In recent years, the real estate market in the Kingdom of Saudi Arabia has witnessed significant development in light of the ongoing efforts to diversify the Saudi economy. In 2024, the market achieved qualitative leaps driven by huge projects such as NEOM and the high demand for residential and commercial units. With the beginning of 2025, expectations show more expansion, innovation, and the trend toward smart and sustainable cities. 

This article will examine the real estate market in 2024 and the forecast for 2025.

Features of the real estate market in Saudi Arabia 

The Saudi real estate market is one of the most important and largest markets, especially with the ambitious 2030 vision, in addition to being supported by the Kingdom through a range of administrative and investment facilities with a variety of investment opportunities between residential properties such as apartments and villas, commercial properties such as shops and malls, or investment in land.

This makes investing in real estate in Saudi Arabia a promising opportunity for all investors. The most in-demand areas in the Kingdom include the following: 

• Riyadh:  The capital of the Kingdom is becoming more important, but infrastructure development, especially in the northern regions, has increased demand. 

• Jeddah: Some areas in Jeddah are experiencing high demand due to being a coastal city as well as the services available in Jeddah. 

• Dammam: Demand is high in the eastern neighborhoods due to its proximity to the sea and the availability of services.

Market Overview of the Real Estate Market in 2024

The real estate industry in Saudi Arabia is continuously evolving driven by Vision 2030 and the most prominent industry trends in 2024 include the following:

• Increased demand for residential properties:

 With the rise in population growth, especially in major cities such as Riyadh, Jeddah, and Dammam, and government support through programs such as Sakani, the demand for residential properties has increased, which has affected property prices and helped citizens to seek home ownership. 

• Sustainability: 

Environmental awareness of the importance of sustainability is increasing, so the demand for sustainable projects and demand for building residential and commercial complexes with environmentally friendly technologies such as solar energy systems and renewable energy has increased. 

• Technological development:

 Technological development has contributed to the growth of the property market, which has led to a sophisticated digital transformation with the use of artificial intelligence and virtual reality applications that offer virtual tours of properties, contributing to better investment decisions 

• Foreign investment:

 The Kingdom provides a favorable environment for international investors through large projects such as NEOM and the Red Sea, and these projects provide opportunities for real estate investment through increased investment in major tourism projects, which enhances the Kingdom’s growth in the tourism and economic sector.

2024 witnessed stability and significant growth in the real estate sector, especially in residential properties with the demand for sustainable projects, and technological development has helped investors make better decisions  

Real Estate Market Challenges and Expectations in 2025 

By the beginning of 2025, Saudi Arabia’s real estate market is expected to continue to grow, providing investment opportunities, especially in residential and commercial properties: 

• Rising demand for residential units with population growth and migration to major cities leading to higher property prices
• Investment in commercial real estate expands with economic growth to meet the needs of individuals and businesses 
• The growth of tourism, which increases the demand for hotels and tourism facilities.

The most important challenges expected this year include: 

• Rising interest rates, which affect the purchasing power of some citizens and their ability to obtain property financing 
• Rising construction costs and raw materials 
• Competition between investors and developers 

To take advantage of the opportunities and face the challenges, investors must keep up with the technological development in the real estate industry focus on mixed-use projects to meet the needs of the market, and develop sustainable projects that rely on renewable energy and green buildings to achieve Vision 2030.

In conclusion, after taking a look at the real estate market for the year 2024, shows remarkable developments thanks to economic reforms and the Kingdom’s Vision 2030, with increasing demand for residential units and commercial projects, which reflects the government’s success in supporting the sector through programs such as (Sakani) and investments in mega projects such as NEOM, and these developments are expected to continue in the current year 2025 with increasing real estate investment opportunities and providing various investment options. 

Frequently Asked Questions: 

• Is it recommended to buy property now?

In 2025, expectations indicate that the property sector is in continuous growth which may make it a good investment especially with the property in Saudi Arabia not decreasing due to the increase in demand so it is better to buy at that stage to avoid the increase. 

• Does buying a property in Saudi Arabia grant residency?

Property owner residency can be obtained after owning a property worth at least SAR 4 million

• Is real estate the best investment?

Real estate is one of the safest types of investments as it is a tangible asset for individuals, unlike other investments such as stocks, which are intangible assets.