Saudi Arabia's Real Estate Market: Q4 2024 Overview

Saudi Arabia's real estate sector has demonstrated robust growth in the fourth quarter of 2024, driven by strategic initiatives under Vision 2030 and increased investor interest.

Main points:

1. Surge in Real Estate Transactions:
   • In the first half of 2024, the total number of real estate transactions across all asset classes increased by 38% to over 106,700.
   • The total value of these transactions rose by 50% to SAR 127.3 billion. 
2. Residential Market Growth:
   • Residential transactions accounted for 61% of all real estate deals by value, with a 41% increase in the number of deals to nearly 91,860 sales.
   • The value of residential transactions increased by 48% to SAR 77.6 billion. 
3. Government Initiatives Boosting Homeownership:
   • Over 96,000 families benefited from the Kingdom’s Housing Program in 2023, facilitating access to affordable home financing solutions.
   • The Development Housing Program assisted more than 20,000 families through homeownership tracks. 
4. Luxury Real Estate Developments:
   • Saudi Arabia is intensifying its focus on luxury property development, with projects like the Trump Tower in Jeddah marking the Trump Organization's first venture in the country. 
   • The Jeddah Tower project, set to be the world's tallest building at over 1,000 meters, has resumed with plans to complete by 2028. 
5. Inflation and Housing Rents:
   • Saudi Arabia's annual inflation rate rose to 2% in November 2024, primarily driven by a 10.8% increase in housing rents, with apartment rentals increasing by 12.5%. 

Factors Driving Growth:

• Vision 2030 Initiatives: The government's strategic projects aim to diversify the economy and reduce dependency on oil, attracting both local and international investors.
• Increased Foreign Investment: Reforms and mega-projects have made Saudi Arabia a hotspot for real estate investment, with international developers and investors entering the market.
• Population Growth: A youthful population exceeding 35 million and urbanization trends continue to drive demand for residential properties.

Outlook:

Saudi Arabia's real estate market is poised for continued growth, supported by government initiatives, economic diversification efforts, and significant infrastructure developments. The sector's performance in Q4 2024 underscores its resilience and attractiveness to both domestic and international investors.

As the Kingdom advances its Vision 2030, focusing on sustainability and innovation, the real estate market offers promising opportunities for investors and stakeholders alike.