Saudi Arabia’s real estate market has recorded a staggering $29 billion in transactions in the 1st Quarter of 2025.

This growth is fueled by high demand in cities such as Riyadh across the residential, office, and hospitality sectors combined with the development of Vision 2030 projects.

The Premium Residency Program which offers long term residency for foreign investors is also attracting high net worth individuals looking to purchase properties valued at 4 million Saudi Riyals or above.

Saudi Arabia’s Record Real Estate Growth

The Kingdom’s strategic efforts to diversify its economy away from oil dependency have led to a series of regulatory reforms designed to create a more inviting environment for foreign investments. 

As a result, the real estate sector is reaping the benefits of these policy shifts with $29 billion in deals and 93,000 transactions in 1st Quarter of 2025, showcasing promising opportunities across various segments, including residential, commercial, and hospitality properties.

Impact of Premium Residency Program

Launched to attract global talent and investment, the Premium Residency Program offers long-term residency options to foreign nationals, allowing them to own property in Saudi Arabia. 

By late 2024, over 1,200 international investors had already taken advantage of this initiative, signaling a growing interest in the Kingdom’s property market.

The program includes a unique category for real estate owners, enabling individuals to purchase residential properties valued at a minimum of SAR 4 million (approximately $1.07 million).

Changing Buyer Demographics

The introduction of the Premium Residency Program is reshaping the demographics of property buyers in Saudi Arabia, particularly in major cities like Riyadh and Jeddah. 

Developers are responding to this shift by launching high-end residential projects catering to affluent individuals seeking luxury living options. As the demand for premium properties rises, the market is witnessing a significant transformation, aligning with global trends in real estate investment.

Foreign Investment Rights

The program provides substantial property rights to foreign investors, although there are specific restrictions regarding ownership in holy cities such as Makkah and Madinah. 

While freehold ownership is not permitted in these locations, investors can still secure 99-year usufruct rights, allowing them to benefit from property investments in these historically significant areas.

Saudi Arabia’s Regulatory Reforms 

Saudi Arabia’s commitment to economic diversification is evident through a series of regulatory reforms designed to attract foreign capital. The real estate sector, in particular, has benefited from these policy changes, which aim to create a more investor-friendly environment.

Key Regulatory Changes

• Relaxation of Ownership Rules: Recent amendments to foreign ownership laws have made it easier for international investors to engage with the Saudi property market. Notably, foreign investors can now own shares in listed companies that manage real estate in the holy cities of Makkah and Madinah, albeit with a cap on ownership.

• Support for Listed Companies: The introduction of a Royal Decree has enabled foreign investors to participate in the ownership of companies that own real estate in key religious cities, fostering greater investment opportunities.

• Sustainable Development Measures: To ensure long-term stability in the real estate sector, the Saudi government is implementing measures such as land supply expansion and white land taxes. These initiatives aim to balance growth with sustainability, protecting consumers from potential price surges.

Investment Avenues in Saudi Arabia

Diverse Opportunities for Foreign Investors

The Saudi real estate market offers a variety of avenues for foreign investment. Key opportunities include:

• Ownership of Business Premises: Foreign-licensed businesses can own their operational spaces, facilitating smoother operations.
• Private Residences: Residents are permitted to own their homes, contributing to the overall housing demand.
• High-Value Investments: Investors can engage in real estate development projects worth at least SAR 30 million, with completion timelines of five years.
• Real Estate Funds: Investment in Capital Market Authority-licensed real estate funds provides a pathway to diversify portfolios.
• Listed Companies: Foreigners can invest in publicly traded companies that own real estate assets, enhancing market participation.

Special Privileges for GCC Nationals

Gulf Cooperation Council (GCC) nationals enjoy unique advantages under Saudi law, as they are generally allowed to own real estate without being classified as foreigners. However, restrictions still apply in Makkah and Madinah, where ownership regulations remain stringent.

Market Segments with High Potential

Mid-Income Housing Opportunities

Experts have identified significant potential in the mid-income housing segment, which remains relatively underserved compared to the luxury and government-subsidized affordable housing markets. 

With a growing population and increasing urbanization, the demand for quality housing options for middle-income earners is expected to rise, creating a lucrative niche for developers.

Office Space Demand

The office market in Saudi Arabia is also experiencing notable growth, particularly in the demand for premium office spaces. 

While high-end office developments, including Servcrop’s new office in KAFD, dominate the market, there is a need for quality, cost-effective office solutions catering to small and medium-sized enterprises (SMEs). This is an opportunity for investors to meet the evolving demands of the business sector.

Hospitality Sector Growth

The hospitality sector is poised for substantial growth, with the Kingdom gearing up to host major global events such as Expo 2030 and the FIFA World Cup 2034. 

The influx of tourists and international visitors will drive demand for hotels, resorts, and related services, making this sector particularly attractive for investors seeking to capitalize on upcoming opportunities.

