{"id":67423,"date":"2024-07-21T14:03:17","date_gmt":"2024-07-21T11:03:17","guid":{"rendered":"https:\/\/amlak.net.sa\/?p=67423"},"modified":"2025-11-26T02:55:58","modified_gmt":"2025-11-26T02:55:58","slug":"%d8%a8%d8%a7%d9%84%d8%a3%d8%b1%d9%82%d8%a7%d9%85-%d9%88%d8%a7%d9%84%d8%a5%d8%ad%d8%b5%d8%a7%d8%a1%d8%a7%d8%aa-%d8%a7%d8%aa%d8%ac%d8%a7%d9%87%d8%a7%d8%aa-%d8%b3%d9%88%d9%82-%d8%a7%d9%84%d8%b9%d9%82","status":"publish","type":"post","link":"https:\/\/amlak.net.sa\/en\/67423\/","title":{"rendered":"In numbers and statistics... Saudi Arabia's real estate market trends and size in 2024"},"content":{"rendered":"

It is characterized by Saudi Arabia's real estate market<\/a><\/strong> Highly competitive, with growing demand for new real estate due to the expansion of commercial activities and increased competition.<\/p>\n

According to an analytical study published by the website \u201cMordor Intelligence<\/a><\/strong>\u201dThe market is expected to see fierce competition between local and international developers. Therefore, companies must adapt their strategies to survive by adopting international standards and practices.\u201d.<\/p>\n

International real estate companies are also entering the Saudi market to secure their position and gain market share, as this market is growing and promising in the early stages of its boom.<\/p>\n

The Saudi real estate market is valued at $69.51 billion<\/span><\/h4>\n

In its analytical study, the \u201cMordor Intelligence\u201d website revealed that the size of The Real Estate Market in Saudi Arabia<\/a><\/strong> It is estimated at $69.51 billion in 2024, and is projected to reach $101.62 billion by 2029, with a compound annual growth rate of 8% over the forecast period (2024\u20132029). The real estate market in Saudi Arabia is expected to grow from $64.43 billion in 2023 to $94.19 billion by 2028, at a compound annual growth rate of 7.89% over the forecast period.<\/p>\n

The study showed that figures for the office sector in Saudi Arabia and tenant demand remained strong during the fourth quarter of 2022. This was particularly true in Riyadh, where inventory levels remain low at best, and many upcoming projects are largely fully pre-leased.<\/p>\n

Grade A office spaces in Riyadh also saw an increase in average rental rates of 5.8% year-over-year in 2022, while Class B rents rose by 1.5%. As for average occupancy rates, both Class A and Class B saw a slight improvement in occupancy levels to 99.2% and 98.7% in 2022, recording year-over-year increases of 0.8 and 1.9 percentage points, respectively.<\/p>\n

In Jeddah, rents for Class A office space rose by 7.4% in the 12 months through December 2022, while Class B rents remained unchanged. Occupancy rates for both Class A and Class B offices rose to 90.6% and 76.0%, compared to 87.8% and 74.6% in 2021. And<\/p>\n

In the Eastern Province, the office markets in Dammam and Al-Khobar saw increases in Class A rents of 7.9% and 6.2%, respectively, over the course of the year through 2022, while Class B rents remained stable. Grade-A occupancy rates in Dammam and Al-Khobar stood at 81.2% and 78.7%, respectively, at the end of 2022.<\/p>\n

Meanwhile, residential transaction volumes in the Kingdom fell by 24.5% in 2022 compared to the previous year. Overall, the total number of residential transactions reached 175,067, with a total value of 126.5 billion Saudi riyals during this period, representing a marginal decrease of 3.7% year-over-year.<\/p>\n

The study noted a decline in total transaction volume across the three major regions throughout 2022, with total transaction volume in Riyadh, Jeddah, and Dammam falling by 33.9% and 16.2%, and 20.9%, respectively. Regarding price performance in the residential sector, average villa prices in Riyadh, Jeddah, and Dammam rose by 6.2%, 6.7%, and 17.4%, respectively, in 2022.<\/p>\n

The residential sector is driving the real estate market in the Kingdom<\/span><\/h4>\n

The Kingdom of Saudi Arabia has identified housing as one of its key initiatives 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.<\/p>\n

