Market Size of Saudi Arabia Condominiums and Apartments Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2020 - 2022 |
CAGR | 7.00 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Condominiums & Apartments Market Analysis
The Saudi Arabia condominiums and apartments market is valued around USD 17 billion in the current year and is anticipated to register a CAGR of greater than 7% during the forecast period.
- Housing demand in Saudi Arabia is anticipated to rise by more than 50% by 2030, reaching 153,000 homes from 99,600 homes in 2021. To reach a housing supply of 4.96 million homes by 2030, the Kingdom needs to build 1.2 million new homes during the next ten years. Over the past ten years, Saudi Arabia has transformed its housing market. Furthermore, by 2030, the Kingdom may reach its goals of having a housing sector that contributes 8.8% of the GDP and a 70% homeownership rate. The sector is moving forward, and the government's strong policies and actions, including the approval to launch diverse financial products and an increase in the standard of living and income, enable luxury homeownership for future generations.
- The country's northern region is the focus of developers and investors looking to build complexes. Shams Ar Riyadh, the largest future residential compound (anticipated to provide over 950 units, villas, and apartments), and Antara residential compound, another sizable development that will produce approximately 520 units, stand out among them. Compounds can be grouped into one of four typologies, A, B, C, or D, often based on the extent of their growth and the quality of the facilities, services, and amenities they provide. Class B compound has a land size between 20,000 and 50,000 Sqm, whereas a Class A compound often has a land area larger than 50,000 sqm. The land space of Class C and B compounds is between 10,000 and 15,000 square meters and 5,000 and 10,000 square meters, respectively. Type A compound's usual apartment and villa sizes are 65 to 140 square meters and 160 to 1,100 square meters, respectively.
Saudi Arabia Condominiums & Apartments Industry Segmentation
A condominium, commonly known as a "condo," is a sizable building complex made up of independent apartments owned separately. Typically, ownership includes a nonexclusive stake in a particular "common property" under the supervision of the condominium. Apartment buildings are usually owned by a single owner (such as a property management company), and the buildings are used solely for rental purposes. However, rented condos to tenants are sometimes referred to as apartments.
The Saudi Arabia condominiums and apartments market is segmented by key cities (Riyadh, Jeddah, Makkah, Dammam Metropolitan Area (DMA), and the Rest of Saudi Arabia). The report offers market size and forecasts for the Saudi Arabia condominiums and apartments market in value (USD billion) for all the above segments.
By City | |
Riyadh | |
Jeddah | |
Dammam Metropolitan Area | |
Other Cities |
Saudi Arabia Condominiums and Apartments Market Size Summary
The Saudi Arabia condominiums and apartments market is experiencing significant growth, driven by a robust demand for housing and supportive government policies. The market is characterized by a diverse range of developments, including large residential compounds such as Shams Ar Riyadh and Antara, which cater to varying standards of living and amenities. The government's initiatives to increase homeownership and enhance the standard of living are pivotal in transforming the housing sector, with a focus on luxury homeownership for future generations. The northern region of the country is a key area for developers and investors, with a notable shift towards multi-dwelling units that offer potential for revenue generation and adaptability to rental models. Despite challenges such as the expat-dependent levy and economic pressures, the rental market is becoming more appealing, with apartments gaining popularity due to new constructions featuring modern amenities.
Riyadh, the capital city, stands out as the main residential hub, with a growing population and increasing urbanization driving demand for housing units, particularly in the affordable segment. The city's strategic location and economic activities make it a commercial hotspot, attracting both Saudis and expatriates. The residential market in Riyadh is witnessing a boom, with significant investments in new developments like the Diriyah Gate Project and King Salman Park neighborhood. The market is fragmented, with major players such as Al Saedan Real Estate and Kingdom Holding Company actively participating. The ongoing merger and acquisition activities are expected to further stimulate the market, encouraging more companies to enter the condominiums and apartments sector.
Saudi Arabia Condominiums and Apartments Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Market Overview
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1.2 Market Dynamics
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1.2.1 Drivers
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1.2.2 Opportunities
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1.2.3 Restraints
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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1.4 Value Chain / Supply Chain Analysis
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1.5 Industry Policies and Regulations
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1.6 Technological Developments in the Sector
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1.7 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By City
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2.1.1 Riyadh
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2.1.2 Jeddah
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2.1.3 Dammam Metropolitan Area
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2.1.4 Other Cities
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Saudi Arabia Condominiums and Apartments Market Size FAQs
What is the current Saudi Arabia Condominiums and Apartments Market size?
The Saudi Arabia Condominiums and Apartments Market is projected to register a CAGR of greater than 7% during the forecast period (2024-2029)
Who are the key players in Saudi Arabia Condominiums and Apartments Market?
Al Saedan Real Estate, Kingdom Holding Company, Ewaan, Al Ra'idah Investment Company and SEDCO Development are the major companies operating in the Saudi Arabia Condominiums and Apartments Market.