The real estate market in Riyadh is entering a new phase that goes beyond traditional growth to a comprehensive reshaping of the rules of the game, driven by the acceleration of Saudi Vision 2030 programs, shifting development priorities, and expanding investment opportunities in various sectors. This transformation is not limited to the size of projects, but extends to implementation mechanisms and partnership models, reinforcing the capital's position as one of the most dynamic real estate markets in the region.
emphasized JLL The real estate market in Riyadh is witnessing a deep structural transformation, driven by accelerated strategic changes, strong momentum in implementing the objectives of Saudi Vision 2030, and a remarkable diversity of investment opportunities across multiple sectors, reflecting the maturity of the market and its ability to absorb more complex stages of growth.
The company said in a statement that the Kingdom's construction sector continues to show a high degree of resilience, despite challenges associated with the availability of skilled labor, rising costs of construction materials, and supply chain volatility. The increasing reliance on Building Information Modeling (BIM) has contributed to increasing execution efficiency and improving project management, reducing operational risks and enhancing cost control.
According to JLL, Saudi Arabia's construction sector was valued at USD 100 billion in 2025 and is expected to continue growing at an annualized rate of 5.4% until 2029, driven by the momentum of major projects and the expansion of government and private investments.
In terms of execution costs, the company said that the average annual inflation of tender prices is likely to range between an increase of 2% and a decrease of 2%, emphasizing that this range reflects the importance of proactive cost management as a critical element to maintain efficient financial performance and ensure the sustainability of projects.
She stressed that the outlook for the real estate market in Riyadh remains positive, supported by a set of major catalysts, most notably the hosting of Expo 2030, the organization of the FIFA World Cup 2034, the development of King Salman International Airport, the legislative reform package, and the growing partnerships of the Public Investment Fund with the private sector, which enhance the attractiveness of the market to local and international investors.
Saud Al-Sulaimani, Regional Director and Head of Capital Markets at JLL Saudi Arabia, said Riyadh is leading the way in realizing Saudi Vision 2030, capitalizing on the unprecedented opportunities available to investors and developers as the government continues to update national priorities, ensuring strategic alignment between projects and enhancing collaboration with the private sector.
Regulatory reforms, such as the implementation of white land fees and the decision to freeze rent increases, are aimed at stabilizing the real estate market, which will gradually lead to a greater focus on developing high-quality assets. He pointed out that this shift, in conjunction with the changing construction cost equation in some sectors, contributes to redrawing the map of the real estate market in Riyadh and opens the way for a more mature and selective phase of investment and development.
