The Saudi real estate market recorded a strong performance during the first three months of this year, with the value of real estate deals reaching about $29 billion, reflecting the vitality of the real estate sector in the Kingdom under Vision 2030.
The CBRE report showed that the Saudi real estate market recorded a strong performance during the first three months of this year, with the value of real estate transactions reaching about $29 billion, reflecting the vitality of the real estate sector in the Kingdom in light of Vision 2030, which aims to diversify the economy and increase investments.
Market regulation and housing incentives
As part of its efforts to control prices and stimulate housing supply, the General Real Estate Authority is studying imposing a ceiling on rental prices, as well as developing a white land fee program to reduce speculation and increase the availability of developed land.
The Royal Commission for the City of Dubai is also preparing to regulate the market and stimulate housing supply. The Royal Commission for Riyadh is also preparing to offer up to 40,000 residential plots per year at affordable prices, as part of plans to facilitate ownership and boost the housing supply in the capital.
The Royal Commission for Riyadh City is also preparing to offer up to 40,000 residential plots per year at affordable prices.
Rising foreign investment inflows
<Despite global economic challenges, the Kingdom has continued to attract foreign investment, rising to 13th place globally in the Kearney FDI Confidence Index. Foreign investment inflows grew by 37% in the third quarter of 2024, reaching SAR 16 billion, reflecting the attractiveness of the Saudi market thanks to its stability and economic reforms.Despite global economic challenges, the Kingdom has continued to attract foreign investment, rising to 13th globally in the Kearney FDI Confidence Index.
Rise in office rents
<Driven by economic expansion and demand for high-quality space, the office sector witnessed a clear recovery, with Class A office rents rising by 17% and Class B rents by 25%. Jeddah also recorded notable growth in Grade A office rents, benefiting from its proximity to important industrial centers, despite challenges associated with near-term supply scarcity.
Expansion of real estate financing
The report indicated a strong growth in new home loans by 28.3% during the beginning of the year, reaching SAR 8.91 billion. A change in demand trends was also observed, as demand for apartments increased compared to villas, while residential prices continued to rise, especially in Riyadh, which recorded a year-on-year growth of 10.7%.
Riyadh's residential prices continued to rise, especially in Riyadh, which recorded a year-on-year growth of 10.7%.
Retail Sales Rebound
Retail sales in the Kingdom grew by 8% during the first two months of 2025, reaching SR116 billion, supported by a rising population and increasing numbers of tourists, along with changes in consumer behavior, especially in the food and beverage sector, which recorded an annual growth of 4%.
Retail sales in the Kingdom grew by 8% during the first two months of 2025, supported by a rising population and increasing numbers of tourists, along with changes in consumer behavior.
Tourist growth
According to CBRE, Saudi Arabia welcomed 30 million international visitors in 2024, up 9.5% from the previous year. The tourism sector contributed 498 billion riyals to the GDP, or 12.45% of the total GDP, emphasizing the importance of this sector as a key pillar of the national economy.
The Kingdom is preparing for further tourism growth as it prepares to host huge global events such as Expo 2030 and World Cup 2034, which necessitates the expansion of tourism infrastructure, including raising the number of hotel rooms to 426,000 rooms in the coming years.
The number of hotel rooms will increase to 426,000 rooms in the coming years.
