Saudi Arabia Real Estate Market Size To Hit $132.65 Billion By 2033: Trends & Outlook

Market Size in 2024: USD 72.11 Billion

Market Size in 2033: USD 132.65 Billion

Market Growth Rate 2025-2033: 7.0%

According to IMARC Group's latest research publication, “Saudi Arabia Real Estate Market Size, Share, Trends and Forecast by Property Type and Region, 2025-2033” , The Saudi Arabia real estate market size was valued at USD 72.11 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 132.65 Billion by 2033, exhibiting a CAGR of 7.0% during 2025-2033.

Growth Factors in the Saudi Arabia Real Estate Market

• Population Growth and Urbanization

One of the biggest factors powering Saudi Arabia's real estate growth right now is the booming population and rapid urban migration. With nearly 35 million residents, the nation is seeing a steadily rising demand for both housing and commercial properties, especially in major urban centers like Riyadh and Jeddah. The government's goal to boost homeownership to 70% means massive investment in new developments, including an ambitious target to deliver more than 300,000 new homes across the Kingdom. This pressure from a young, urbanizing population translates into greater opportunity for developers, making residential real estate the dominant segment-accounting for about 70% of the total market. The increased appetite for modern villas, townhouses, and luxury apartments is driving property values higher and keeping the sector vibrant.

• Major Government Initiatives and Economic Diversification

Bold government action is another key force behind the real estate surge. Vision 2030 and its related National Housing Program are channeling billions into infrastructure, smart city projects, and homebuyer support-turning Saudi Arabia into a magnet for investment. Programs like Sakani now offer citizens accessible financing, grants, and mortgages, opening homeownership to more people. Deals worth $8.2 billion were struck by the National Housing Company in partnership with public and private entities, ramping up supply and construction efficiency. The policy shift to allow greater foreign ownership from 2026, plus support for innovation in real estate tech and flexible zoning, create a more dynamic, transparent, and investor-friendly market. Alongside economic diversification efforts moving Saudi Arabia away from oil dependency, these reforms are unlocking new streams of capital and reinforcing the sector's foundational role in national growth.

• Mega-Projects and Investment Boom

Saudi Arabia's status as a mega-project powerhouse is having a direct and dramatic impact on the real estate sector. Projects like NEOM, the Red Sea Development, Qiddiya, and Riyadh's new city expansions aren't just global headlines-they're driving record levels of real estate spending and job creation. For example, the NEOM region is expected to house up to 9 million people and is attracting $1.22 billion in private sector residential investment this year alone. Infrastructure spending is off the charts, with $29.5 billion in construction contracts awarded and cities like Riyadh launching over 150,000 residential units recently. These developments generate sustained demand for homes, offices, hotels, and retail, while innovative supply chain partnerships and off-site construction boost delivery efficiency. The result: unprecedented scale and momentum for local and international real estate players across every property segment.

Key Trends in the Saudi Arabia Real Estate Market

• Rise of Smart and Sustainable Developments

A defining trend in Saudi real estate is the move toward smart, connected communities and greener buildings. Tech-driven, sustainable construction is now the norm rather than the exception, with government rules and major projects weaving digital infrastructure, AI, renewable energy, and energy-efficient design into neighborhoods and office parks. Developers are rolling out smart home features, intelligent parking, solar panels, and IoT-powered building management. In NEOM and other flagship projects, entire districts are being built to net-zero carbon standards, reflecting growing demand from both residents and global investors for tech-savvy, future-proofed environments. This shift is not only making Saudi cities more attractive but is also raising the bar for what buyers and tenants expect out of their real estate assets.

• Opening to Global Investors and Foreign Buyers

Regulation changes are lighting a fire under the Saudi real estate market by making it far easier for foreigners to invest and own property. New laws allow global buyers direct access to residential and even some sensitive sectors, increasing competition and capital inflows. Interest from foreign funds and multinational developers is rising, especially in luxury and commercial segments, as Saudi property offers stable returns and world-class amenities. On the practical side, easier bank lending, longer mortgages for first-time buyers, and government-backed guarantees ensure that more people-both Saudis and expats-can afford to buy or invest. The market is watching closely as further liberalization is expected in 2026, which promises to inject even more variety and sophistication into the real estate mix.

• The Influence of Mega-Events and Tourism

The run-up to mega-events like EXPO 2030 and the FIFA World Cup 2034, along with the tourism goals of Vision 2030, are re-shaping the entire real estate landscape. This influx of visitors and temporary residents is creating a boom in hospitality, retail, and short-stay apartments, and putting hotels, serviced residences, and entertainment venues in high demand. Cities hosting these global showcases are rapidly building mixed-use complexes and business districts, aiming to support both international tourism and the surge in local room nights. These events are a powerful magnet for infrastructure investment-airports, metro lines, business hubs-and are fostering broader urban renewal, all of which feeds directly into sustained real estate sector growth.

Saudi Arabia Real Estate Industry Segmentation:

The report has segmented the market into the following categories:

Analysis by Property Type:

• Residential Real Estate
  • Apartments
  • Villas
  • Others
• Commercial Real Estate
  • Offices
  • Retail
  • Hospitality
  • Others

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

• Abdul Latif Jameel
• Dar Ar Alkan
• Emaar
• Jabal Omar Development Company
• Jenan Real Estate Company
• Kingdom Holdings Company
• SEDCO Development (SEDCO Holding)

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Future Outlook

Looking ahead, the Saudi real estate industry is set to keep its strong momentum as it transitions into one of the world's most dynamic property markets. Growing population pressure and a swelling middle class will keep demand for housing and lifestyle amenities robust, while regulatory reforms and digital transformation continue to pull in foreign investors. Mega-projects will accelerate the pace of urban expansion, providing a constant flow of new opportunities for developers and service providers alike. Improved financing options and government-backed programs will help more Saudis achieve homeownership, boosting stability and social cohesion. With a focus on sustainability, global standards, and smart infrastructure, Saudi Arabia is positioning itself not just as a regional leader, but as a new benchmark for ambition and innovation in real estate worldwide.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

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