Report Overview

The Saudi Government’s heightened focus on economic diversification efforts and large-scale infrastructure projects, streamlined regulations, and improved transparency is expected to boost the growth of Saudi Arabia Real Estate Market during the forecast period between 2024 and 2030.

Saudi Arabia Real Estate Market - Industry Trends & Forecast Report, 2030

The Saudi Arabia Real Estate Market size was estimated to be worth USD 169.23 billion in 2023. During the forecast period between 2024 and 2030, the Saudi Arabia Real Estate Market size is projected to grow at a CAGR of 5.56%, reaching a value of USD 247.18 billion by 2030. Major growth factors for the Saudi Arabia Real Estate Market include increasing housing demands and rising construction of residential spaces in the Kingdom. The Saudi Government aims towards economic diversification, because of which the demand for commercial and industrial spaces is also rising, driving the overall Saudi Arabia Real Estate Market.

Real Estate – Overview

Real estate is the land plus any improvements, whether natural or human-made, that are permanently affixed to the property, such as homes. It is suitable for commercial, industrial, and domestic applications. The five primary categories of real estate are raw land, commercial, industrial, residential, and special use. Real estate professionals, such as realtors or real estate agents, frequently assist in the purchasing, selling, and leasing of properties within the real estate market. These experts guide people and organizations through the intricacies of the real estate transaction process.

Saudi Arabia Real Estate Market

Growth Drivers

Rising Integration of Emerging Technologies in Real Estate Sector

The real estate companies in Saudi Arabia are increasingly adoption advanced technologies, such as Artificial Intelligence (AI) and machine learning (ML) to improve their services and advance customer satisfaction. Devices connected to the Internet of Things (IoT) provide useful information on building performance, occupancy trends, and maintenance requirements. Another technology which is gaining significant traction in the sector is augmented reality which allow property owners to see furnishings in their houses or witness improvements before they are completed. Such tools allow potential buyers to access crucial and detailed information before making the decision, which is anticipated to provide lucrative growth opportunities to the Saudi Arabia Real Estate Market over the forecast period.

Challenges

High Volatility in Real Estate Sector

Economic downturns and volatilities may cause a decline in the demand for real estate, a stagnation of property values, and a rise in rivalry among real estate companies. In addition, rapidly changing laws, regulations, and rules governing real estate transactions also negatively impact the sector. It may be difficult to navigate complicated zoning rules, property rights, and environmental restrictions; this is one of the main things holding back the growth of the Saudi Arabia Real Estate Market.

Saudi Arabia Real Estate Market

Segmental Coverage

Saudi Arabia Real Estate Market – By Property Type

Based on property type, the Saudi Arabia Real Estate Market is segmented into Residential, Commercial, and others. The residential segment is further divided into apartments, condominiums, villas, and landed houses. The commercial segment is further divided into office spaces, retail outlets, and industrial real estate. The other property types include industrial, hospitality, and others. The residential segment holds the largest share in the Saudi Arabia Real Estate Market owing to the rising population and migration to major cities.

Saudi Arabia Real Estate Market – By Service

Based on service, the Saudi Arabia Real Estate Market is segmented into Property Management, Valuation Services, and others (including Advisory Services and Leasing). The property management segment dominates the Saudi Arabia Real Estate Market, as it acts as a link between the landlord and the renter and overlook various responsibilities, such as financial management, legal compliance, property maintenance, screening tenants, and handling taxes. The increasing demand for housing elevates the need for property management to handle these operations, which drives the segment’s market growth.

Competitive Landscape

Major players operating in the Saudi Arabia Real Estate Market include Jenan Real Estate Company, Sedco Development, Jabal Omar, Kingdom Holding Company, Abdul Latif Jameel, Dar Ar Alkan, JLL Riyadh, Century21 Saudi Arabia, and Saudi Real Estate Company.

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In May 2024 – Mohammad Al-Nahdi Real Estate, a real estate agency based in KSA, and Alinma Investment, an investment company, launched USD 365 million in funds to boost real estate development in the Eastern Province of Saudi Arabia.

Scope of the Report

By Property Type

• Residential

1. Apartments

2. Condominiums

3. Villas

4. Landed Houses

• Commercial

1. Office Spaces

2. Retail Outlets

3. Industrial Real Estate

• Others

1. Industrial

2. Hospitality

3. Others

By Service

• Property Management

• Valuation Services

• Others (Advisory Services, Leasing)