Saudi Arabia Residential Real Estate Market Size (2024 - 2029)

The Saudi Arabia Residential Real Estate Market is experiencing significant growth, driven by a young, expanding population and increasing demand for affordable housing. The market's expansion is supported by government initiatives aimed at enhancing homeownership among Saudi nationals, particularly through the development of affordable housing projects and improved financing options. The influx of expatriates has further intensified the housing demand, prompting the government to incentivize developers and banks to address the housing shortage. These efforts are part of a broader strategy to increase the homeownership rate and make housing more accessible, reflecting the Kingdom's commitment to fulfilling the housing needs of its citizens.

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Market Size of Saudi Arabia Residential Real Estate Industry

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Saudi Arabia Residential Real Estate Market Summary
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

Saudi Arabia Residential Real Estate Market 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 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
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Saudi Arabia Residential Real Estate Market Size Summary

The Saudi Arabia residential real estate market is experiencing significant growth, driven by a burgeoning population and a strong demand for housing among young middle-class Saudi nationals and expatriates. The government's initiatives, such as the 2025 Housing Program Strategy, aim to increase homeownership rates and improve housing affordability. These efforts are part of the broader Vision 2030 framework, which seeks to transform the housing sector by making homeownership more accessible through financial support and streamlined processes. The market is characterized by a shift towards off-plan real estate sales, reflecting a growing trend where buyers invest in properties before their completion, based on architectural plans. This approach has gained popularity, with a notable increase in off-plan sales and project approvals in recent years.

The market landscape is fragmented, with numerous players like Jabal Omar Development Company, Al Saeden Holding Company, and Emaar actively participating. The sector is poised for further expansion, supported by mergers and acquisitions that are expected to boost real estate development. Notable projects, such as NEOM's residential communities expansion, highlight the Kingdom's commitment to accommodating its growing workforce and enhancing its urban infrastructure. The influx of new residential units, coupled with government incentives and a focus on affordable housing, underscores the dynamic nature of the Saudi residential real estate market, attracting both local and international investors eager to capitalize on the ongoing boom.

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Saudi Arabia Residential Real Estate Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Current Economic Scenario and Consumer Sentiments

    2. 1.2 Residential Real Estate Buying Trends - Socio-economic and Demographic Insights

    3. 1.3 Government Initiatives and Regulatory Aspects for the Residential Real Estate Sector

    4. 1.4 Insights into Size of Real Estate Lending and Loan to Value Trends

    5. 1.5 Insights into Interest Rate Regime for General Economy and Real Estate Lending

    6. 1.6 Insights into Rental Yields in the Residential Real Estate Market

    7. 1.7 Insights into Capital Market Penetration and REIT Presence in Residential Real Estate

    8. 1.8 Insights into Affordable Housing Support Provided by Government and Public-private Partnerships

    9. 1.9 Insights into Real Estate Tech and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)

    10. 1.10 Impact of COVID-19 on the Market

    11. 1.11 Market Dynamics

      1. 1.11.1 Drivers

      2. 1.11.2 Restraints

      3. 1.11.3 Opportunities

  2. 2. MARKET SEGMENTATION

    1. 2.1 Type

      1. 2.1.1 Condominiums and Apartments

      2. 2.1.2 Villas and Landed Houses

    2. 2.2 Key Cities

      1. 2.2.1 Riyadh

      2. 2.2.2 Jeddah

      3. 2.2.3 Dammam

      4. 2.2.4 Rest of Saudi Arabia

Saudi Arabia Residential Real Estate Market Size FAQs

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.

In 2024, the Saudi Arabia Residential Real Estate Market size is expected to reach USD 187.20 billion.

Saudi Arabia Residential Real Estate Market Report Snapshots

Saudi Arabia Residential Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)