Saudi Arabia Luxury Residential Real Estate Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

The Saudi Arabia's Luxury Residential Real Estate Market is segmented by Type (Apartments and Condominiums, Villas, and Landed Houses), and by Key Cities (Riyadh, Jeddah, Makkah, Dammam Metropolitan Area (DMA), and the Rest of Saudi Arabia). The report offers market size and forecasts for the Saudi Arabia Luxury Residential Real Estate Market in value (USD Billion) for all the above segments.

Market Snapshot

Saudi Arabia Luxury Residential Real Estate
Study Period: 2018-2027
Base Year: 2021
CAGR: >5 %

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Market Overview

Saudi Arabia's Luxury Residential Real Estate Market is expected to register a CAGR of more than 5% during the forecast period (2022-2027).

As of December 2021, Saudi Arabia's luxury residential real estate market has begun to show an overall improvement in business activity following the downturn caused by COVID-19. After a deep contraction in 2020, Saudi Arabia's economy is on a recovery path as new COVID-19 cases stabilize at manageable levels, global conditions improve, and the national vaccination program gains momentum. Property tax relaxations, meeting labor shortages, and affordable housing programs under various stimulus packages have been crucial factors of success for luxury residential real estate companies across Saudi Arabia.

Developers and investors are targeting the northern part of the Country to develop compounds. Prominent among them is Shams Ar Riyadh, which would be the largest upcoming residential compound (expected to deliver around 950 units, villas, and apartments), and Antara residential compound, another large-size development, which will deliver around 520 units.

Compounds can be categorized into four different typologies, namely A, B, C, and D, typically depending upon the scale of development, level of services, facilities, and amenities they offer. Class A compound usually has a land area greater than 50,000 Sqm, while a Class B compound has a land area between 20,000 - 50,000 Sqm. Meanwhile, in Class C & B compounds, the land area ranges between 10,000 - 15,000 Sqm and 5,000 - 10,000 Sqm, respectively. The typical size for an apartment and villa in a Type A compound varies from 65 to 140 Sqm and 160 Sqm to 1,100 Sqm, respectively. In addition, this category has the largest area per unit and offers additional services and facilities like housekeeping, shuttle service, internet, school, clinic, sports court, special security services, mini market, banquet halls, library, gift shop, and a barbershop.

Apartments and villas in Class A compound command average annual rentals of SAR 80,000 - 250,000 and SAR 160,000 - 480,000, respectively, while observing an average occupancy rate of 86%. Based on this, rentals per square meter for apartments and villas translate to SAR 900 – 2,200 per Sqm and SAR 800 – 1,600 per Sqm, respectively. Similarly, rentals for apartments and villas in class B compounds range between SAR 750 – 2,000 per Sqm and SAR 850 – 1,450 per Sqm, respectively, whereas average annual rentals vary from SAR 76,000 - 220,000 and SAR 130,000 - 400,000 for apartments and villas respectively. Both class A and B compounds command a healthy occupancy rate of around 86% - 87%.

Scope of the Report

Luxury Residential real estate refers to properties that are exclusively designed for human occupation, which provide charmed and resort life with high-end amenities. Saudi Arabia's Luxury Residential Real Estate Market is segmented by Type (Apartments and Condominiums, Villas, and Landed Houses), and by Key Cities (Riyadh, Jeddah, Makkah, Dammam Metropolitan Area (DMA), and the Rest of Saudi Arabia. The report offers market size and forecasts for the Saudi Arabia Luxury Residential Real Estate Market in value (USD Billion) for all the above segments.

By Type
Apartments and Condominiums
Villas and Landed Houses
By City
Dammam Metropolitan Area
Other Cities

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Key Market Trends

The demand for Apartments remains high due to cultural preferences in Saudi Arabia

Apartments sales and rental rates are under pressure due to economic slowdown and taxes such as the ex-pat dependent levy. Moreover, the demand for apartments is not as high as for villas. However, the popularity of apartments is increasing relative to previous years in Saudi Arabia as a higher number of new developments are introducing apartments. The multi-dwelling model allows for more revenue generation potential and can easily transform into a rental model if the sale absorption is not fast enough.

New apartment developments with modern fixtures and fittings, in addition to a private basement parking, are still being considered future investments. Unlike villas, existing apartments in the eastern and central parts of Saudi are more attractive in terms of location due to their proximity to the central business district of Riyadh, and the land availability in the eastern part is relatively higher as compared to central areas.

For new apartment developments, central areas are still fetching the highest sale price in the city, which vary from SAR 3,000 to SAR 4,700 per sqm. The sale prices of apartments located on the northern side were observed to be in the range of SAR 2,000 to SAR 4,300 per sqm. Apartments in the south achieved prices with values between SAR 1,500 and SAR 4,000 per sqm. Sale prices in the eastern part of Riyadh ranged between SAR 1,500 and SAR 3,600 per sqm. In the western part of Riyadh, apartments have been observed to vary from SAR 1,500 to SAR 3,000 per sqm.

