Saudi Arabia Real Estate Industry Report 2025 | Growth, Investments & Market Trends

Saudi Arabia’s real estate sector is undergoing rapid transformation, driven by Vision 2030, economic diversification, and large-scale infrastructure investments. The market was valued at $64.43 billion in 2023 and is projected to reach $94.19 billion by 2028, with a CAGR of 7.89%.

Key Highlights:

1. Market Growth & Economic Impact

• Real estate significantly contributes to GDP, with the non-oil sector expected to grow by 4.2% in 2024.
• Housing rents increased by 10.8%, indicating rising demand.
• The unemployment rate dropped to 7.1%, signaling labor market improvements.

2. Residential & Commercial Real Estate

• Residential Market:
  • 61% of total real estate transactions in 2024 were residential.
  • 91,860+ property sales recorded in H1 2024.
  • Villa prices rose by 3.3% in Riyadh and 0.8% in Jeddah.
• Commercial Sector:
  • 99.7% occupancy rate for Grade A offices in Riyadh.
  • Prime office rents increased by 14.5% in Q1 2024.
  • Mega-projects like King Abdullah Financial District (KAFD) and Laysen Valley are boosting commercial property growth.

3. Hospitality & Tourism Growth

• 20% growth in passenger numbers in 2024.
• 148 new domestic & international flight routes, a 48% increase.
• Hotel sector recovery: RevPAR (Revenue Per Available Room) grew 43.9% since 2019.

4. Industrial & Logistics Sector

• Industrial rents in Riyadh rose 8.1% in Q1 2024.
• Grade A logistics properties saw over 90% occupancy.
• Growth fueled by e-commerce, logistics hubs, and free zone developments.

Workforce Challenges & Recruitment Solutions

• High demand for real estate professionals, including data analysts, appraisers, and product managers.
• TASC Outsourcing provides recruitment, visa sponsorship, mobility support, and compliance management to help companies meet talent needs.

Saudi Arabia’s real estate industry is booming, driven by government-backed urbanization, infrastructure projects, and growing foreign investment.

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