Saudi Arabia’s real estate market is one of the most developed and dynamic in the region, influenced by both the local economy and social factors, making it an exciting investment arena.

This guide aims to provide an in-depth understanding of real estate in Saudi Arabia by explaining the current situation and indicators of the sector’s development and shifts.

How has the real estate market in Saudi Arabia evolved?

There are focused efforts by the Saudi government to support and promote the Saudi real estate sector within the vision 2030. The residential real estate market is supported and thriving due to the incentives provided by the government to support social housing projects, which amount to more than 255 projects and are characterized by their affordable prices for a large segment of society.

There is also a remarkable development in the financing methods in the field and an improvement in the licensing system that investors apply for. The factors influencing the dynamics of the property market in Saudi Arabia are as follows:

• Government efforts and legislative changes ease investment and financing in the real estate market, which attracts investors and improves ownership opportunities.

• The Kingdom’s demographics are changing, with the population now exceeding 32 million, which is reflected in the direction of the real estate market, as the increase in population means increased demand for residential and commercial properties, and leads to higher prices in some cases.
• Sustainable growth in the sector is now tangible in the huge projects that are currently being worked on to raise the quality of life and housing in the real estate market in Saudi Arabia, such as the Neom City project.
• The rate of investment in the real estate sector is reflected in the number of property development projects thus increasing the supply of units.

What is the future of real estate in Saudi Arabia?

According to Mordor Intelligence, the real estate market size in 2024 is estimated at $69.51 billion. It is projected to grow to $101.62 billion by 2029, at a CAGR of 8% over the period 2024-2029.

The Minister of Municipalities and Housing, Majid Al Haqeel, explained that the real estate sector will impact the country’s GDP by 8.8 % as a whole by 2030. In addition to increasing the percentage of workers in the real estate sector from companies, real estate offices, individuals, and developers by 80% growth, leading to the creation of more job opportunities in this sector by 2.57% as an annual percentage by 2030.

How to start investing in real estate?

The Saudi real estate market is an attractive destination for investors from what we see from the boom in the level of real estate development and the expected growth estimates, which encourages investors to invest in it and explore opportunities, we recommend the following to start investing and build your real estate portfolio:

• Research and familiarize yourself with the local market and understand its developments and economic and political conditions.
• Take advantage of experienced real estate experts and consultants to get a deeper insight into the market and better guide your investment.
• Determine the goal of the investment and study the expected return of the currently available opportunities compared to the invested Capital.
• Consult an accredited real estate valuation company such as Aain Real Estate Valuation to study investment opportunities and find out the highest return and best use.

When will the price of real estate in Saudi Arabia drop?

This is a debatable question and many people are waiting for prices to drop, especially in the residential property market as an opportunity to take advantage of the real estate market in Saudi Arabia and own their property. However, current indicators and expert opinions do not point to an imminent drop in the price of property due to the excess of demand over supply and high bank interest rates.

In the end, Saudi Arabia’s real estate market remains one of the most developed and vibrant markets in the region. It is witnessing a boom that makes it a favorite among investors.