Saudi Arabia Luxury Residential real Estate Market

Riyadh is Witnessing Significant Growth in the Luxury Residential Market

Riyadh is the capital and the largest city of Saudi Arabia, with a total population of 6.5 million, whereas the population of Riyadh province is around 8 million. Its location along the center of the Arabian Peninsula, coupled with increasing economic activities, makes it a preferred business destination for both Saudis and non-Saudis who live and/or work in the city.

Sale prices and rental rates of villas have seen a decline and are expected to continue to decline during 2021. The trend was first noticed after the implementation of the white land tax, which led to cautious behavior from investors and end-users, resulting in considerable drop-in activities in the sector.

Based on the industry experts, the northern and central areas of the city, such as Al Ghadeer, Al Nada, Al Malga, and Al Wurud, districts command the highest rental rates in Riyadh. The average rental rates of villas vary between SAR 70,000 and SAR 205,000 per annum on the northern central, and western sides, while rentals range between SAR 44,000 and SAR 155,000 per annum on average in the eastern and southern parts of the city.

For new villa developments, the sale price of villas located in the central part of Riyadh ranged between SAR 4,000 and SAR 6,500 per sqm. The sale prices of villas located on the northern side were observed to be in the range of SAR 2,300 to SAR 5,500 per sqm. Villas in the south reached prices with values between SAR 1,800 and SAR 3,500 per sqm. Sale prices in the eastern part of Riyadh ranged between SAR 2,000 and SAR 4,500 per sqm. In the western part of Riyadh, villas have been observed to vary from SAR 2,000 to SAR 4,000 per sqm.

Some notable upcoming luxury residential projects in Riyadh are presented in the following. The majority of the new supply is focused toward the north and the east of the city while the center is becoming saturated with various developments, and vacant land parcels are becoming more scarce.

Riyadh Luxury Residential Market

Competitive Landscape

The Saudi Arabia Luxury residential real estate market is fragmented with many players. Some of the major players in the market are Al Saedan Real Estate, Kingdom Holding Company, Ewaan, Al Ra'idah Investment Company, SEDCO Development, Jabal Omar Development Company, and Makkah Construction & Development Co, Emaar. The merger and acquisition (M&A) activity in Saudi Arabia is also expected to increase in the coming years, which is likely to increase luxury residential real estate development, thereby encouraging more companies to enter the market.

Recent Development

March 2022: Abdul Latif Jameel Properties, the residential real estate company, announced that more than half of its new Jeddah lifestyle residential community development has sold in the first three days of launch. Dari-2, a 98-unit community development comprising two, three, and four-bedroom dwelling apartments in the heart of Jeddah’s vibrant district Al Salamah, will be completed and ready for handover in early 2024. The hugely positive response to the new community, which also recorded an additional 15% reserved by prospective buyers, follows the successful release of Dari Q, which sold out in 2021.

December 2021: Dar Al Arkan, the leading real estate company in Saudi Arabia and the GCC, has unveiled the DaVinci Residential Tower in Dubai in partnership with Italian Hypercar manufacturer Pagani Automobili (an Italian manufacturer of sports cars and carbon fiber components), renowned for its exclusive and handcrafted production of ultra-limited-edition cars.

Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study


    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases



    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

    3. 4.3 Value Chain / Supply Chain Analysis

    4. 4.4 Industry Policies and Regulations

    5. 4.5 Technological Developments in the Sector

    6. 4.6 Industry Attractiveness - Porter's Five Forces Analysis

    7. 4.7 Impact of COVID-19 on the Market


    1. 5.1 By Type

      1. 5.1.1 Apartments and Condominiums

      2. 5.1.2 Villas and Landed Houses

    2. 5.2 By City

      1. 5.2.1 Riyadh

      2. 5.2.2 Jeddah

      3. 5.2.3 Dammam Metropolitan Area

      4. 5.2.4 Other Cities


    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Arabian Homes

      2. 6.2.2 Villa Palma Compound

      3. 6.2.3 Sedco Development

      4. 6.2.4 Jabal Omar

      5. 6.2.5 Saudi Real Estate Company (Al Akaria)

      6. 6.2.6 Abdul Latif Jamal

      7. 6.2.7 Rafal Real Estate Development Company

      8. 6.2.8 AI Sedan

      9. 6.2.9 Dar AI Arkan

      10. 6.2.10 Alfirah United Company for Real Estate

      11. 6.2.11 AL Nassar*

    3. *List Not Exhaustive

  8. 8. APPENDIX

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Frequently Asked Questions

The Saudi Arabia Luxury Residential Real Estate Market market is studied from 2018 - 2027.

The Saudi Arabia Luxury Residential Real Estate Market is growing at a CAGR of >5% over the next 5 years.

Sedco Development, Abdul Latif Jameel, Emaar, Rafal, Jenan, Dar Al Arkan are the major companies operating in Saudi Arabia Luxury Residential Real Estate Market.

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