Saudi Arabia Commercial Real Estate Market: Vision 2030 Projects & Investment Growth

According to IMARC Group's latest research publication, Saudi Arabia commercial real estate market size reached USD 67.5 Billion in 2024. The market is projected to reach USD 90.9 Billion by 2033, exhibiting a growth rate of 3.35% during 2025-2033.

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

• Smart Property Management and Operations: AI-powered platforms reduce energy consumption by 30% in commercial buildings while optimizing HVAC, lighting, and facility management through real-time data analysis and predictive algorithms for Saudi developers.
• Investment Decision Intelligence: JLL's Falcon AI platform enables rapid analysis of large datasets through natural language queries, delivering precise valuations and market forecasts that help institutional investors navigate complex portfolios across multiple Saudi cities.
• Digital Twin Technology for Development: AI-driven digital twins allow investors to virtually walk through off-plan properties, switch design elements in real-time, and analyze buyer preferences to accelerate pre-launch commitments in markets like Riyadh and Jeddah.
• PropTech Revolution in Transactions: Blockchain-based AI systems streamline lease management, automate property registrations, and cut vacancy rates by 4 percentage points while enabling tokenized real estate investments starting from SAR 500 for retail investors.
• Data-Driven Site Selection: Arabian Dyar partnered with Google in a $100 million deal to integrate AI across project development—from land selection to facility management—using 15 years of internal data to train custom models.

How Vision 2030 is Revolutionizing Saudi Arabia Commercial Real Estate Industry

Vision 2030 has unleashed over $1.3 trillion in real estate and infrastructure investments, fundamentally transforming Saudi Arabia's commercial property landscape. Mega-projects like NEOM ($28.7 billion committed), Qiddiya ($7 billion in contracts), and Diriyah Gate ($9 billion invested) are creating unprecedented demand for office spaces, retail complexes, and hospitality assets. Riyadh alone has secured $35 billion in contracts, adding 4.6 million square meters of office space and preparing for global events like Expo 2030 and FIFA World Cup 2034. The government's push to attract 150 million tourists annually by 2030, combined with 500+ foreign regional headquarters established since 2021, is driving sustained growth across all commercial segments. The Public Investment Fund's $2 billion Brookfield Middle East Partners vehicle, allocating at least 50% to Saudi assets, and the upcoming Non-Saudi Property Ownership Law (effective January 2026) allowing 100% foreign ownership are reshaping the investment landscape and positioning the Kingdom as a premier global real estate destination.

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Saudi Arabia Commercial Real Estate Market Trends & Drivers:

The Saudi commercial real estate sector is experiencing explosive growth driven by economic diversification and infrastructure mega-projects. The non-oil economy expanded by nearly 6.2% annually, now representing 56% of total GDP, fueling demand across all commercial segments. NEOM, The Red Sea Project, and Qiddiya are attracting multinational corporations and startups, intensifying requirements for modern office facilities and mixed-use developments. In Riyadh, Class A office rents surged 20.8% in one year with premium segment vacancy rates under 2%, while the capital adds nearly 29,000 hotel rooms and 340,000 residential units by decade's end. The September 2025 implementation of a five-year rent freeze in Riyadh stabilizes costs while enhancing appeal as a regional business hub. Over 800,000 square meters of new retail space is entering by 2027, with Westfield Riyadh and Avenues Mall transforming Northern Riyadh into a premier corridor. Foreign investment reforms including the February 2025 Investment Law abolishing licensing requirements and granting equal treatment to overseas investors are accelerating capital inflows.

Religious tourism and entertainment are reshaping commercial property dynamics across the Kingdom. The hospitality sector recorded a 43.9% increase in revenue per available room, with 148 new flight routes boosting visitor numbers by 20%. The country tops global hotel supply expansion lists, driven by mega-developments like The Red Sea Project's 50 luxury resorts across 90 pristine islands and entertainment complexes at Qiddiya generating $4 billion in GDP annually. The liberalization of foreign ownership rules in Makkah and Madinah has unlocked new investment opportunities, with developers now able to access prime religious tourism markets. E-commerce expansion creates robust demand for logistics infrastructure including cold storage facilities, last-mile delivery hubs, and fulfillment centers. Government investment in state-of-the-art industrial parks near airports and ports, combined with free-zone incentives, positions logistics and industrial assets for 7.34% growth. The shift toward mixed-use developments integrating residential, commercial, retail, and entertainment spaces—exemplified by King Abdullah Financial District and The Avenues Mall in Khobar—aligns with smart city goals.

Regulatory innovation and institutional capital are accelerating market maturation across Saudi Arabia. The expanded White Land Tax policy targeting over 411 million square meters of undeveloped land with tiered rates up to 10% incentivizes accelerated construction and reduces speculative holding. The Real Estate General Authority's launch of the digital Saudi Properties platform ahead of January 2026 foreign ownership law creates centralized eligibility verification, streamlined applications, and transparent developer engagement. Over 108 merger filings in Q1 2025 featured 80% foreign acquirers, signaling rising cross-border interest. ROSHN's November 2024 rebranding unveiled 200 million square meters of residential and 4 million square meters of commercial pipeline, while the Sakani program uses AI to streamline 96,000+ housing applications. The establishment of Real Estate Investment Trusts (REITs) provides liquidity to institutional and retail investors, with sustainability programs like Mostadam and LEED certifications commanding premium rents. Investment opportunities extend to tier-2 urban nodes like Taif and Al-Ahsa where annual visitor flows exceed 20 million yet branded hotel stock remains thin, offering first-mover advantages near new infrastructure.

Saudi Arabia Commercial Real Estate Market Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

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

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.

Recent News and Developments in Saudi Arabia Commercial Real Estate Market

• May 2025: DLR Group announced plans to expand into Saudi Arabia, responding to the Kingdom's giga-projects like NEOM, The Line, and Diriyah Gate, aiming to play a leading role in defining the region's architectural identity and unprecedented urban development ambitions.
• April 2025: Bain & Company doubled its presence in Saudi Arabia by launching a significantly larger regional headquarters in Riyadh's King Abdullah Financial District—the firm's third office in the city and over twice the size of its previous location, demonstrating decade-long commitment to the Kingdom.
• April 2025: Majid Al-Futtaim unveiled expansion plans to launch 13 new lifestyle retail stores across Saudi Arabia in 2025, continuing its support for the Saudi market and reinforcing its position as a regional leader in shopping malls, retail, and leisure.
• February 2025: The Capital Markets Authority announced that foreign investors will be allowed to invest in companies with real estate holdings in Mecca and Medina, enhancing the economy by drawing foreign investment and supplying needed liquidity for ongoing and upcoming projects.

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