Saudi Arabia real estate market 2025: Powered by Vision 2030, AI, and mega projects

Saudi Arabia: Real estate development playing crucial role in realization of Vision 2030 goals 

Market Snapshot

·         Market Size (2024): USD 72.11 Billion

·         Forecast (2033): USD 132.65 Billion

·         CAGR (2025–2033): 7.0%

According to the latest IMARC Group report, “Saudi Arabia Real Estate Market Size, Share, Trends and Forecast, 2025–2033,” the Kingdom’s real estate sector is entering a transformative decade, fueled by Vision 2030, giga-projects, AI-driven innovation, and surging housing demand.

AI at the core of real estate transformation

Artificial intelligence is revolutionizing property development and investment in Saudi Arabia:

·         Quant’s AI platform processes satellite data from 25 trillion points to deliver real-time property insights.

·         NEOM uses AI and blockchain to manage urban planning for one million residents.

·         JLL’s Falcon AI cuts energy use in smart buildings by up to 30%.

·         Sakani housing program leverages AI to process 96,000 applications and streamline mortgage approvals.

·         AI-driven PropTech in Riyadh optimizes pricing across 694 neighborhoods, supporting $20.6 billion in residential transactions.

 

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Key growth drivers and trends

Saudi Arabia’s Vision 2030 is reshaping the market through:

·         Mega Projects: NEOM, Qiddiya, Red Sea Project, and $1 trillion in infrastructure investments.

·         Affordable Housing: The Sakani program has supported 96,000+ families, while reduced mortgage down payments (5%) spurred a 53% jump in Jeddah’s housing transactions.

·         Commercial Boom: Riyadh records a 99.7% occupancy rate for Grade A offices, attracting global firms like Siemens.

·         Residential Demand: 61% of all real estate tr
ansactions are residential, with developers such as Dar Al Arkan building 27,500 new homes in Riyadh and Jeddah.

Tourism & hospitality: Real estate’s next growth engine

With Vision 2030 targeting 150 million tourists annually, tourism-driven real estate is flourishing:

·         Hotels & Resorts: Hospitality revenues surged 43.9% YoY, supported by 148 new flight routes.

·         Mixed-use Projects: Jabal Omar is expanding near Mecca to cater to growing pilgrim demand.

·         Retail Reinvented: “Retailtainment” destinations are countering e-commerce growth with experiential malls.

Market segmentation

By Property Type:

·         Residential: Apartments, Villas, Others

·         Commercial: Offices, Retail, Hospitality, Others

By Region:

·         Northern & Central

·         Western

·         Eastern

·         Southern

Key Players: Abdul Latif Jameel, Dar Al Arkan, Emaar, Jabal Omar, Jenan Real Estate, Kingdom Holdings, SEDCO.

 

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Recent industry developments

·         July 2025: New law permits foreign ownership in Saudi real estate, sparking global investor interest—84% of HNWIs are eyeing Makkah and Madinah.

·         July 2025: PropTech Summit unveiled 18 regulatory updates to boost digital real estate, contributing 7% to GDP.

·         June 2025: ROSHN launched the ALMANAR project in Makkah—4,149 sustainable homes designed with AI, housing 17,000 residents.

Conclusion

Saudi Arabia’s real estate market is evolving into a high-tech, globally competitive sector. With AI, giga-projects, and Vision 2030, the Kingdom is set to double market size within the next decade—transforming its cities into vibrant, smart, and investment-ready hubs.

Source: https://vocal.media/