Saudi Arabia’s real estate sector has witnessed unprecedented growth in 2024, fueled by strong demand, government reforms, and a boom in housing and commercial developments.
📊 Key Market Insights
📌 The Real Estate Price Index surged 3.6% year-on-year in Q4 2024.
📌 The residential sector saw a 3.1% price increase, indicating sustained housing demand.
📌 The market is expected to reach $69.51 billion in 2024, with a projected 8% CAGR leading to $101.62 billion by 2029.
🏗️ What’s Driving This Growth?
1️⃣ Vision 2030 Infrastructure Investments
Saudi Arabia has launched massive housing and infrastructure projects to meet the needs of a growing population and expanding urban centers.
2️⃣ Strong Demand in Riyadh & Mecca
- Riyadh accounts for 60% of all real estate transactions.
- Mecca follows with 19%, largely due to religious tourism and new hospitality developments.
3️⃣ Foreign Direct Investment (FDI) Boom
The Saudi government has eased foreign ownership regulations, increasing international investor interest in residential, commercial, and hospitality real estate.
🌟 Future Outlook
The Saudi government plans to increase homeownership rates to 70% by 2030, making the real estate sector a key pillar of economic transformation. With rising demand, increasing FDI, and strong government backing, Saudi Arabia is set to become one of the fastest-growing real estate markets globally.
🔗 Read more on Arab News: Saudi Property Market Expansion