Upcoming Mega Events in Saudi Arabia

Saudi Arabia’s successful bid to host major international events has further bolstered investor confidence in the real estate market. Events such as the FIFA World Cup 2034 and Expo 2030 are anticipated to attract millions of visitors, creating substantial opportunities across various property sectors.

Economic Benefits of Mega-Events

• Increased Visibility: Hosting prestigious global events enhances Saudi Arabia’s visibility on the world stage, attracting not just tourists but also potential investors looking to capitalize on the burgeoning real estate market.

• Infrastructure Development: The preparations for these mega-events are prompting significant investments in infrastructure, including transportation, hospitality, and entertainment facilities. This, in turn, will create a ripple effect, benefiting the real estate sector.

• Long-Term Growth Prospects: The anticipated influx of visitors and investors is expected to stimulate long-term growth in the real estate market, making it an attractive proposition for stakeholders.

Investment Pathways for Foreign Investors 

Foreign investors have multiple avenues to engage with Saudi Arabia’s real estate market, thanks to the Premium Residency Program and other regulatory changes.

Available Investment Options

• Property Ownership: Foreigners can own residential properties, provided they meet the minimum investment threshold. This particularly appeals to high-net-worth individuals seeking to establish a foothold in the kingdom.

• Real Estate Funds: Investing in Capital Market Authority-licensed real estate funds offers a way for foreign investors to gain exposure to the market without directly purchasing property.

• Corporate Investments: Foreign companies can invest in Saudi real estate by acquiring shares in listed companies that own or manage properties, further diversifying their investment portfolios.

Saudi Arabia’s Real Estate Boom

Saudi Arabia’s real estate market is experiencing an extraordinary boom, driven by the Premium Residency Program and significant regulatory reforms. With $29 billion in transactions recorded in early 2025, the sector is poised for continued growth and innovation. 

As foreign investment flows into the market, opportunities abound across various segments, including residential, commercial, and hospitality.

Planned Real Estate Projects in Riyadh

Dar Global and Mouawad’s Villa Project

Dar Global, an international real estate developer, has partnered with luxury jeweler Mouawad to unveil a $235 Million Villa Project in North Riyadh, close to the World Expo 2030 site. 

The development will include 200 exquisite villas, similar to the prestigious Bulgari Residences, and aims to boost Riyadh’s reputation as a top luxury destination. 

Scheduled for completion in 2026, this project represents Dar Global’s debut in Saudi Arabia and Mouawad’s entry into the real estate market.

The Avenues Riyadh

The highly anticipated Avenues Riyadh project, valued at $4.58 billion, has reached 44.5% completion and is scheduled to open in early 2026. 

Situated in northern Riyadh, this iconic development, inspired by Salmani architecture, will cover 390,000 square meters and host one of the Middle East’s largest malls. 

It will also feature three luxury hotel towers: Waldorf Astoria, Canopy by Hilton, and Conrad. This project supports Saudi Vision 2030’s goal of making Saudi Arabia a leading global tourist destination.

Boulevard Business Park

Saudi Arabia’s General Entertainment Authority has unveiled plans for a $266 million business park at Boulevard City in Riyadh. 

Named the “Boulevard Business Park,” this new project will consist of nine buildings with views of the Boulevard City Fountain, an outdoor art gallery, and a suspended pool. 

The initiative aims to promote creativity, innovation, and support for entrepreneurs and businesses, in line with Saudi Vision 2030.

New Murabba

The most recent video demonstrates significant advancements in the construction of the New Murabba, the largest contemporary downtown in northwest Riyadh. 

A remarkable 5 million cubic tonnes of soil have already been removed, and the project is making notable headway. 

This ambitious venture covers an area of 19 square kilometers and will include the distinctive cube-shaped Mukaab at its heart, capable of holding 20 Empire State Buildings.

King Salman Park

King Salman Park, the largest urban park in the world, is scheduled to open in 2024, covering a total area of 16 square kilometers. 

The park includes 11 square kilometers of greenery and water features in the heart of Riyadh. 

Its major attractions will be a Royal Arts Complex, an equestrian center, an 850,000-square-meter Royal golf course, and the city’s first skydiving center. 

In addition, the park will offer over 2,000 hotel rooms and aims to elevate the quality of life in the city, following the goals of Saudi Vision 2030, thereby improving Riyadh’s global ranking.

Riyadh Rise Tower

Saudi Arabia Holding Co. has unveiled its plans for the Rise Tower, which is set to become the world’s tallest skyscraper in Riyadh, surpassing even the renowned Burj Khalifa. The unveiling of Rise Tower’s plans is a significant component of the broader North Pole Project in Riyadh.

Rise Tower is anticipated to exceed 828 meters to outshine the Burj Khalifa. There are speculations that Rise Tower might ascend to a staggering 2 kilometers, doubling the Burj Khalifa’s current height.

With these transformative projects, Riyadh, one of the world’s top 15 fastest-growing cities, is transforming into a city known for its accessibility and quality of life to become among the world’s top 10 cities with an investment of $1 trillion over the next seven years.

Keep Reading: Dar Global and Mouawad Announce $235 Million Luxury Villa Project in Riyadh