
Study Period | 2024 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 203.62 Billion |
Market Size (2030) | USD 310.00 Billion |
CAGR (2025 - 2030) | 8.77 % |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Residential Real Estate Market Analysis
The Saudi Arabia Residential Real Estate Market size is estimated at USD 203.62 billion in 2025, and is expected to reach USD 310.00 billion by 2030, at a CAGR of 8.77% during the forecast period (2025-2030).
Saudi Arabia's residential real estate sector is experiencing significant transformation, driven by demographic shifts and urbanization trends. As of 2022, the country's population stands at 36.4 million, growing at an annual rate of 1.4%, with a notably young demographic profile where 71.24% of the population falls within the working-age group of 15-64 years. This demographic dividend, combined with the presence of approximately 5.5 million expatriate workers, has created substantial demand for housing across various segments. The market is particularly influenced by young middle-class Saudi nationals who are first-time home buyers, leading to increased demand for affordable housing options.
The government's commitment to increasing homeownership has resulted in remarkable progress through various initiatives and reforms. The transformation is evident in the dramatic reduction of housing support processing time from 15 years to immediate assistance, contributing to a significant increase in homeownership rates from 47% to over 60% by the end of 2022. The 2025 Housing Program Strategy builds upon these achievements, focusing on improving market affordability while working towards the ambitious goal of reaching 70% homeownership among Saudi families by 2030. This strategic approach has fundamentally altered the market dynamics, making residential housing more accessible to a broader segment of the population.
The residential property market landscape is witnessing substantial development activity across major cities, with particular emphasis on affordable housing projects. In Riyadh, the Royal Commission's strategic initiatives aim to transform the city into one of the world's top 10 city economies by 2030, planning to attract 400-500 foreign companies and create up to 40,000 jobs. The real estate sector is adapting to changing consumer preferences, with younger Saudi nationals and expatriates showing increasing interest in apartments and more affordable property options, prompting developers to adjust their project portfolios accordingly.
The market is experiencing a shift in development patterns and financing mechanisms to accommodate evolving consumer needs. Financial institutions and banks are introducing innovative home financing options, while developers are being incentivized to create affordable housing projects. The government's digitization efforts have streamlined property acquisition processes, making it easier for families to access financial support and complete necessary paperwork. This technological integration, combined with public-private partnerships, is creating a more efficient and accessible real estate market that better serves the needs of Saudi Arabia's growing population.
Saudi Arabia Residential Real Estate Market Trends
Government Initiatives and Vision 2030 Housing Goals
The Saudi government's ambitious Vision 2030 housing program has emerged as a primary catalyst for the residential real estate market's growth. In the first half of 2023, the government's Wafi program, responsible for off-plan sales and leasing, licensed 47 new off-plan sales projects, while the number of licenses issued for small and mid-sized projects surged by 139% compared to the same period in the previous year. These initiatives are strategically aligned with the national objective of increasing residential ownership to 70% by 2030, demonstrating the government's commitment to transforming the housing sector through strong policies and multiple finance products.
The implementation of comprehensive housing programs has resulted in tangible outcomes, with the committee approving 79 projects to deliver 1,832 new residential units across all regions nationwide in early 2023. The government's proactive approach is further evidenced by the 130% increase in completed projects during the first six months of 2023, along with a 9% rise in qualified off-plan real estate developers. The success of these initiatives is reinforced by the signing of deals worth over SAR 10 billion on the first day of the Real Estate Future Forum in Riyadh in 2023, highlighting the strong market response to government-led housing development programs.
Population Growth and Urbanization Trends
The rapid urbanization and demographic shifts in Saudi Arabia are creating unprecedented demand for residential properties, particularly in major metropolitan areas. Riyadh's projected population growth of 127% by 2030, expected to reach 17 million residents, is driving substantial development in the capital's residential sector. This demographic expansion is accompanied by changing household dynamics, including a growing number of single-person households and young professionals, which is reshaping the demand patterns for residential properties and influencing development strategies across the Kingdom.
