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

The Saudi Arabia luxury residential real estate market is projected to experience growth over the forecast period, with a focus on the northern regions for new developments. The market's expansion is driven by the development of large residential compounds, which are categorized into different classes based on their size and the amenities offered. Class A compounds, in particular, offer extensive land areas and a wide range of services, contributing significantly to the market's overall capacity. The demand for high-end rentals in these compounds remains strong, with occupancy rates reflecting a healthy market environment.

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Market Size of Saudi Arabia Luxury Residential Real Estate Industry

Saudi Arabia Luxury Residential Real Estate Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 14.63 Billion
Market Size (2029) USD 15.76 Billion
CAGR (2024 - 2029) 6.00 %
Market Concentration Medium

Major Players

Saudi Arabia Luxury Residential Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

Saudi Arabia Luxury Residential Real Estate Market Analysis

The Saudi Arabia Luxury Residential Real Estate Market size is estimated at USD 14.63 billion in 2024, and is expected to reach USD 15.76 billion by 2029, growing at a CAGR of 6% during the forecast period (2024-2029).

Developers and investors are targeting the northern part of the country to develop compounds. Prominent among them is Shams Ar Riyadh, which would be the most significant upcoming residential compound (expected to deliver around 950 units, villas, and apartments). Antara residential compound is another large-size development, offering about 520 units.

  • Compounds can be categorized into four typologies, A, B, C, and D, depending on the scale of development and the level of services, facilities, and amenities they offer. Class A compounds usually include a land area greater than 50,000 sq m, while class B has a land area between 20,000 - 50,000 sq m.
  • Meanwhile, class C & B compounds' land areas range between 10,000 - 15,000 sq m and 5,000 - 10,000 sq m, respectively. The typical size for an apartment and villa in a type A compound varies from 65 to 140 sq m and 160 sq m to 1,100 sq m, respectively.
  • In addition, this category includes the highest area per unit. It offers additional services and facilities like housekeeping, shuttle service, internet, school, clinic, sports court, special security services, mini market, banquet halls, library, gift shop, and a barbershop.
  • Apartments and villas in class A compound command average annual rentals of SAR 80,000 (USD 21,269) to SAR 250,000 (USD 66,463) and SAR 160,000 (USD 42,536) to SAR 480,000 (USD 1,27,610), respectively, while observing an average occupancy rate of 86%.
  • Based on this, rentals per square meter for apartments and villas translate to SAR 900 (USD 239) for 2,200 per sq m and SAR 800 (USD 212) for 1,600 per sq m, respectively. Similarly, rentals for apartments and villas in class B compounds range between SAR 750 (USD 199.49) for 2,000 per sq m and SAR 850 (USD 226.08) for 1,450 per sq m, respectively. In contrast, average annual rentals vary from SAR 76,000 (USD 20,214) to SAR 220,000 (USD 58,515) and SAR 130,000(USD 34,577) to SAR 400,000 (USD 1,06,392.60) for apartments and villas, respectively. Both class A and B compounds command a healthy occupancy rate of around 86% - 87%.

Saudi Arabia Luxury Residential Real Estate Industry Segmentation

Luxury residential real estate refers to properties exclusively designed for human occupation, which provide charm and resort-like living with high-end amenities.

Saudi Arabia's luxury residential real estate market is segmented by type (apartments and condominiums and villas and landed houses) and by key cities (Riyadh, Jeddah, Makkah, Dammam Metropolitan Area (DMA), and Other Cities). The report offers market size and forecasts for the Saudi Arabian Luxury Residential Real Estate Market in value (USD) for all the above segments.

By Type
Apartments and Condominiums
Villas and Landed Houses
By City
Riyadh
Jeddah
Dammam Metropolitan Area
Other Cities
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Saudi Arabia Luxury Residential Real Estate Market Size Summary

The Saudi Arabia luxury residential real estate market is poised for steady growth, driven by strategic developments and increasing demand for high-end living spaces. The market is characterized by a focus on large-scale residential compounds, particularly in the northern regions of the country, with notable projects like Shams Ar Riyadh and Antara residential compound leading the charge. These compounds are categorized into different classes based on their scale and the level of amenities offered, with Class A compounds providing extensive services such as housekeeping, security, and recreational facilities. Despite economic challenges and a shift in demand from apartments to villas, the market continues to attract investment, with new developments introducing modern apartments that cater to the evolving preferences of residents.

Riyadh, as the capital and largest city, remains a central hub for luxury residential real estate, with its strategic location and economic activities drawing both local and expatriate populations. The market is fragmented, with numerous players and increasing merger and acquisition activities expected to further stimulate development. While rental rates for villas have seen a decline due to factors like the white land tax, the demand for apartments is on the rise, particularly in central and eastern areas where land availability is higher. Major real estate companies, including Al Saedan Real Estate and Kingdom Holding Company, are actively involved in shaping the market, with significant projects underway to enhance Riyadh's status as a key business and residential destination.

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Saudi Arabia Luxury Residential Real Estate Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Dynamics

      1. 1.2.1 Market Drivers

        1. 1.2.1.1 Rising Disposable Incomes

        2. 1.2.1.2 Government Initiatives

        3. 1.2.1.3 Growing Expatriate Population

      2. 1.2.2 Restraints

        1. 1.2.2.1 Regulatory Framework

        2. 1.2.2.2 The Risk of Oversupply

      3. 1.2.3 Opportunities

        1. 1.2.3.1 Investing in New Luxury Residential Developments

        2. 1.2.3.2 Targetting the Expatriate Market

        3. 1.2.3.3 Providing Value-added Services

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Consumers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitutes

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Policies and Regulations

    6. 1.6 Technological Developments in the Sector

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Apartments and Condominiums

      2. 2.1.2 Villas and Landed Houses

    2. 2.2 By City

      1. 2.2.1 Riyadh

      2. 2.2.2 Jeddah

      3. 2.2.3 Dammam Metropolitan Area

      4. 2.2.4 Other Cities

Saudi Arabia Luxury Residential Real Estate Market Size FAQs

The Saudi Arabia Luxury Residential Real Estate Market size is expected to reach USD 14.63 billion in 2024 and grow at a CAGR of 6% to reach USD 15.76 billion by 2029.

In 2024, the Saudi Arabia Luxury Residential Real Estate Market size is expected to reach USD 14.63 billion.

Luxury Residential Real Estate Market in Saudi Arabia Report Snapshots

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