030, NEOM, and events like EXPO 2030 and FIFA World Cup 2034 will create new urban and tourism hubs to spur demand for residential, commercial, and hospitality property. Challenges like high land and development costs and economic uncertainty linked to oil prices will always be present, yet there is government support to mitigate this through affordable housing and promotion of foreign investment. Sustainability and smart technology will remain a focus and add desirability and attractiveness to the real estate market overall and position Saudi Arabia as a global destination in real estate. As reforms continue to unravel over the next two decades, the Saudi Arabia real estate sector is in a position to scale up growth patterns with opportunity for a wide range of investors and residents.

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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