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Saudi Arabia Real Estate Market Revenues to Reach USD 101.62 billion by 2029- Market Size, Share, Forecasts, & Trends Analysis Report by Mordor Intelligence

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Saudi Arabia Real Estate Market Revenues to Reach USD 101.62 billion by 2029- Market Size, Share, Forecasts, & Trends Analysis Report by Mordor Intelligence

February 29
17:41 2024
Saudi Arabia Real Estate Market Revenues to Reach USD 101.62 billion by 2029- Market Size, Share, Forecasts, & Trends Analysis Report by Mordor Intelligence

According to the latest research report titled, “Saudi Arabia Real Estate Market (2024 – 2029)” by Mordor Intelligence, the Saudi Arabia real estate market is estimated at USD 69.51 billion in 2024 and growing at a CAGR of 8% during the forecast period. 

In the final quarter of 2022, Saudi Arabia’s office sector remained robust, especially in Riyadh, where stock levels are minimal, and upcoming developments are mostly fully pre-leased. Grade A offices in Riyadh experienced a 5.8% year-on-year increase in rental rates in 2022, while Grade B rents saw a 1.5% rise. Average occupancy rates for both Grades A and B improved slightly to 99.2% and 98.7%, respectively, marking annual increases of 0.8 and 1.9 percentage points in 2022. 

In Jeddah, Grade A office rents surged by 7.4% in the year leading up to December 2022, while Grade B rents remained stable. Both Grade A and Grade B office occupancy rates increased to 90.6% and 76.0%, respectively, up from 87.8% and 74.6% in 2021. In the Eastern Province, Dammam, and Khobar they witnessed Grade A rent hikes of 7.9% and 6.2%, respectively, by the end of 2022, while Grade B rents remained unchanged. Occupancy levels for Grade A offices in Dammam and Khobar stood at 81.2% and 78.7%, respectively, at the close of 2022. 

Report Summary 

  • Market Size (2024): USD 69.51 billion 
  • Market Size (2029): USD 101.62 billion 
  • CAGR (2024 – 2029): 8% 
  • Study Period: (2020-2029) 
  • Forecast Units: Value (USD Billion)   
  • Report Scope: Market Dynamics, Revenue Forecast & Segmentation, Competitive Landscape & Recent Developments, Market Growth, Future Opportunities, and Trends    
  • Market Drivers: Growth in Commercial Activities Increased Competition and Increasing Demand for Affordable Housing Units 

Which are the Top Companies in the Saudi Arabia Real Estate Market?     

The Saudi Arabian real estate market is fiercely competitive, driven by rising demand for new properties amid commercial expansion and heightened competition. Over 95% of local real estate developers operate using outdated methods. These traditional approaches will pose challenges in meeting the market’s demand for high-quality office buildings. Additionally, the Kingdom has required all foreign companies holding government contracts to relocate their headquarters to Saudi Arabia. 

Prominent players in the Saudi Arabia real estate market: 

  • Jenan Real Estate Company 
  • Ewaan Co. Ltd 
  • Sedco Development 
  • Jabal Omar 
  • Emaar 
  • Al Saedan Real Estate 
  • Kingdom Holding Company 
  • Abdul Latif Jameel 
  • Dar Ar Alkan 

Other Reports that Might be of Your Interest 

  • Residential Real Estate Market in Turkey Report: The Residential Real Estate Market in Turkey Market size is estimated at USD 99.05 billion in 2024, and is expected to reach USD 168.11 billion by 2029, growing at a CAGR of 11.16% during the forecast period (2024-2029) 
  • Oman Residential Real Estate Market Report: The Oman Residential Real Estate Market size is estimated at USD 4.38 billion in 2024, and is expected to reach USD 6.80 billion by 2029, growing at a CAGR of 9.19% during the forecast period (2024-2029) 

Key Highlights from the Saudi Arabia Real Estate Market Report 

 

