Saudi Arabia’s Residential Market Sees 35% Growth Over Five Years, Knight Frank Reports

Saudi Arabia’s residential real estate sector has experienced a significant upswing, with transaction volumes increasing by 35% over the past five years, according to a new report by global property consultancy Knight Frank. The surge reflects growing domestic demand, evolving demographics, and the impact of government-led housing initiatives under Vision 2030.
The report highlights how structural reforms, housing support programs, and an expanding urban population have collectively contributed to the growth in residential activity across major Saudi cities including Riyadh, Jeddah, Dammam, and Makkah.

Key Insights from the Report:

• 35% increase in residential transactions nationwide since 2019
• Riyadh remains the most active city, accounting for over one-third of total transactions
• Significant uptick in apartment sales, particularly among young Saudi buyers
• Strong investor interest in new master-planned communities and mixed-use developments

The expansion has been further driven by the Ministry of Housing’s Sakani Program, which has provided financing support and incentives for first-time buyers. This has played a vital role in improving homeownership rates among Saudi nationals, a central pillar of the country’s long-term development strategy.

Shift in Buyer Preferences

Knight Frank's research also notes a noticeable shift in buyer preferences toward smaller, more affordable units—especially apartments—as urbanization accelerates and family structures evolve. The trend is consistent with the Kingdom’s broader real estate goals to create livable, sustainable, and diversified urban environments.

Additionally, increasing participation from private developers and improvements in property registration systems have boosted transparency and investor confidence.