Saudi Arabia Residential Real Estate Market Size
| Study Period | 2024-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 187.20 Billion |
| Market Size (2029) | USD 284.90 Billion |
| CAGR (2024 - 2029) | 8.77 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Saudi Arabia Residential Real Estate Market Analysis
The Saudi Arabia Residential Real Estate Market size is estimated at USD 187.20 billion in 2024, and is expected to reach USD 284.90 billion by 2029, growing at a CAGR of 8.77% during the forecast period (2024-2029).
Saudi Arabia currently has a population of 36.4 million, which is growing by more than 1.4% annually in 2022. It is dominated by young middle-class Saudi Arabians who are first-time homebuyers. In 2022, the population aged 0 to 14 years was 25.95 percent, the population aged 15 to 64 years was 71.24 percent, and the population aged 65 and over was 2.81 percent. The demand from expatriates has further intensified the housing shortage, with about 5.5 million ex-pat workers in the country. With younger Saudi nationals and expatriates displaying a preference for apartments and more affordable properties, the government is taking steps such as incentivizing developers to build affordable housing projects and encouraging banks to introduce more home financing options. To fulfill its ambition of increasing homeownership by Saudi Arabian nationals, the 2025 Housing Program Strategy builds on the achievements of the first phase. The second phase focuses on improving the overall affordability of the Saudi housing market and continues to increase the homeownership rate among Saudi families to 70% by 2030.
Prior to Vision 2030, housing support could take up to 15 years for families in Saudi Arabia. Today, housing support is immediate. Families are the lifeblood of a society, and the Kingdom recognizes the desire of every family to own a home – a safe haven, a place to build memories and celebrate milestones. By making it easier to access financial support, simplifying procedures and digitizing paperwork, homeownership rose from 47% to over 60% by the end of 2022.
Saudi Arabia Residential Real Estate Market Trends
The Real Estate Market in Saudi Arabia is On The Rise In Line With Vision 2030.
2023 started with a bang for the real estate sector, as deals worth over SR10 billion (USD 2.66 billion) were signed on the first day of the Real Estate Future Forum in Riyadh. Over the past decade, the Kingdom has made tremendous strides in transforming the housing sector. The government's strong policies and initiatives, such as activating multiple finance products, are driving the sector forward, tackling key challenges in the housing market, and making home ownership accessible to new generations of Saudi citizens.
Nearly 555,000 new residential units will be delivered across the Kingdom in 2022, with another 200,000 units projected to be delivered by 2030. Riyadh alone is expected to add 200,000 new homes in 2022 as the capital prepares for an increase in population of 127 percent by 2030, bringing the total number of residents to 17 million. Despite the high number of new residential units planned, the country faces a national shortfall of nearly 1.5 million units in 2022. Of course, the challenge lies in building the right stock to meet the extraordinary demand levels now and in the future.
With such growth in mind, it’s no surprise that there’s a lot of demand from investors who want to take advantage of the boom in the Kingdom’s residential real estate market.
Off-Plan Property Sales are Gaining Popularity
In Saudi Arabia, off-plan real estate sales have become increasingly popular in recent years. In the first six months of 2023, the number of off-plan sales increased by 52 percent over the same period in 2021. "Off-plan real estate" refers to the process of buying a property before its construction or completion. Typically, buyers invest in a property based on the architectural plans and specs provided by the real estate developer.
In the first half of 2023, Wafi, a branch of the country's Department of Off-Plan Sales and Leasing, licensed 47 off-Plan sales projects. Wafi has been working to improve the real estate industry and provide housing that meets the needs of Saudi families, to increase the residential ownership ratio to 70% by 2030, in line with the goals of the country's housing program, which is one of the main goals of the Vision 2030.
According to sources, the number of licenses issued for small and mid-sized projects increased 139 percent in the first six months of 2023 over the same period of the previous year. The committee approved 79 projects to deliver 1,832 new residential units across all regions nationwide. The sources added that the number of completed projects increased 130 percent during the same period. In comparison to the first six months of 2022, there are an additional 174 off-plan real estate developers eligible for different projects, representing a 9% increase.
Saudi Arabia Residential Real Estate Industry Overview
The Saudi Arabia residential real estate market is fragmented with many players. Some of the major players in the market are Jabal Omar Development Company, Al Saeden Holding Company, and Emaar. The merger and acquisition (M&A) activity in Saudi Arabia is also expected to increase in the coming years, which is likely to increase real estate development, thereby encouraging more companies to enter the market.
Saudi Arabia Residential Real Estate Market Leaders
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Jabal Omar Development Company
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Al sedan Holding Company
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Emaar
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Sedco Development
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Abdul Latif Jamal
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Residential Real Estate Market News
- September 2023: Emaar Properties has the potential to develop residential communities in the Kingdom of Saudi Arabia. Emaar could begin construction of a 4,000-unit housing project.