Looking at the office sector figures in Saudi Arabia, workplace visits have remained above pre-pandemic levels, currently standing 19.3% higher. Activity remains concentrated in Riyadh, where demand continues to outstrip supply. As a result, occupancy levels in Riyadh rose by 0.7 percentage points in the previous quarter, averaging 98.1% in 2022. Limited supply also continued to keep rental rates high, with average rents for Class A and Class B properties increasing by 3.9 TP3T and 4.21 TP3T, respectively, in 2022.<\/p>\n

Housing Supply Volume\u00a0<\/strong><\/span><\/h4>\n

According to a study by \u201cMordor Intelligence,\u201d the Kingdom will need to build approximately 1.2 million additional homes over the next decade to meet the housing supply target of 4.96 million homes by 2030. 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.<\/p>\n

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.<\/p>\n

As of August 2022, the total number of mortgage loans related to apartment purchases had increased by 12% across the Kingdom, compared with a decline of 45% for villas. Increased corporate activity and rising total employment in Riyadh are driving up demand for residential units.<\/p>\n

In fact, according to the latest forecasts from Oxford Economics, the employment rate in Riyadh is expected to rise by approximately 5% by the end of 2022, with an additional 3% growth projected for 2023.<\/p>\n

Global Companies Open Their Regional Headquarters in Riyadh<\/strong><\/span><\/h4>\n

The study finds that the Kingdom\u2019s requirement that all foreign companies contracting with the government relocate their headquarters to Saudi Arabia indicates the country\u2019s need for more office buildings to meet international standards and meet the enormous demand from foreign companies and investors.<\/p>\n

The Saudi government has launched a new program aimed at accelerating its plan to attract international companies to the Kingdom. The Kingdom announced that some companies will be able to operate in the Kingdom without having a headquarters in the country. Companies whose foreign operations do not exceed 1 million Saudi riyals (US$266,000) can operate in the Kingdom without a local headquarters.<\/p>\n

MISA data also reveals that 53 investment deals were signed across various sectors in 2022. These include sectors such as telecommunications, information technology, energy, and healthcare.<\/p>\n

Despite global economic uncertainty, the total number of new investment licenses issued reached 1,163 in 2022, reflecting stability in new foreign investment licenses.<\/p>\n

The Ministry of Investment clarified that, after excluding the number of new licenses issued as part of the campaign against front companies, 928 new foreign investment licenses were issued in 2022.<\/p>\n

This represents an increase of 8.8% year-over-year, reflecting the Kingdom\u2019s status as an attractive investment destination, with strong competitive advantages including a stable and supportive investment environment, as well as the availability of local inputs, a young workforce, and the Kingdom\u2019s strategic geographic location.<\/p>\n

Companies with foreign operations valued at less than 1 million Saudi riyals (266,000 U.S. dollars) are permitted to operate in the Kingdom without establishing a local office.<\/p>\n

Saudi officials expect 480 companies to open branches in the Kingdom by 2030, as the country seeks to diversify its oil-rich economy. PepsiCo, Didi, Unilever, Siemens, KPMG, Novartis, Baker Hughes, Halliburton, Philips, Fluor, Schlumberger, and SAP, PricewaterhouseCoopers, Oyo, Boston Scientific, and Tim Hortons were among the companies that have already relocated their regional headquarters.<\/p>\n

The program to attract regional headquarters of multinational companies to the Kingdom of Saudi Arabia, one of the Vision 2030 projects, aims to provide significant local benefits to the Saudi economy. This initiative also aims to enable local talent to collaborate with multinational companies. Average rents for Class A office space in Riyadh rose by 5.9%, while Class B office space saw an increase of 3.5% in the 12 months through September 2022.<\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>","protected":false},"excerpt":{"rendered":"

