Saudi Arabia Real Estate Market update
Saudi Arabia’s real estate market is expected to achieve a significant growth, over the next decade, fueled by the government’s substantial economic initiatives.
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The government’s initiatives are part of the Vision 2030 plan, aimed at shifting the economy away from oil dependency by investing in other major sectors. Such initiatives are likely to enhance the country’s real estate value, attracting property investors globally.
The Saudi Arabia Real Estate Market size is estimated at USD 69.51 billion in 2024, and is expected to reach USD 101.62 billion by 2029, growing at a CAGR of 8% during 2024-2029 period.
This market is highly known for its competitiveness, especially with the higher demand for new properties due to the growth in commercial activities and the increased numbers of real estate development companies operating nowadays.
Saudi Arabia has identified the housing to be one of the key projects of the real estate sector under Vision 2030. And the housing ministry announced its aim to build 300,000 housing units over the next five years, in partnership with the private sector, and together they have put a target of attaining a housing supply of 4.96 million residences by 2030, therefore they will need to build around 1.2 million additional homes during the next decade.
The focus of the Saudi Arabia’s office sector remains on Riyadh, where demand continues to surpass supply. The occupancy levels in Riyadh have increased in prior period, reaching 98.1% on average in past years.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
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Villa prices saw particularly strong growth, with capital values increasing by 33.4 percent year-on-year
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Dubai’s real estate market showed strong performance in the second quarter of 2024, with notable increases across the residential, office, and retail sectors, according to a new ValuStrat real estate report for Q2 2024.
Villa prices experienced particularly strong growth, with capital values rising by 33.4 percent year-on-year.
Haider Tuaima, Director and Head of Real Estate Research at ValuStrat said: “The Dubai real estate market has shown impressive growth and resilience in recent months. The ValuStrat Price Index for Residential Capital Values increased by 6.4 percent quarterly and 28.2 percent annually, reaching 178.2 points.
“Despite severe flooding caused by record rainfalls in April, the quick and effective response from developers and authorities helped to control the damage, ensuring that market activity and property valuations remained robust in the subsequent months.”
The office sector also performed well, with the VPI for office capital values surging by 31.7 percent annually and 9.4 percent quarterly, reaching 212.5 points—the highest quarterly increase in a decade.
In the retail sector, Emaar Properties reported 98 percent occupancy in their prime mall assets, while overall mall occupancy stood at 96 percent during the first quarter of 2024. The hospitality sector also saw growth, with total international guests reaching 8.12 million as of May 2024, a 9.9 percent increase compared to the same period last year. Hotel occupancy reached 81 percent, rising by 1.4 percent year-on-year.
Despite these positive indicators, Tuaima added, “The decline in transaction volumes calls for a closer examination of market dynamics as stakeholders navigate this evolving landscape.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