1. Sustaining the Real Estate Market: The Role of the Residential Sector 

  • Saudi Arabia has identified housing as one of its key projects under Vision 2030.  
  • The housing ministry aims to build 300,000 housing units over the next five years, in partnership with the private sector. 
  • Looking at Saudi Arabia’s office sector numbers, visitation to the workplace remained higher than its pre-pandemic baseline, presently standing 19.3% higher.  
  • The focus of activity remains on Riyadh, where demand continues to surpass supply. 
  • Consequently, occupancy levels in Riyadh have increased by 0.7 percentage points in the prior quarter, reaching 98.1% on average in 2022. 
  • Constrained supply levels have also continued to sustain rental rate rise, with average Grade A and Grade B rentals increasing by 3.9% and 4.2%, respectively, in the year 2022. 
  • To attain a housing supply of 4.96 million residences by 2030, the Kingdom will need to build around 1.2 million additional homes during the next decade.  
  • Housing demand is predicted to rise from 99,600 houses in 2021 to 153,000 houses by 2030, with an average of 124,000 dwellings built per year over that time. 
  • In the last decade, the Kingdom of Saudi Arabia has significantly progressed in reforming its housing industry. 
  • It is expected to accomplish its goals of 70% house ownership and an 8.8% contribution to national GDP by 2030.  

2. Riyadh Emerges as Hub: International Companies Establish Regional Headquarters 

Saudi Arabia has introduced a new program to expedite its efforts to attract international companies. Under this initiative, companies with foreign operations below 1 million Saudi riyals (USD 266,000) can operate within the kingdom without establishing a local headquarters. It’s projected that by 2030, around 480 companies will establish operations in Saudi Arabia, contributing to the diversification of its economy. Notable corporations like PepsiCo, Unilever, Siemens, and others have already relocated their regional headquarters. This initiative, known as the Kingdom of Saudi Arabia’s Regional Headquarters Attraction Programme for Multinational Companies, aligns with Vision 2030 and aims to bolster the local economy while fostering collaboration between local talent and multinational corporations. In Riyadh, Grade A office rents rose by 5.9%, while Grade B saw a 3.5% increase in the twelve months leading up to September 2022. 

What are the Latest Developments in the Saudi Arabia Real Estate Market?    

  • In May 2023: The National Security Services Company (SAFE), which leads the transformation of the local security services sector, has signed an acquisition agreement to acquire ABANA Enterprises Group Company’s assets connected to the transit of cash and valuable goods. ABANA Enterprises Group Company is at the forefront of providing such services in the Kingdom. 
  • In July 2022: SEDCO Capital REIT Fund’s board approved acquiring two income-generating real estate assets worth SR700 million (USD 187 million), located in Riyadh and Jeddah. This acquisition will be covered by new units and by using banking facilities in accordance with the Fund’s terms and conditions, according to a bourse filing. 

Mordor Intelligence Report on the Saudi Arabia Real Estate Market segments the market based on product type, application, and geography: 

  • By Property Type (Market Size & Forecast based on Value (USD billion), 2024-2029)   
  • Residential Real Estate 
  • Apartments  
  • Villas  
  • Other Types of Residential Real Estate  
  • Commercial Real Estate 
  • Offices  
  • Retail  
  • Hospitality  
  • Other Types of Commercial Real Estate 

In a nutshell, the Mordor Intelligence Market Research Report provides in-depth market insight to industry players, investors, researchers, consultants, and business strategists, looking for comprehensive details on the Saudi Arabian real estate industry. Get a glance at the Saudi Arabia Real Estate Market Report (2024 – 2029) 

About Mordor Intelligence 

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.  

With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.   

Other Related Reports that Might be of Interest 

  • Commercial Real Estate Market in Mexico Report: The Commercial Real Estate Market in Mexico Market size in terms of transaction value is expected to grow from USD 53.60 billion in 2024 to USD 75.99 billion by 2029, at a CAGR of 7.23% during the forecast period (2024-2029) 
  • Malaysia Real Estate Market Report: The Malaysia Real Estate Market size is estimated at USD 36.76 billion in 2024, and is expected to reach USD 50.69 billion by 2029, growing at a CAGR of 6.64% during the forecast period (2024-2029) 

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