Saudi Arabia’s residential real estate market reached a staggering $32 billion in sales last year, according to Deloitte’s latest report.
This growth is driven by Vision 2030 economic reforms, major events like Riyadh EXPO 2030 and the FIFA World Cup 2034, and Saudi gigaprojects, including NEOM, Red Sea, and Qiddiya.
The report also highlighted strong expected growth through 2025 across office, hospitality, retail, and logistics sectors.
Saudi Arabia’s Residential Real Estate Boom
The Kingdom of Saudi Arabia has witnessed an unprecedented increase in its residential real estate market, with transactions reaching a remarkable $32 billion in the past year.
This monumental growth is a testament to the nation’s ambitious Vision 2030 reform agenda and its unwavering commitment to economic diversification.
This optimistic outlook is fueled by a combination of factors, including major international events, giga-projects, and strategic government initiatives. Let’s delve deeper into the various aspects of this booming market and explore the driving forces behind its success.
Vision 2030
Transforming the Economic Landscape
Saudi Arabia’s Vision 2030 has emerged as a pivotal force in reshaping the nation’s economic landscape. This comprehensive reform plan aims to reduce the Kingdom’s dependence on oil, diversify its economy, and create new opportunities across various sectors.
The real estate market has been a significant beneficiary of this visionary plan, experiencing a surge in investment and development activities.
Attracting Foreign Direct Investment
One of the key objectives of Vision 2030 is to attract substantial foreign direct investment (FDI) into the Kingdom. The National Investment Strategy has set an ambitious target of reaching SR388 billion ($103.4 billion) in FDI inflows by 2030.
This represents a compound annual growth rate (CAGR) of 22% from the 2023 figure of SR95.9 billion ($25.5 billion). The real estate sector is poised to play a crucial role in achieving this goal, offering attractive opportunities for international investors.
Fostering Economic Diversification
By promoting growth in non-oil sectors, Vision 2030 has opened up new avenues for real estate development. The expansion of industries such as tourism, technology, and entertainment has created demand for diverse property types, including residential, commercial, and mixed-use developments.
This diversification has contributed significantly to the robust performance of the real estate market.
Major Events Driving Real Estate Demand
EXPO 2030
The Kingdom’s successful bid to host EXPO 2030 in Riyadh has injected a new wave of excitement into the real estate sector. This prestigious event is expected to attract millions of visitors from around the world, creating a surge in demand for accommodation, office spaces, and retail facilities.
The preparation for EXPO 2030 has already triggered significant investments in infrastructure and real estate development, particularly in the capital city.
FIFA World Cup 2034
The anticipation of hosting the FIFA World Cup 2034 has further fueled the growth of Saudi Arabia’s real estate market. The event will require substantial investments in sports facilities, stadiums, and supporting infrastructure.
Additionally, the influx of tourists and sports enthusiasts during the tournament is expected to drive demand for short-term rentals and hospitality properties, creating new opportunities for real estate investors.
Saudi Arabia has already unveiled several plans for stadiums to host the FIFA World Cup 2034, including King Salman Stadium, New Murabba Stadium, and ROSHN Stadium.
Cultural and Entertainment Initiatives
Saudi Arabia’s focus on developing its cultural and entertainment sectors has had a positive impact on the real estate market.
The introduction of new attractions, museums, and entertainment venues, including Riyadh Season, Jeddah Season, Diriyah Season, Aseer Season and Saudi Summer Season has increased the appeal of various locations for both residential and commercial properties.
This cultural revival has not only enhanced the quality of life for residents but also attracted tourists, further boosting the demand for real estate.
Business Conferences and Exhibitions
The Kingdom’s growing reputation as a business hub has led to an increase in international conferences and exhibitions.
These events, including The PIF’s The Future Investment Initiative, Saudi Arabia’s Future Minerals Forum, Future Aviation Forum, Umrah and Ziyarah Forum, and Cityscape Global Real Estate Forum have created a need for state-of-the-art convention centers, hotels, and office spaces.
The real estate sector has responded by developing world-class facilities to accommodate this growing demand, contributing to the overall market growth.
Giga-Projects
NEOM
NEOM, Saudi Arabia’s ambitious $1 Trillion billion gigaproject, is set to revolutionize the concept of urban living. This futuristic development, spanning 26,500 square kilometers, will feature cutting-edge technology, sustainable infrastructure, and innovative living spaces.
The project has already generated significant interest from international investors and is expected to have a transformative impact on the Kingdom’s real estate market.
