Residential Real Estate - Saudi Arabia

The Saudi Arabian Residential Real Estate market market is projected to reach US$1.61tn in 2024.
It is expected to exhibit an annual growth rate (CAGR 2024-2029) of 1.59%, leading to a market volume of US$1.75tn by 2029.
When comparing globally, China is forecasted to generate the highest value in the Real Estate sector, with US$112.9tn in 2024.
The demand for luxury villas in Saudi Arabia is soaring, driven by the increasing number of high-net-worth individuals investing in the country's booming residential real estate market.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Residential Real Estate market in Saudi Arabia has been experiencing significant growth and development in recent years. Customer preferences in the market have shifted towards larger and more luxurious properties. This is due to the increasing wealth and disposable income of Saudi Arabian citizens, as well as the desire for spacious and modern homes. Additionally, there is a growing demand for properties with amenities such as swimming pools, gyms, and green spaces. Trends in the market show a rise in the construction of high-rise buildings and gated communities. This is driven by the need to accommodate the growing population and the desire for secure and exclusive living environments. The development of these types of properties also reflects the changing lifestyles and preferences of Saudi Arabian residents. Local special circumstances in Saudi Arabia have contributed to the development of the Residential Real Estate market. The government has implemented various initiatives to promote the growth of the real estate sector, such as the introduction of mortgage laws and the establishment of real estate financing companies. These measures have made it easier for individuals to purchase properties and have increased the accessibility of the market. Additionally, the government has invested in the development of infrastructure and transportation, which has further stimulated the real estate market. Underlying macroeconomic factors have also played a role in the development of the Residential Real Estate market in Saudi Arabia. The country has experienced strong economic growth in recent years, driven by factors such as increased oil prices and diversification efforts. This has resulted in higher levels of employment and income, which have contributed to the demand for residential properties. Furthermore, low interest rates have made it more affordable for individuals to borrow money and invest in real estate. In conclusion, the Residential Real Estate market in Saudi Arabia has been developing rapidly due to changing customer preferences, local special circumstances, and underlying macroeconomic factors. The market is expected to continue growing in the coming years, driven by the increasing wealth and demand for luxury properties.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Residential Real Estate - Saudi Arabia

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Real Estate Type

Living Space

Methodology

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