The urbanization trend is further intensified by internal migration patterns, with Saudi nationals and expatriates increasingly relocating to major cities for employment opportunities. This urban concentration has led to the development of new residential construction formats, ranging from traditional villas to high-rise apartment living, reflecting the evolving preferences of the Saudi population. The shift in housing preferences is particularly evident in the rising demand for apartments and townhouses among first-time homebuyers, indicating a significant transformation in the Kingdom's residential real estate landscape.
Enhanced Mortgage Accessibility and Financing Solutions
The transformation of Saudi Arabia's residential mortgage market has become a crucial driver for the residential real estate sector's growth. The government's initiative to activate multiple finance products has significantly improved access to housing finance, making home ownership more attainable for new generations of Saudi citizens. This is evidenced by the substantial increase in mortgage uptake, particularly in major cities, where financial institutions and banks are offering increasingly competitive residential financing options aligned with Islamic banking principles.
The expansion of mortgage accessibility is complemented by the development of innovative residential financing solutions tailored to different income segments. The integration of these financing options with government housing programs has created a more robust ecosystem for residential property acquisition. The success of these initiatives is reflected in the increasing number of first-time homebuyers entering the market, supported by various government-backed mortgage schemes and financial institutions' growing participation in the housing finance sector.
Supply-Demand Market Dynamics
The Saudi Arabian residential real estate market is characterized by a significant supply-demand imbalance, with a national shortfall of nearly 1.5 million units recorded in 2022. This substantial gap is driving intensive residential development activity across the Kingdom, with plans to deliver approximately 555,000 new residential units in 2022 and an additional 200,000 units projected by 2030. The market dynamics have attracted considerable residential investment interest, particularly in off-plan sales, which witnessed a 52% increase in the first six months of 2023 compared to the same period in 2021.
The supply-demand dynamics are further influenced by the evolving preferences of homebuyers and the need for diverse housing options. Developers are responding to this market condition by creating integrated residential development communities that cater to different segments of the population. The strong investor appetite is evidenced by the increasing number of real estate developers entering the market, with an additional 174 off-plan real estate developers becoming eligible for different projects in early 2023, demonstrating the market's potential for sustained growth and development.
Segment Analysis: By Type
Condominiums and Apartments Segment in Saudi Arabia Residential Real Estate Market
The condominiums and apartments segment dominates the Saudi Arabian residential real estate market, accounting for approximately 58% of the total market value in 2024. This segment's strong performance is primarily driven by increasing urbanization and changing preferences among Saudi citizens who are increasingly accepting apartments as viable first-home options due to their relative affordability. The segment has shown remarkable growth in major cities, with apartment values in Riyadh and Jeddah demonstrating the fastest pace of growth in recent years. The rising demand is particularly notable in urban centers where apartment sales prices have experienced significant appreciation, especially in the capital Riyadh and Jeddah. This trend is further supported by government initiatives and the development of integrated urban communities that focus on apartment complexes to meet the growing housing demand in major metropolitan areas.

Villas and Landed Houses Segment in Saudi Arabia Residential Real Estate Market
The Villas and Landed Houses segment is projected to grow at approximately 8% during the forecast period 2024-2029, emerging as the fastest-growing segment in the Saudi Arabian residential real estate market. This robust growth is primarily driven by the government's focus on the real estate sector as part of the economic diversification process under Vision 2030. The segment's expansion is particularly evident in premium luxury residential areas where new villa projects are being developed with modern amenities and smart home features. The growth is further supported by various government initiatives and housing programs that aim to increase residential property ownership among Saudi nationals. The segment is witnessing significant developments in major cities like Riyadh, Jeddah, and Dammam, where new villa communities are being constructed with comprehensive infrastructure and modern design elements to meet the evolving preferences of Saudi families.
Saudi Arabia Residential Real Estate Industry Overview
Top Companies in Saudi Arabia Residential Real Estate Market
The residential real estate market in Saudi Arabia is characterized by continuous innovation and strategic developments from major players like Dar Al Arkan, Jabal Omar Development Company, SEDCO Development, Abdul Latif Jameel, and Rafal. These companies are increasingly focusing on sustainable development practices and smart building technologies while expanding their project portfolios. The industry has witnessed a significant shift towards digital transformation, with companies investing in residential real estate services and online platforms to enhance customer experience. Market leaders are forming strategic partnerships with technology providers and international firms to strengthen their capabilities in project delivery and asset management. Companies are also diversifying their offerings across different price segments and introducing innovative financing solutions to cater to varying customer needs. The trend towards mixed-use developments and integrated communities has become prominent, with developers incorporating modern amenities and lifestyle features into their projects.
