According to the latest market research study published by P&S Intelligence, the Saudi Arabian real estate market is poised for significant growth, with projected revenues reaching USD 7,021.3 million in 2024 and an anticipated CAGR of 8.3% through 2030, culminating in a market size of USD 11,311.4 million. This expansion is fueled by factors such as rapid urbanization, evolving lifestyles, a surge in e-commerce activities, favorable interest rates, and increased infrastructure development. Government initiatives under Vision 2030, aimed at diversifying the economy and promoting urban development, are also playing a pivotal role in propelling the real estate sector forward.
The residential segment, in particular, is experiencing
robust growth. Notably, apartment prices in key cities like Riyadh and Jeddah
witnessed significant increases in 2021, with Riyadh seeing a 17% rise and
Jeddah a 12% uptick compared to the previous year. This trend underscores the
escalating demand for housing, driven by demographic shifts and rising
disposable incomes.
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Key Insights
Segmentation Analysis
The residential real estate category is projected to grow at
the highest CAGR of 8.6% during 2024–2030, maintaining its position as the
largest market segment.
Within property sizes, the 5,000–50,000 sq m category holds
the largest market share at 50% in 2024, encompassing a diverse range of
residential, commercial, and mixed-use developments.
In terms of booking modes, sales dominate the market and are
expected to grow at the highest CAGR of 8.7% during the forecast period, driven
by population growth and increasing disposable incomes.
Regional and Geographical Trends
Al-Riyadh province leads the market with a 40% share in
2024, attributed to a growing number of real estate projects and luxurious
apartments.
The Eastern Region is the fastest-growing market, advancing
at a CAGR of 8.9% during 2024–2030, propelled by rapid urbanization and
population growth.
Cities like Dammam, Khobar, and Dhahran in the Eastern
Province are key industrial and commercial hubs, attracting significant
investment in various real estate sectors.
Technological Advancements Shaping the Market
The adoption of digital solutions is a prominent trend,
enhancing operational efficiency and customer experiences.
Online platforms such as Saudi Property and Aqarmap have
gained popularity, facilitating property searches and connections with
developers and agents.
Technologies like 3D visualization and virtual tours are
being utilized to offer realistic property views, reducing the need for
physical visits.
Artificial intelligence and data analytics are employed to
analyze property rates and market trends, providing personalized
recommendations and aiding stakeholders in strategic decision-making.
Competitive Dynamics, Major Players, and Emerging
Opportunities
The Saudi Arabian real estate market is moderately
fragmented, with a mix of domestic and international players.
Key domestic companies include Dar Al Arkan Real Estate
Development Company, Jenan Real Estate Company, and Jabal Omar Development
Company.
International developers like Emaar Properties are also
actively engaged in major projects within the country.
The government's investment in megaprojects such as NEOM,
King Salman Park, and the Red Sea Project presents lucrative opportunities for
real estate development and investment.
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