NEOM has already opened its iconic Sindalah Island and spans through various regions including THE LINE, Trojena, Oxagon, and several other regions on Red Sea under MAGNA, including Leyja, Epicon, Siranna, Utamo, Norlana, Aquellum, Zardun, Xaynor, Elanan, Gidori, Treyam, and Jaumur.
The Red Sea Project
The Red Sea Project aims to create a world-class luxury tourism destination along Saudi Arabia’s western coast. This development will feature high-end resorts, residential properties, and leisure facilities spread across 28,000 square kilometers.
The Red Sea, one of RSG’s flagship destinations, welcomed its first guests last year, with 5 of its hotels now open and operational. These hotels include Desert Rock Resort, Shebara Resort, Nujuma, A Ritz-Carlton Reserve, Six Sense Southren Dunes, and St. Regis Red Sea Resort.
The project is not only boosting the hospitality sector but also creating new opportunities for real estate investment in previously underdeveloped areas.
Qiddiya
Qiddiya, located near Riyadh, is set to become the Kingdom’s premier entertainment, sports, and cultural destination.
This massive project will include theme parks, sports venues, and residential communities spread across 334 square kilometers, including Aquarabia, Dragon Ball Z Theme Park, Qiddiya Speed Park Track, The Prince Mohammad Bin Salman Stadium, and the Riyadh School of Tourism and Hospitality.
The development of Qiddiya is expected to drive significant growth in the surrounding real estate market, particularly in the residential and hospitality sectors.
Diriyah Gate
The Diriyah project aims to transform the historic town of Diriyah into a world-class cultural and lifestyle destination. This $50 billion development will feature luxury hotels, museums, and traditional-style residences.
The project is not only preserving Saudi Arabia’s rich heritage but also creating unique real estate opportunities in a historically significant location.
Some of the most exciting developments at Diriyah includes Bab Samhan, The First Luxury Collection Hotel, Dolce & Gabbana Boutique and Cafe, Raffles Residences Diriyah, Diriyah Square, Zallal, The Ritz-Carlton Branded Residences, Diriyah Arena, and Wadi Safar.
ROSHN
ROSHN gigaproject epitomizes Saudi Arabia’s ambitious vision for urban transformation and sustainable living. Developed by the Public Investment Fund, this innovative initiative is set to create integrated, smart communities that combine modern infrastructure with eco-friendly design.
The project focuses on blending residential, commercial, and recreational spaces, offering state-of-the-art amenities, extensive green areas, and advanced digital connectivity. aiming to attract investors and residents alike while setting new benchmarks in urban planning and community-centric living.
Some of ROSHN’s most defining projects include ALMANAR Makkah, MARAFY, Elie Saab Branded Residences, and SEDRA.
Residential Real Estate
Transaction Volume and Value
The residential real estate sector in Saudi Arabia has experienced remarkable growth, with transaction volumes and values increasing steadily across major cities.
In 2024, the total number of residential transactions across Riyadh, Jeddah, and the Dammam Metropolitan Area (DMA) reached an impressive 102,522, with a combined value of SR118 billion ($32 billion). This represents a significant increase of approximately 50% compared to the previous year.
City-wise Performance
- Riyadh: The capital city has emerged as the primary driver of residential real estate growth. Sales rates in Riyadh increased by 5% for apartments and 12% for villas over the past 12 months. The city’s status as the main business hub has attracted substantial foreign investment, further boosting the residential market.
- Jeddah: As a critical tourism gateway, Jeddah has seen steady growth in its residential real estate sector. Apartment sales in the city experienced an increase of approximately 1% over the past year.
- Dammam Metropolitan Area: The DMA, comprising Dammam, Dhahran, and Al Khobar, has also witnessed positive growth in its residential market, with apartment sales rising by about 1% in the last 12 months.
Affordable Housing Initiatives
The Saudi government’s focus on providing affordable housing options has played a crucial role in driving residential real estate growth.
In Riyadh, approximately 69% of apartments sold in the last 12 months were priced between SR250,000 and SR1 million ($66,000 to $266,000), primarily targeting the low to mid-income segments. This emphasis on affordable housing has helped cater to the needs of the Kingdom’s expanding population.
Luxury and Mixed-use Developments
While affordable housing remains a priority, there has been a growing demand for luxury and mixed-use properties across Saudi Arabia. Developers are responding to this trend by creating high-end residential complexes that offer a range of amenities and services.
These developments are particularly popular among affluent locals and expatriates seeking premium living experiences.
Office Market
Strong Demand for Office Space
Saudi Arabia’s robust economic growth has fueled a strong demand for office space across major cities.
With the Kingdom’s GDP reaching SR3 trillion ($786 billion) in 2024 and forecasted to grow to SR3.7 trillion ($981 billion) by 2030, businesses are expanding their operations and seeking quality office spaces.
