“Booming Real Estate Sector in Saudi Arabia: Key Trends and Growth Factors”
Since the start of 2024, Saudi Arabia’s real estate market has been on a robust growth trajectory, marked by over 280,000 transactions totaling more than $170 billion (SAR 636 billion). These transactions covered a sprawling area exceeding two billion square meters, underscoring the sector’s substantial contribution to the Saudi GDP, reaching 5.9% by the fourth quarter of 2023.
Recent data from the real estate stock exchange reveals a vibrant market, with 518 deals recorded in the week ending June 22. These transactions amounted to SAR 331.7 million, spanning an area of approximately 900,000 square meters. Notably, prices peaked at SAR 15,000 per square meter, with an average transaction price of SAR 371 per square meter.
Jeddah’s Al-Wisam area led the pack as the most traded neighborhood, with transactions surpassing SAR 89.3 million, followed by Riyadh’s Arid district at SAR 6.35 million. Additional noteworthy areas included Riyadh’s Al-Rimal neighborhood (SAR 5.59 million), Jeddah’s Jawharat Al-Arous (SAR 3.98 million), and the northwestern Al-Bukayriyah district (SAR 700,000).
Commenting on the sector’s performance, Eng. Ahmed Al-Faqih highlighted real estate as a stable investment amid volatile stock and gold markets and rising interest rates. He attributed the market’s resilience to investor confidence in government policies and substantial capital injections through major projects like Qiddiya, NEOM, and the Red Sea development.
Moreover, regulatory advancements and legislative reforms have bolstered confidence and attracted significant capital, contributing to steady growth across all real estate sectors since the third quarter of 2023.
Saqr Al-Zahrani, another industry expert, emphasized the sustained demand and growth in the Saudi market, driven by Vision 2030 reforms and governmental efforts to enhance the business environment. He underscored the pivotal role of the real estate sector in supporting the economy, generating employment opportunities, and fostering sustainable development.
Al-Zahrani attributed the sector’s robust performance to economic reforms, investment-friendly policies, mega projects, urbanization trends, and the Kingdom’s stable political and economic landscape, all of which have bolstered investor confidence and facilitated long-term investments in real estate.
In conclusion, Saudi Arabia’s real estate sector continues to thrive, propelled by strategic reforms, large-scale projects, and a conducive investment climate, reinforcing its pivotal role in the Kingdom’s economic diversification and growth agenda.