Market Structure Shows Dynamic Growth Potential
The Saudi residential real estate market exhibits a consolidated structure dominated by well-established local conglomerates with strong government relationships and extensive land banks. These major players have significant advantages in terms of capital access, project execution capabilities, and market knowledge, making it challenging for new entrants to gain substantial market share. The market has seen increased participation from international firms through joint ventures and partnerships, particularly in large-scale development projects aligned with Vision 2030 objectives. The industry is witnessing a gradual shift from traditional family-owned businesses to more professionally managed corporate entities, with several companies adopting modern governance structures and operational practices.
The market is experiencing strategic consolidation through mergers, acquisitions, and partnerships, particularly in the residential property management and proptech segments. Real estate investment trusts (REITs) have emerged as significant players, providing new avenues for market participation and investment. The government's push for public-private partnerships has created opportunities for collaboration between developers, fostering market maturity and professionalism. International consulting firms and property management companies are increasingly establishing their presence, bringing global best practices and expertise to the market.
Innovation and Adaptation Drive Future Success
Success in the Saudi residential real estate market increasingly depends on companies' ability to adapt to changing consumer preferences and technological advancements. Developers who can integrate sustainable building practices, smart home technologies, and digital customer interfaces are better positioned for long-term growth. The ability to navigate regulatory requirements, particularly those related to housing programs and financing initiatives under Vision 2030, has become crucial for market success. Companies that can effectively partner with government entities and participate in affordable housing initiatives while maintaining profitability are likely to gain competitive advantages.
Market players need to focus on developing distinctive value propositions and operational excellence to maintain their competitive edge. This includes investing in customer relationship management systems, adopting advanced construction technologies, and developing innovative financing solutions. The increasing emphasis on quality of life and community development requires developers to create more comprehensive and integrated living environments. Companies must also build resilience against market cycles through diversified project portfolios and robust risk management practices. Success factors include the ability to attract and retain skilled professionals, maintain strong relationships with contractors and suppliers, and effectively manage project costs while delivering high-quality products. The role of residential brokerage and residential leasing is also becoming more prominent as companies seek to optimize their residential investment strategies and capitalize on market opportunities.
Saudi Arabia Residential Real Estate Market Leaders
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Jabal Omar Development Company
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Al sedan Holding Company
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Emaar
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Sedco Development
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Abdul Latif Jamal
- *Disclaimer: Major Players sorted in no particular order

Saudi Arabia Residential Real Estate Market News
- September 2023: Emaar Properties has the potential to develop residential communities in the Kingdom of Saudi Arabia. Emaar could begin construction of a 4,000-unit housing project.
- June 2023: The first phase of NEOM’s residential communities expansion is one of the world’s largest international PPPs for accommodation, with the total value of the social infrastructure project amounting to more than SAR 21 billion (USD 5.60 billion). NEOM announced that it had finalized contracts with investors to build the residential communities, which will accommodate the growing workforce of the region. Leading Saudi Arabian companies such as Alfanar Global Development (AGL), AARMAL real estate investment company (AREIC), and NESMA Holding Co. (NSC) participated in the first phase, as well as Tamasuk, which was involved through two separate partners (Amlal Al Arab i Alabi Group Company (AALG) and SAMCO).
