Saudi Arabia’s Real Estate Market Growth
The residential sector in Saudi Arabia has seen significant growth, delivering 27,500 new units in Riyadh and Jeddah. This brings the total to 1.46 million units in Riyadh and 891,000 units in Jeddah.
Residential sale prices have increased by 10% year-on-year in Riyadh, with rents up by 9%. In Jeddah, sale prices rose by 5%, and rents by 4%.
The hospitality sector is also expanding with the country expecting 150 million visitors by 2030. Average occupancy rates and daily rates have increased, boosting revenue per available room (RevPAR) by 8%. In Makkah and Medina, RevPARs grew by 4% and 15%, respectively, and in Riyadh, the average daily rate increased by 25%.
Future prospects are bright with $800 billion planned investments in tourism over the next decade, including major events like the Asian Cup 2027, Asian Winter Games 2029, Expo 2030, and FIFA World Cup 2034.
The office market remains competitive. Riyadh added 52,000 sq. m of new office space, while Jeddah’s stock remained stable at 1.21 million sq. m, totaling 5.2 million sq. m. Average Grade A rents in Riyadh rose by 19% annually to SAR 2,090 per sq. m. per annum, and in Jeddah, rents increased by 11% to SAR 1,335 per sq. m. per annum.
In retail, Jeddah expanded its space by 106,000 sq. m. in Souq 7, bringing the total to 2.16 million sq. m. Average rents for super regional malls in Jeddah increased by 4% year-on-year, while regional malls saw a 4% decline. Riyadh’s retail space remained stable at 3.48 million sq. m., with an additional 77,000 sq. m. expected later in the year.
Overall, Saudi Arabia’s real estate market continues to grow, driven by robust residential and hospitality sectors, and supported by significant future investments and events.