The “Mordor Intelligence” website confirmed that the Saudi real estate market is highly competitive, with growing demand for new properties due to the expansion of commercial activities and increased competition.

It noted that the Kingdom has identified the housing sector as one of its key projects under Vision 2030. The Ministry of Municipal, Rural Affairs, and Housing aims to build 300,000 housing units over the next five years, in partnership with the private sector.

Housing Supply

According to a study by “Mordor Intelligence,” in order to reach a housing supply of 4.96 million homes by 2030, the Kingdom will need to build approximately 1.2 million additional homes over the next decade. Demand for housing is expected to rise from 99,600 homes in 2021 to 153,000 homes by 2030, with an average of 124,000 homes built annually during that period.

The study noted that over the past decade, the Kingdom has made significant progress in reforming the housing sector. It is expected to achieve its goals of 70% home ownership and an 8.8% contribution to the national GDP by 2030.

As of August 2022, the total number of mortgages related to apartment purchases rose by 12% across the Kingdom, compared to a decline of 45% for villas. Increased corporate activity and rising total employment in Riyadh are driving up demand for residential units.

According to the latest forecasts from Oxford Economics, the employment rate in Riyadh will rise by approximately 5% by the end of 2022, with an additional 3% growth expected in 2023.