Saudi Arabia Real Estate Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
- 4.1 Current Economic Scenario and Consumer Sentiments
- 4.2 Residential Real Estate Buying Trends - Socio-economic and Demographic Insights
- 4.3 Government Initiatives and Regulatory Aspects for the Residential Real Estate Sector
- 4.4 Insights into Size of Real Estate Lending and Loan to Value Trends
- 4.5 Insights into Interest Rate Regime for General Economy and Real Estate Lending
- 4.6 Insights into Rental Yields in the Residential Real Estate Market
- 4.7 Insights into Capital Market Penetration and REIT Presence in Residential Real Estate
- 4.8 Insights into Affordable Housing Support Provided by Government and Public-private Partnerships
- 4.9 Insights into Real Estate Tech and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)
- 4.10 Impact of COVID-19 on the Market
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4.11 Market Dynamics
- 4.11.1 Drivers
- 4.11.2 Restraints
- 4.11.3 Opportunities
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Condominiums and Apartments
- 5.1.2 Villas and Landed Houses
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5.2 Key Cities
- 5.2.1 Riyadh
- 5.2.2 Jeddah
- 5.2.3 Dammam
- 5.2.4 Rest of Saudi Arabia
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration
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6.2 Company Profiles
- 6.2.1 Jenan Real Estate Company
- 6.2.2 Ewaan Co. Ltd
- 6.2.3 Sedco Development
- 6.2.4 Jabal Omar
- 6.2.5 Emaar
- 6.2.6 Sedco Development
- 6.2.7 Abdul Latif Jamal
- 6.2.8 Rafal
- 6.2.9 Al Sedan
- 6.2.10 Dar Al Arkan
- 6.2.11 Alfirah United Company for Real Estate
- 6.2.12 AL Nassar*
- *List Not Exhaustive
7. FUTURE OF THE MARKET AND ANALYST RECOMMENDATIONS
8. APPENDIX
Saudi Arabia Residential Real Estate Industry Segmentation
Residential real estate is an area developed for people to live in. As defined by local zoning ordinances, residential real estate cannot be used for commercial or industrial purposes.
This report aims to provide a detailed analysis of the Saudi Arabian residential real estate market. It focuses on the market dynamics, technological trends, insights, government initiatives taken in the residential real estate sector, and the impact of COVID-19 on the market.
The residential real estate market in Saudi Arabia is segmented by type (condominiums and apartments and villas and landed houses) and key cities (Riyadh, Jeddah, Dammam, and the rest of Saudi Arabia). The report offers the Saudi Arabia residential real estate market size in value (USD) for all the above segments.
Type | Condominiums and Apartments |
Villas and Landed Houses | |
Key Cities | Riyadh |
Jeddah | |
Dammam | |
Rest of Saudi Arabia |
Saudi Arabia Real Estate Market Research FAQs
How big is the Saudi Arabia Residential Real Estate Market?
The Saudi Arabia Residential Real Estate Market size is expected to reach USD 203.62 billion in 2025 and grow at a CAGR of 8.77% to reach USD 310.00 billion by 2030.
What is the current Saudi Arabia Residential Real Estate Market size?
In 2025, the Saudi Arabia Residential Real Estate Market size is expected to reach USD 203.62 billion.
Who are the key players in Saudi Arabia Residential Real Estate Market?
Jabal Omar Development Company, Al sedan Holding Company, Emaar, Sedco Development and Abdul Latif Jamal are the major companies operating in the Saudi Arabia Residential Real Estate Market.
What years does this Saudi Arabia Residential Real Estate Market cover, and what was the market size in 2024?
In 2024, the Saudi Arabia Residential Real Estate Market size was estimated at USD 185.76 billion. The report covers the Saudi Arabia Residential Real Estate Market historical market size for years: 2024. The report also forecasts the Saudi Arabia Residential Real Estate Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Saudi Arabia Residential Real Estate Market Research
Mordor Intelligence delivers a comprehensive analysis of the residential real estate sector in Saudi Arabia. This analysis covers everything from residential property trends to residential construction developments. Our extensive research encompasses various housing segments, including affordable housing, luxury residential properties, apartments, townhouses, and condominiums. The report provides detailed insights into residential property management practices and residential development patterns. It also highlights emerging trends in urban housing and suburban housing markets. All this information is available in an easy-to-download report PDF format.
The analysis benefits stakeholders across the residential real estate services spectrum. This includes those involved in new home construction, as well as professionals in residential brokerage and residential leasing. Our report examines crucial aspects such as residential mortgage trends, residential investment opportunities, and residential real estate financing options. The comprehensive coverage includes a detailed analysis of primary housing and secondary housing markets, residential rental dynamics, and residential renovation trends. These insights provide valuable information for decision-makers in the Saudi Arabian housing sector. The report offers an in-depth evaluation of market value of home metrics and residential property valuations, supporting strategic planning and market positioning.