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Saudi Arabia’s real estate sector is expected to sustain its strong growth trajectory into 2025 and beyond, as government initiatives, demographic trends, and large-scale infrastructure investments continue to transform the Kingdom’s urban landscape.
According to the latest forecasts from the Real Estate General Authority (REGA), the Kingdom’s property market is projected to reach a value of SAR 381 billion (approx. USD 101.6 billion) by 2029, supported by a compound annual growth rate (CAGR) of 8%, starting from 2024. This upward trend is being driven by both the residential and commercial segments, fueled by rising demand, regulatory reforms, and strategic national development programs.
Key Growth Drivers:
- Vision 2030 Initiatives: Diversification away from oil dependency has spurred investment in real estate, tourism, and infrastructure across key regions including Riyadh, Jeddah, NEOM, and the Red Sea coast.
- Urban Expansion Projects: Mega-projects such as NEOM, The Line, and Qiddiya are reshaping the urban and investment landscape of the Kingdom.
- Population Growth & Housing Demand: With a young, expanding population, demand for affordable and mid-income housing is surging, prompting a wave of residential developments.
- Private Sector Involvement: Recent regulatory changes and public-private partnerships have made the market more accessible to foreign investors and developers.
Market Outlook for 2025
The residential sector remains the dominant force, driven by high demand from Saudi nationals benefiting from government housing support programs. Meanwhile, commercial real estate—particularly in Riyadh and Jeddah—is experiencing a resurgence as international firms establish regional headquarters in line with the Kingdom’s economic localization policies.
REGA has emphasized its continued efforts to increase transparency, standardize real estate data, and support smart city initiatives to enhance investment confidence. Additionally, sustainable building practices and green construction are gaining traction, aligning with global ESG trends.
Investor Confidence Remains High
Real estate analysts note that the Kingdom is entering a “maturity phase”, where a well-regulated and digitally-enabled market environment is attracting long-term capital. Institutional investors and developers from the GCC, Europe, and Asia are increasingly participating in the Saudi market, encouraged by promising returns and stable economic indicators.
As Saudi Arabia positions itself as a regional real estate powerhouse, 2025 is set to be another pivotal year, offering ample opportunities across the residential, commercial, hospitality, and industrial segments.