Reading time: <\/span> 4<\/span> Minutes<\/span><\/span>The Saudi real estate market is highly competitive, with demand for new properties on the rise due to growing commercial activity and increased competition. According to an analytical study published by \u201cMordor Intelligence,\u201d the market is expected to witness fierce competition between local and international developers. Therefore, companies must adapt their strategies to remain competitive by adopting international standards and practices. Furthermore \u2026 Read more<\/a><\/p>","protected":false},"author":27,"featured_media":59410,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"0","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":0,"_seopress_analysis_target_kw":"","_seopress_news_disabled":"","_seopress_video_disabled":"","_seopress_video":[],"_seopress_pro_schemas_manual":[],"_seopress_pro_rich_snippets_disable_all":"","_seopress_pro_rich_snippets_disable":[],"_seopress_pro_schemas":[],"footnotes":""},"categories":[91],"tags":[],"class_list":["post-67423","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-data-research"],"acf":{"amlak_post_excerpt":"\u062d\u062c\u0645 \u0627\u0644\u0633\u0648\u0642 69.51 \u0645\u0644\u064a\u0627\u0631 \u062f\u0648\u0644\u0627\u0631 \u0641\u064a 2024 \u0648\u064a\u062a\u0648\u0642\u0639 \u0623\u0646 \u064a\u0635\u0644 \u0625\u0644\u0649 101.62 \u0645\u0644\u064a\u0627\u0631 \u062f\u0648\u0644\u0627\u0631 \u0628\u062d\u0644\u0648\u0644 2029.","amlak_post_excerpt_source":{"label":"Amlak post excerpt","type":"text","formatted_value":"\u062d\u062c\u0645 \u0627\u0644\u0633\u0648\u0642 69.51 \u0645\u0644\u064a\u0627\u0631 \u062f\u0648\u0644\u0627\u0631 \u0641\u064a 2024 \u0648\u064a\u062a\u0648\u0642\u0639 \u0623\u0646 \u064a\u0635\u0644 \u0625\u0644\u0649 101.62 \u0645\u0644\u064a\u0627\u0631 \u062f\u0648\u0644\u0627\u0631 \u0628\u062d\u0644\u0648\u0644 2029."}},"featured_image_urls":{"full":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2023\/09\/\u0627\u0644\u0645\u0645\u0644\u0643\u0629.png",1164,438,false],"thumbnail":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2023\/09\/\u0627\u0644\u0645\u0645\u0644\u0643\u0629-150x150.png",150,150,true],"medium":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2023\/09\/\u0627\u0644\u0645\u0645\u0644\u0643\u0629-300x113.png",300,113,true],"medium_large":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2023\/09\/\u0627\u0644\u0645\u0645\u0644\u0643\u0629-768x289.png",768,289,true],"large":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2023\/09\/\u0627\u0644\u0645\u0645\u0644\u0643\u0629-1024x385.png",1024,385,true],"1536x1536":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2023\/09\/\u0627\u0644\u0645\u0645\u0644\u0643\u0629.png",1164,438,false],"2048x2048":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2023\/09\/\u0627\u0644\u0645\u0645\u0644\u0643\u0629.png",1164,438,false],"trp-custom-language-flag":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2023\/09\/\u0627\u0644\u0645\u0645\u0644\u0643\u0629.png",18,7,false],"event-thumbnail":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2023\/09\/\u0627\u0644\u0645\u0645\u0644\u0643\u0629-300x200.png",300,200,true],"event-medium":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2023\/09\/\u0627\u0644\u0645\u0645\u0644\u0643\u0629-600x400.png",600,400,true],"event-large":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2023\/09\/\u0627\u0644\u0645\u0645\u0644\u0643\u0629.png",1164,438,false],"event-hero":["https:\/\/amlak.net.sa\/wp-content\/uploads\/2023\/09\/\u0627\u0644\u0645\u0645\u0644\u0643\u0629.png",1164,438,false]},"author_info":{"info":["\u0623\u0645\u0644\u0627\u0643 \u0627\u0644\u0639\u0642\u0627\u0631\u064a\u0629"]},"category_info":"\u0628\u064a\u0627\u0646\u0627\u062a \u0648\u0623\u0628\u062d\u0627\u062b<\/a>","tag_info":"\u0628\u064a\u0627\u0646\u0627\u062a \u0648\u0623\u0628\u062d\u0627\u062b","comment_count":"0","_links":{"self":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts\/67423","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/comments?post=67423"}],"version-history":[{"count":0,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts\/67423\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/media\/59410"}],"wp:attachment":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/media?parent=67423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/categories?post=67423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/tags?post=67423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}