- June 2023: The first phase of NEOM’s residential communities expansion is one of the world’s largest international PPPs for accommodation, with the total value of the social infrastructure project amounting to more than SAR 21 billion (USD 5.60 billion). NEOM announced that it had finalized contracts with investors to build the residential communities, which will accommodate the growing workforce of the region. Leading Saudi Arabian companies such as Alfanar Global Development (AGL), AARMAL real estate investment company (AREIC), and NESMA Holding Co. (NSC) participated in the first phase, as well as Tamasuk, which was involved through two separate partners (Amlal Al Arab i Alabi Group Company (AALG) and SAMCO).
Saudi Arabia Real Estate Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
- 4.1 Current Economic Scenario and Consumer Sentiments
- 4.2 Residential Real Estate Buying Trends - Socio-economic and Demographic Insights
- 4.3 Government Initiatives and Regulatory Aspects for the Residential Real Estate Sector
- 4.4 Insights into Size of Real Estate Lending and Loan to Value Trends
- 4.5 Insights into Interest Rate Regime for General Economy and Real Estate Lending
- 4.6 Insights into Rental Yields in the Residential Real Estate Market
- 4.7 Insights into Capital Market Penetration and REIT Presence in Residential Real Estate
- 4.8 Insights into Affordable Housing Support Provided by Government and Public-private Partnerships
- 4.9 Insights into Real Estate Tech and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)
- 4.10 Impact of COVID-19 on the Market
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4.11 Market Dynamics
- 4.11.1 Drivers
- 4.11.2 Restraints
- 4.11.3 Opportunities
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Condominiums and Apartments
- 5.1.2 Villas and Landed Houses
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5.2 Key Cities
- 5.2.1 Riyadh
- 5.2.2 Jeddah
- 5.2.3 Dammam
- 5.2.4 Rest of Saudi Arabia
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration
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6.2 Company Profiles
- 6.2.1 Jenan Real Estate Company
- 6.2.2 Ewaan Co. Ltd
- 6.2.3 Sedco Development
- 6.2.4 Jabal Omar
- 6.2.5 Emaar
- 6.2.6 Sedco Development
- 6.2.7 Abdul Latif Jamal
- 6.2.8 Rafal
- 6.2.9 Al Sedan
- 6.2.10 Dar Al Arkan
- 6.2.11 Alfirah United Company for Real Estate
- 6.2.12 AL Nassar*
- *List Not Exhaustive
7. FUTURE OF THE MARKET AND ANALYST RECOMMENDATIONS
8. APPENDIX
Saudi Arabia Residential Real Estate Industry Segmentation
Residential real estate is an area developed for people to live in. As defined by local zoning ordinances, residential real estate cannot be used for commercial or industrial purposes.
This report aims to provide a detailed analysis of the Saudi Arabian residential real estate market. It focuses on the market dynamics, technological trends, insights, government initiatives taken in the residential real estate sector, and the impact of COVID-19 on the market.
The residential real estate market in Saudi Arabia is segmented by type (condominiums and apartments and villas and landed houses) and key cities (Riyadh, Jeddah, Dammam, and the rest of Saudi Arabia). The report offers the Saudi Arabia residential real estate market size in value (USD) for all the above segments.
| Type | Condominiums and Apartments |
| Villas and Landed Houses | |
| Key Cities | Riyadh |
| Jeddah | |
| Dammam | |
| Rest of Saudi Arabia |
Saudi Arabia Real Estate Market Research FAQs
How big is the Saudi Arabia Residential Real Estate Market?
The Saudi Arabia Residential Real Estate Market size is expected to reach USD 187.20 billion in 2024 and grow at a CAGR of 8.77% to reach USD 284.90 billion by 2029.
What is the current Saudi Arabia Residential Real Estate Market size?
In 2024, the Saudi Arabia Residential Real Estate Market size is expected to reach USD 187.20 billion.
Who are the key players in Saudi Arabia Residential Real Estate Market?
Jabal Omar Development Company, Al sedan Holding Company, Emaar, Sedco Development and Abdul Latif Jamal are the major companies operating in the Saudi Arabia Residential Real Estate Market.
What years does this Saudi Arabia Residential Real Estate Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Residential Real Estate Market size was estimated at USD 170.78 billion. The report covers the Saudi Arabia Residential Real Estate Market historical market size for years: . The report also forecasts the Saudi Arabia Residential Real Estate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Real Estate Industry Report
Statistics for the 2024 Saudi Arabia Residential Real Estate market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Residential Real Estate analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
