Saudi Arabia Residential Real Estate Market Size

Saudi Arabia Residential Real Estate Market Analysis

The Saudi Arabia Residential Real Estate Market size is estimated at USD 187.20 billion in 2024, and is expected to reach USD 284.90 billion by 2029, growing at a CAGR of 8.77% during the forecast period (2024-2029).

Saudi Arabia currently has a population of 36.4 million, which is growing by more than 1.4% annually in 2022. It is dominated by young middle-class Saudi Arabians who are first-time homebuyers. In 2022, the population aged 0 to 14 years was 25.95 percent, the population aged 15 to 64 years was 71.24 percent, and the population aged 65 and over was 2.81 percent. The demand from expatriates has further intensified the housing shortage, with about 5.5 million ex-pat workers in the country. With younger Saudi nationals and expatriates displaying a preference for apartments and more affordable properties, the government is taking steps such as incentivizing developers to build affordable housing projects and encouraging banks to introduce more home financing options. To fulfill its ambition of increasing homeownership by Saudi Arabian nationals, the 2025 Housing Program Strategy builds on the achievements of the first phase. The second phase focuses on improving the overall affordability of the Saudi housing market and continues to increase the homeownership rate among Saudi families to 70% by 2030.

Prior to Vision 2030, housing support could take up to 15 years for families in Saudi Arabia. Today, housing support is immediate. Families are the lifeblood of a society, and the Kingdom recognizes the desire of every family to own a home – a safe haven, a place to build memories and celebrate milestones. By making it easier to access financial support, simplifying procedures and digitizing paperwork, homeownership rose from 47% to over 60% by the end of 2022.