Grade A Office Supply
The supply of Grade A office space has been steadily increasing to meet the growing demand. As of the end of 2024, office supplies in Riyadh, Jeddah, and the DMA stood at 6.4 million square meters, 2.2 million square meters, and 1.5 million square meters, respectively. Notable developments include:
- Riyadh: Laysen Valley, STC Square Phase 1, and the New East project added a total gross leasable area (GLA) of 145,000 square meters.
- Jeddah: An additional 150,000 square meters of GLA was delivered, including projects like JCDC and Darb Al Haramain.
- King Abdullah Financial District (KAFD): A significant portion of the KAFD office supply was successfully delivered, reflecting high pre-leasing and leasing rates.
Regional Headquarters Program
The launch of the Regional Headquarters Program in Q1 2024 has had a significant impact on the office market, particularly in Riyadh. By the end of the year, 571 companies had relocated their regional headquarters to the Saudi capital, driving up demand for premium office spaces.
The relocated companies who are set to establish their regional headquarters in Saudi Arabia include EY Mena, Goldman Sachs, Adobe, and Boeing, Rothschild & Co, with more companies including IHG Hotels & Resorts, JLL, and Northern Trust Corp. have already established their regional HQs.
Government Initiatives
The Saudi government has introduced several measures to support the growth of the office market, including:
- 30 Year Tax Exemption for Multinational Companies relocating regional HQs to Riyadh
- Streamlined regulations to facilitate business operations
- Large-scale projects like New Murabba and Diriyah Gate, which are expected to offer extensive office space upon completion
Hospitality Sector
Rising Average Daily Rates
The hospitality sector in Saudi Arabia continues to thrive, with the Average Daily Rate (ADR) increasing to SR716 in 2024, up from SR702 in 2023. This growth is attributed to the Kingdom surpassing its Vision 2030 goal of 100 million tourists a year, seven years ahead of schedule.
City-specific Performance
- Riyadh: The capital city has outperformed global cities like Hong Kong, Madrid, and Dubai, with ADR climbing to SR895 in 2024. This surge is attributed to strong corporate and leisure demand, as well as the successful Riyadh Seasons event.
- Jeddah: As a critical tourism gateway, Jeddah’s market remains strong, with an ADR of SR680. New developments along the waterfront are expected to further strengthen market performance.
Cultural and Entertainment Investments
The growth of the hospitality sector is further fueled by investments in cultural and entertainment attractions. Efforts to revitalize Saudi Arabia’s heritage landmarks and introduce new attractions such as AlUla and the New Murabba project are expected to drive tourism and boost the hospitality market.
Retail Sector
Projected Growth
According to Oxford Economics, the total retail sales volume in Saudi Arabia is expected to experience continued growth at a CAGR of 4.4% between 2025 and 2027. This growth is driven by increasing consumer spending power and evolving shopping habits.
Focus on Integrated Experiences
Retail operators throughout the Kingdom are focusing on developing assets that offer integrated entertainment and immersive experiences. This shift is in response to changing customer preferences, which are moving away from traditional standalone retail developments.
Rent Trends
Throughout 2024, retail rents in Saudi Arabia increased marginally due to a high volume of supply and relatively stable demand. However, older retail developments are facing challenges as newer developments with more diverse offerings capture market share.
Pop-up Store Trend
The Deloitte report highlights the growing trend of pop-up stores in Saudi Arabia. These temporary retail spaces are gaining traction in major retail malls, offering a dynamic addition to the traditional retail landscape and creating unique customer experiences.
Industrial and Logistics
Key Growth Drivers
The growth in demand for warehousing and logistics facilities is primarily attributed to various initiatives and incentives deployed as part of Vision 2030, including:
- The National Industrial Development and Logistics program
- Special Economic Zones such as Riyadh Integrated Logistics Zone
- Saudi Port Authority initiatives enhancing port infrastructure in Jeddah and DMA
- The Vision 2030 logistics master plan
Increasing Cargo Throughput
Based on statistics from the Saudi Port Authority, cargo throughput increased by 14% in 2024 compared to 2023. This growth in cargo handling capacity is driving demand for modern warehousing and logistics facilities across the Kingdom.
Transforming Saudi Real Estate
As Saudi Arabia continues its journey of economic diversification and modernization, its real estate sector stands at the forefront of this transformation.
The $32 billion in residential sales achieved in 2023 may well be just the beginning of a new era in Saudi real estate, one that will reshape not only the Kingdom’s skylines but also its economic landscape for generations to come.
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.
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