The Real Estate Transformation in Saudi Arabia... From Chaos to Leadership
Dr. Hamoud Al-Faleh
The real estate sector in the Kingdom of Saudi Arabia has undergone a qualitative transformation in recent years, driven by the ambitious Vision 2030 launched by His Royal Highness Crown Prince Mohammed bin Salman, which laid the foundations for comprehensive reform that transformed the market from a state of chaos into a transparent and regulated system characterized by efficiency and sustainability.
Previously, the real estate sector suffered from a lack of regulation, speculation, and the monopolization of undeveloped land, making home ownership an elusive dream for many citizens. However, Vision 2030 radically restructured this sector through a package of policies and legislation, including the imposition of fees on undeveloped land to incentivize its development, and expanding urban development in strategic areas such as northern Riyadh, which increased supply and gradually lowered prices.
The General Real Estate Authority played a pivotal role in driving this transformation, working to establish a comprehensive legislative framework comprising 18 real estate laws aimed at regulating the market, safeguarding the rights of all parties, enhancing competitiveness, and increasing transparency. These efforts contributed to the Kingdom’s ranking among the top 40 real estate markets worldwide in the 2024 Real Estate Transparency Index.
The International Monetary Fund also commended the Kingdom’s achievements in the real estate sector, noting the rise in citizen satisfaction with housing services and the increase in the homeownership rate to 64%, as a result of market regulation, governance of procedures, and the provision of reliable real estate data and indicators through smart digital platforms.
The transformation was not only technological but also cultural; citizens“ and investors” mindset shifted from land hoarding and speculation to focusing on returns and smart investment within an environment governed by transparency and driven by innovation. Initiatives such as ”Sakani,” ”Ijar,” and "Malaak" to facilitate the relationship between landlords, tenants, and real estate developers. Transactions were also documented electronically, and the real estate registry was activated to accurately identify each property unit along with its specifications and ownership.
These initiatives were not limited to housing but also encompassed the commercial, tourism, agriculture, and industry through a system for the sale and lease of off-plan properties and real estate contributions, which provide flexible financing solutions that help accelerate the pace of urban development.
Today, the real estate sector in the Kingdom has become one of the leading drivers of non-oil growth, contributing to GDP, offering promising investment opportunities, and laying the foundation for more efficient and sustainable cities. Public-private partnerships and the alignment of policies with the National Vision have made real estate an integral part of a revitalized urban landscape that meets citizens’ expectations and aligns with the Kingdom’s ambitions to build a diversified economy.
In short, what has been achieved in the Saudi real estate sector is not merely an administrative reform, but rather a story of strategic transformation that has restored confidence in the market, placed citizens at the heart of development, and opened up broad horizons toward smart cities, sustainable investments, and a brighter urban future.
