Saudi Arabia Residential Real Estate Market Size to Hit USD 130.8 Billion by 2033 | CAGR of 6.9%

Saudi Arabia Residential Real Estate Market Overview

Market Size in 2024: USD 71.8 Billion

Market Size in 2033: USD 130.8 Billion

Market Growth Rate 2025-2033: 6.9%

According to IMARC Group's latest research publication, "Saudi Arabia Residential Real Estate Market Report by Type (Condominiums and Apartments, Villas and Landed Houses), and Region 2025-2033", Saudi Arabia residential real estate market size reached USD 71.8 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 130.8 Billion by 2033, exhibiting a growth rate (CAGR) of 6.9% during 2025-2033.

Growth Factors in the Saudi Arabia Residential Real Estate Market

• Vision 2030 and Government Housing Initiatives

Saudi Arabia’s Vision 2030 is supercharging the residential real estate market by prioritizing housing for all. The Sakani program, backed by the Ministry of Housing, is delivering over 600,000 housing units, with 100,000 already handed over to citizens. Subsidies and low-interest loans—some as low as 0%—are making homeownership accessible, boosting demand. The General Authority for Statistics reports a 7.6% rise in residential rents, reflecting strong market activity. Mega-projects like NEOM and Diriyah Gate are creating new urban hubs, driving up property demand in surrounding areas. These initiatives, coupled with $200 billion in housing investments, are transforming the market, making homeownership a reality for more Saudis and fueling construction across Riyadh, Jeddah, and beyond.

• Economic Diversification and Population Growth

The Kingdom’s push to diversify from oil, with a 4.9% non-oil GDP growth, is pumping life into residential real estate. A growing population—over 32 million, with 70% under 40—creates steady demand for homes, especially in cities like Riyadh, where transaction volumes are up 20%. The influx of expats, drawn by the Regional Headquarters Program, has spiked demand for villas and apartments, with 115,000 new homes needed annually, per Knight Frank. Companies like Dar Al Arkan are launching projects like the 1,000-unit Shams Ar Riyadh, catering to young professionals. Rising disposable incomes, up 5% on average, are also enabling more Saudis to invest in properties, making the sector a cornerstone of economic growth.

• Foreign Investment and Regulatory Reforms

Saudi Arabia’s new Real Estate Ownership and Investment Law, effective January 2026, is opening the market to non-Saudis, sparking a surge in investor interest. This reform, part of Vision 2030, allows foreigners to buy in cities like Riyadh and Jeddah, with real estate stocks and REITs jumping 10% after the announcement. The market, valued at $74.99 billion, is seeing strong foreign direct investment, with firms like Emaar Properties planning 5,000 new units. Low land costs and government-backed incentives, like tax breaks, make the Kingdom attractive. Over 50,000 transactions were recorded in Q2, driven by land sales and new developments. This policy shift is boosting supply and liquidity, positioning Saudi Arabia as a global real estate hub.

Key Trends in the Saudi Arabia Residential Real Estate Market

• Sustainable and Smart Housing

Green living is shaping Saudi Arabia’s residential market, with developers embracing ESG principles. Projects like NEOM’s The Line use solar-powered systems, cutting energy costs by 15%. Over 30% of new developments aim for LEED certification, appealing to eco-conscious buyers. For example, Roshn’s Al-Arous project in Jeddah integrates smart home tech, like AI thermostats, boosting property values by 10%. The Saudi Green Initiative encourages developers to adopt sustainable materials, with 20,000 green homes built so far. Buyers are willing to pay 8% more for energy-efficient properties, per CBRE. This trend aligns with Vision 2030’s goal of sustainable cities, driving demand for homes that blend tech and environmental responsibility, especially in urban centers like Riyadh.

• Rise of Mixed-Use Communities

Mixed-use developments are redefining residential living in Saudi Arabia, blending homes with retail, offices, and leisure spaces. Projects like Diriyah Gate, backed by a $1.53 billion PIF contract, include 3,000 residential units alongside cultural hubs, attracting 500,000 visitors annually. These communities cater to young Saudis, with 60% seeking walkable neighborhoods, per Mordor Intelligence. Developments like Roshn’s Sedra in Riyadh, with 2,500 homes, offer schools and parks, boosting sales by 25%. This trend reflects a shift toward vibrant, connected lifestyles, with 40% of new projects integrating mixed-use elements. It’s driving demand in cities like Jeddah and Dammam, where urban density is rising, and creating investment hotspots for developers.

• Surge in Affordable Housing Demand

Affordable housing is a hot trend, fueled by government programs like Sakani, which has financed 400,000 homes with loans up to SAR 500,000. With 60% homeownership achieved, the focus is on young families and first-time buyers, who make up 65% of demand. Developers like Al Rajhi Real Estate are launching projects like the 2,000-unit Al Jawhara in Dammam, priced 20% below market rates. Transaction volumes for affordable units rose 15% in Q2, per CBRE. Subsidized financing from the SME Bank, disbursing SAR 1.5 billion, is empowering buyers. This trend is reshaping the market, especially in secondary cities like Madinah, where affordable villas are selling out fast, meeting the needs of a growing middle class.

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Saudi Arabia Residential Real Estate Industry Segmentation:

The report has segmented the market into the following categories:

Breakup by Type:

• Condominiums and Apartments
• Villas and Landed Houses

Breakup by Region:

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

Competitive Landscape:

• Jabal Omar Development Company
• Al sedan Holding Company
• Emaar Properties PJSC
• Sedco Development
• Abdul Latif Jameel Property Company Limited
• Christie's International Real Estate
• Coldwell Banker
• Al Habtoor Group L.L.C

Competitive Landscape:

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

Future Outlook

Saudi Arabia’s residential real estate market is set to thrive, driven by Vision 2030’s ambitious goals. With $200 billion in housing investments and 115,000 homes needed annually, supply is scaling up fast. Riyadh, hosting 70% of transactions, will remain the epicenter, while Jeddah and NEOM emerge as new hubs. The 2026 foreign ownership law could attract $10 billion in FDI, boosting liquidity. Developers like Roshn and Dar Al Arkan plan 10,000 new units, with 30% targeting affordable segments. Challenges like rising rents, up 7.6%, and land scarcity persist, but smart city projects and 5,000 km of new infrastructure will ease pressure. With 38% of commercial registrations from youth-led firms, innovation will drive the market, cementing Saudi Arabia’s global real estate stature.

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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.

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