Real Estate - Saudi Arabia | Statista Market Forecast

The Real Estate market market in Saudi Arabia is expected to reach a value of US$2.27tn in 2024.
Among the various segments, Residential Real Estate holds the largest share, projected to reach a market volume of US$1.61tn in 2024.
This segment is anticipated to grow at an annual rate of 1.68% between 2024 and 2029, resulting in a market volume of US$2.47tn by 2029.
In terms of global comparison, United States is projected to generate the highest value in the Real Estate market market, with a value of US$132.0tn in 2024.
Saudi Arabia's real estate market is experiencing a surge in demand for luxury properties due to the country's growing affluent population.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are 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 real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

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 Real Estate market in Saudi Arabia has been experiencing significant growth and development in recent years.

Customer preferences: Saudi Arabia has a large and growing population, with a high demand for housing and commercial properties. The younger generation, in particular, is increasingly looking for modern and luxurious properties that offer a high standard of living. Additionally, there is a growing trend of investment in real estate as a means of diversifying investment portfolios and generating passive income.

Trends in the market: One of the key trends in the Saudi Arabian real estate market is the increasing focus on affordable housing. The government has implemented various initiatives and policies to encourage the development of affordable housing projects to cater to the needs of the middle-income population. This has led to an increase in the construction of affordable housing units across the country. Another trend in the market is the rise of mixed-use developments. These developments combine residential, commercial, and recreational spaces in a single project, creating vibrant communities and meeting the diverse needs of residents. Mixed-use developments are becoming increasingly popular among both developers and buyers due to their convenience and the amenities they offer.

Local special circumstances: Saudi Arabia is undergoing a major economic transformation as part of its Vision 2030 initiative. This initiative aims to diversify the economy and reduce its dependence on oil by developing various sectors, including real estate. As a result, the government has implemented several reforms and policies to attract foreign investment in the real estate sector. These include easing restrictions on foreign ownership of property and introducing new regulations to streamline the investment process.

Underlying macroeconomic factors: The real estate market in Saudi Arabia is also influenced by macroeconomic factors such as population growth, urbanization, and economic stability. The country has a young and growing population, which is driving the demand for housing and commercial properties. Additionally, rapid urbanization is leading to increased demand for real estate in major cities. Furthermore, Saudi Arabia has maintained a stable economic environment, which has attracted both domestic and foreign investors to the real estate market. The government's efforts to diversify the economy and reduce its reliance on oil have also contributed to the growth of the real estate sector. In conclusion, the Real Estate market in Saudi Arabia is experiencing significant growth and development due to customer preferences for modern and luxurious properties, the increasing focus on affordable housing, and the rise of mixed-use developments. The local special circumstances, such as the Vision 2030 initiative and the government's efforts to attract foreign investment, are also contributing to the growth of the market. Additionally, underlying macroeconomic factors such as population growth, urbanization, and economic stability are driving the demand for real estate in the country.

Data coverage:

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

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, 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:

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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Real Estate - Saudi Arabia

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