Saudi Arabia Commercial Real Estate Market is Booming with a CAGR of 3.22% by 2034

Saudi Arabia Commercial Real Estate Market Overview

Market Size in 2025: USD 69.76 Billion

Market Size in 2034: USD 92.76 Billion

Market Growth Rate 2026-2034: 3.22%

According to IMARC Group's latest research publication, "Saudi Arabia Commercial Real Estate Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034", The Saudi Arabia commercial real estate market size was valued at USD 69.76 Billion in 2025. Looking forward, IMARC Group estimates the market to reach USD 92.76 Billion by 2034, exhibiting a CAGR of 3.22% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia Commercial Real Estate Market

● AI-powered valuation models analyze historical transaction data and market trends to provide data-driven property assessments, helping investors identify underpriced assets and make more informed investment decisions across major Saudi cities.

● Machine learning algorithms process real-time market data to generate forward-looking forecasts by modeling economic diversification impacts, population growth patterns, and mega-project developments like NEOM and the Red Sea Project.

● AI-driven property management systems optimize energy consumption through IoT-enabled buildings, reducing operational costs while supporting Saudi Arabia's Green Initiative and sustainability goals aligned with Vision 2030.

● Blockchain-powered land registry systems integrated with AI streamline real estate transactions, enhancing transparency and cutting vacancy rates by up to 4 percentage points through improved lease management.

● Predictive analytics platforms identify emerging investment opportunities in tier-2 cities by analyzing visitor flows, infrastructure development timelines, and demographic shifts, enabling early-mover advantages for developers.

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How Vision 2030 is Transforming Saudi Arabia Commercial Real Estate Industry

Saudi Arabia's Vision 2030 is fundamentally reshaping the commercial real estate landscape by driving economic diversification beyond oil dependency and fostering unprecedented investment in non-oil sectors. The initiative catalyzes demand for modern office spaces, retail centers, logistics hubs, and hospitality facilities through approximately USD 1.3 trillion in infrastructure investments. Government-backed programs including the National Industrial Development and Logistics Program are attracting foreign direct investment, with over 500 multinational companies establishing regional headquarters since 2021, creating sustained demand for Grade A office spaces. Landmark mega-projects such as NEOM, The Red Sea Project, Qiddiya, and the King Abdullah Financial District are revolutionizing urban development by integrating smart city technologies, sustainable building practices, and mixed-use communities.

Saudi Arabia Commercial Real Estate Market Trends & Drivers:

Saudi Arabia's commercial real estate market is experiencing robust growth driven by comprehensive economic reforms under Vision 2030 that prioritize diversification, infrastructure development, and foreign investment attraction. The government's proactive regulatory modernization, including the 2025 approval of the Law of Real Estate Ownership by Non-Saudis which takes effect in January 2026, enables foreign individuals and entities to purchase property in designated zones across major cities like Riyadh and Jeddah, significantly expanding investor participation and market liquidity. Strategic initiatives such as the Real Estate General Authority's (REGA) digital transformation through platforms like "Saudi Properties" enhance transparency and streamline ownership processes, building institutional confidence.

The unprecedented expansion of mega-projects is reshaping commercial real estate fundamentals across multiple segments. NEOM's ambitious development including The Line's car-free urban environment, the King Abdullah Financial District's premium office towers, and Qiddiya's entertainment complexes are attracting substantial international capital and creating diverse commercial opportunities. Religious tourism infrastructure enhancements in Makkah and Madinah, combined with rapid growth in non-religious tourism reaching 30 million international visitors in 2024, are driving hospitality sector absorption and retail space demand. The logistics and industrial segment benefits from surging e-commerce activity and the National Transport and Logistics Strategy, with major investments including SAL's SAR 4 billion commitment to establish a 1.5 million+ square meter logistics hub near Riyadh.

Urbanization trends and demographic shifts are fundamentally altering commercial space requirements. Riyadh's residential real estate prices increased 10.7% annually as population growth and domestic migration intensify demand for integrated mixed-use developments combining office, retail, residential, and entertainment components. The shift toward sustainable development is accelerating, with projects like Forbes International Tower achieving the world's first Zero-Carbon registration, prompting widespread adoption of LEED certification, green building standards, and energy-efficient technologies across new developments. The retail sector demonstrates resilience with total sales reaching nearly SAR 116 billion in early 2025, supported by changing consumer preferences and food & beverage market expansion. Enhanced mortgage lending programs, achieving 5.3% growth in H1 2024, along with government homeownership initiatives targeting 70% by 2030, are strengthening overall real estate market fundamentals and creating spillover demand for commercial properties serving expanding residential communities.

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Saudi Arabia Commercial Real Estate Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

● Offices
● Retail
● Industrial
● Logistics
● Multi-family
● Hospitality

Breakup by Region:

● Northern and Central Region
● Western Region
● Eastern Region
● Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Commercial Real Estate Market

● January 2026: The Real Estate General Authority (REGA) launched the "Saudi Properties" digital platform as the official gateway for non-Saudi property ownership, ahead of the new ownership law taking effect in mid-January 2026, streamlining eligibility verification, application processing, and regulatory compliance for foreign investors.

● December 2025: Riyadh authorities implemented a five-year freeze on annual rent increases for residential and commercial leases starting in September, alongside lifting restrictions on 33.24 million square meters west of Riyadh to stabilize costs and expand supply while combating speculation.

● July 2025: The Council of Ministers approved the Law of Real Estate Ownership and Investment by Non-Saudis, replacing the 2000 framework and enabling foreign individuals and entities to own real estate in designated zones across cities like Riyadh and Jeddah, aligned with Vision 2030 objectives.

● February 2025: DataVolt signed an agreement with NEOM to construct a USD 5 billion net-zero AI data center factory, operational by 2028, supporting advanced technology infrastructure critical for smart city development and digital transformation initiatives.

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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