Real Estate Market in Saudi Arabia: Housing Demand, Vision 2030, Infrastructure Growth & Market Transformation

According to IMARC Group's latest research publication, the Saudi Arabia real estate market size was valued at USD 77.2 Billion in 2025. Looking forward, IMARC Group estimates the market to reach USD 137.8 Billion by 2034, exhibiting a growth rate (CAGR) of 6.70% during 2026-2034.

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

• Smart Valuation Platforms: AI-powered Automated Valuation Models analyze millions of data points including air quality, transportation plans, and traffic trends, achieving 95% accuracy rates and enabling investors to make faster, bias-free property decisions across major Saudi cities.
• Predictive Maintenance Systems: JLL's Falcon AI platform cuts energy consumption by 30% in Saudi's smart commercial buildings through predictive HVAC monitoring, reducing downtime costs while flagging equipment failures before they impact tenant experience and property operations.
• Digital Urban Planning: NEOM integrates AI to manage infrastructure for 1 million planned residents using blockchain-based property transactions, while digital twin simulations optimize traffic patterns, utilities, and service delivery across the Kingdom's emerging smart cities.
• Property Intelligence Tools: Platforms like Quant process 25 trillion data points from satellite imagery to deliver real-time property insights, helping investors identify high-growth corridors and analyze market trends across Saudi Arabia's 694 neighborhoods in major urban centers.
• Streamlined Housing Applications: The Sakani program uses AI to process over 96,000 housing applications with improved transparency, connecting qualified families to digital mortgage systems and accelerating approvals for government-backed affordable housing throughout the Kingdom.

How Vision 2030 is Revolutionizing Saudi Arabia Real Estate Industry

Vision 2030 is fundamentally transforming Saudi Arabia's real estate sector through unprecedented infrastructure commitments and regulatory reforms. The Kingdom has unveiled over USD 1.7 trillion in development projects showcased at major international forums, with flagship initiatives like NEOM attracting USD 28.7 billion in investment, Qiddiya's entertainment city securing USD 7 billion, and Diriyah Gate receiving USD 9 billion for cultural development. The National Housing Company has deployed USD 12 billion to address residential demand, while SAR 1.25 trillion (USD 340 billion) has been allocated for urban development and modernization. Foreign ownership regulations now permit non-Saudis to purchase property for investment purposes through five-day e-service approvals, targeting USD 100 billion in annual foreign direct investment. The government's Sakani program has supported over 96,000 families, while the White Land Tax policy imposes rates up to 10% on undeveloped properties to accelerate construction. These coordinated initiatives are creating 178,000 jobs through projects like Diriyah alone, contributing USD 18.6 billion annually to GDP while positioning the Kingdom as a global real estate hub.

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Saudi Arabia Real Estate Market Trends & Drivers:

Massive infrastructure investments are reshaping Saudi Arabia's urban landscape at an extraordinary scale. The Kingdom has over 660,000 new housing units in the pipeline, representing a 30% increase in planned residential inventory. Riyadh alone has committed to delivering 100,000 new homes to accommodate the city's expansion goal of doubling its population to 15 million residents. Major giga-projects valued at USD 1.3 trillion are generating systematic demand across residential, commercial, and hospitality segments. The Red Sea Project features over 1,000 residential units and 8,000 hotel rooms expected to contribute USD 5.9 billion to GDP annually, while NEOM's revolutionary urban planning includes The Line, spanning over 100 miles of integrated smart infrastructure. Construction spending reached USD 49.3 billion with contract awards rising 8% year-over-year, demonstrating robust pipeline momentum. The hospitality sector recorded a 43.9% increase in revenue per available room, with 148 new flight routes supporting Vision 2030's target of attracting 150 million tourists and driving demand for luxury hotels and resorts across the Kingdom.

Digital transformation and PropTech adoption are revolutionizing how Saudis transact, invest, and manage real estate. The PropTech market reached USD 865 million, with government-backed platforms like Balady, Sakani, and Absher facilitating hundreds of thousands of digital property transactions. Internet usage for e-commerce reached 33.6 million users, representing a 42% increase from prior periods, while smartphone penetration at 99% enables seamless mobile access to property platforms. The Real Estate General Authority's Saudi PropTech Hub has created sandbox environments for testing digital solutions, while nationwide 5G deployment and extensive fiber-optic networks provide the connectivity backbone for advanced applications. Over 8 million lease agreements have been registered on Ejar, the national property rental platform, since its inception. The government has allocated approximately USD 500 billion for smart city development under Vision 2030, with immersive technologies like VR, AR, and digital twins becoming mainstream in property tours and urban planning. Private developers are leveraging Building Information Modeling, IoT-enabled facility management, and AI-based project tracking to improve construction efficiency and reduce costs by up to 15%.

Favorable financing reforms and homeownership initiatives are accelerating residential transaction volumes across the Kingdom. The Saudi Central Bank reduced down payments to 5% for nationals, triggering a 53% surge in Jeddah's housing transactions alone. With 61% of real estate transactions being residential, nearly 93,700 deals worth USD 20.6 billion were recently recorded. Developers like Dar Al Arkan are constructing 27,500 new units in Riyadh and Jeddah targeting young families and expatriates, while Dar wa Emaar launched two major residential communities valued at SAR 3.8 billion (USD 1.01 billion) featuring integrated apartments, villas, and commercial spaces. The housing sector's contribution to homeownership rates has reached 63.7%, progressing toward the 70% Vision 2030 target. Real Estate Investment Trusts have expanded with over 20 funds on the Tadawul exchange managing SAR 12 billion (USD 3.2 billion) in assets, providing smaller investors affordable entry points to commercial properties. Riyadh maintains a 99.7% occupancy rate for Grade A offices, attracting global corporations like Siemens to establish regional headquarters, while Special Economic Zones permit 100% foreign ownership, democratizing investment access.

Saudi Arabia Real Estate Market Industry Segmentation:

The report has segmented the market into the following categories:

Property Type Insights:

• 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:

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

Key Players:

• Abdul Latif Jameel
• Dar Al Arkan
• Emaar
• Jabal Omar Development Company
• Jenan Real Estate Company
• Kingdom Holdings Company
• SEDCO Development (SEDCO Holding)

Recent News and Developments in Saudi Arabia Real Estate Market

• November 2025: Dar wa Emaar Real Estate launched Al-Narjis and Al-Fursan Communities in Riyadh with a combined development value of SAR 3.8 billion (USD 1.01 billion), featuring 750 apartments and integrated commercial zones aligned with Vision 2030's homeownership targets.
• June 2025: ROSHN and Ajdan Real Estate partnered to develop 113 upscale villas in Makkah's ALMANAR community spanning 32,921 square meters, contributing to a wider plan for 4,149 sustainable homes designed to accommodate more than 17,000 residents using AI-driven design.
• May 2025: National Housing Company contracted China State Construction Engineering to deliver over 5,000 homes in Riyadh's Murcia project valued at USD 666.7 million (SAR 2.5 billion), bolstering affordable housing inventory along the capital's northern corridor across 2.7 million square meters.
• May 2025: Jeddah announced 29 new real estate projects across commercial, industrial, and residential sectors as Saudi bank lending reached USD 827 billion, driven predominantly by corporate loans with significant real estate sector participation and investment activity.

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