Market Size of Saudi Arabia Real Estate Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 69.51 Billion |
| Market Size (2029) | USD 101.62 Billion |
| CAGR (2024 - 2029) | 8.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Saudi Arabia Real Estate Market Analysis
The Saudi Arabia Real Estate Market size is estimated at USD 69.51 billion in 2024, and is expected to reach USD 101.62 billion by 2029, growing at a CAGR of 8% during the forecast period (2024-2029).
The Saudi Arabia Real Estate Market size is expected to grow from USD 64.43 billion in 2023 to USD 94.19 billion by 2028, at a CAGR of 7.89% during the forecast period.
- Saudi Arabia's office sector figures and occupier demand remained strong over the last quarter of 2022. This was particularly so in Riyadh, where stock levels remain anaemic at best and many upcoming developments are mostly fully pre-leased. Grade A offices in Riyadh saw average rental rates increase by 5.8% year-on-year increase in 2022, while Grade B rents rose by 1.5%. As for average occupancy rates, both Grades A and B stock saw occupancy levels improve slightly to 99.2% and 98.7% in 2022, marking annual increases of 0.8 and 1.9 percentage points respectively.
- In Jeddah, Grade A office rents increased by 7.4% in the 12 months to December 2022, whereas Grade B rents remained unchanged. Occupancy rates for both Grade A and Grade B offices rose to reach 90.6% and 76.0%, up from 87.8% and 74.6% in 2021. In the Eastern Province, Dammam and Khobar's office markets saw Grade A rents increase by 7.9% and 6.2% respectively over the year to 2022, with Grade B rents remaining flat. Grade A occupancy levels in Dammam and Khobar at the end of 2022 stood at 81.2% and 78.7% respectively.
- Residential transaction volumes in Saudi Arabia fell by 24.5% during 2022, compared to a year earlier. Overall, the number of residential transactions totalled 175,067 and the total value of these transactions stood at SAR 126.5 billion over this period, representing only a marginal decline of 3.7% year-on-year. On a regional level, we have seen total transaction volumes fall across the three major regions throughout 2022, where in Riyadh, Jeddah and the Dammam Metropolitan Area (DMA) total transaction volumes fell by 33.9%, 16.2% and 20.9% respectively. With regards to price performance in the residential sector, average villa prices in Riyadh, Jeddah and Dammam increased by 6.2%, 6.7% and 17.4% in 2022.
