Saudi Arabia Residential Real Estate Market is Expected to Register a 7.91% CAGR Through 2030

Vision 2030 & Government Initiatives and Demographics & Population Growth are likely to propel the market during the forecast period.

According to TechSci Research report, “Saudi Arabia Residential Real Estate Market – By Region, Competition, Forecast and Opportunities, 2020-2030F”, Saudi Arabia Residential Real Estate Market was valued at USD 42 Billion in 2024 and is expected to reach USD 66 Billion by 2030 with a CAGR of 7.91% during the forecast period. 

One of the most influential drivers of Saudi Arabia’s residential real estate market is the country’s ambitious national development plan, Vision 2030. Introduced in 2016, Vision 2030 aims to diversify the Saudi economy away from oil dependency and to build a vibrant society with a high quality of life. A central pillar of this vision is the expansion and modernization of the housing sector. To meet these goals, the government has launched a series of initiatives, such as the Sakani program by the Ministry of Housing and the Real Estate Development Fund (REDF). These programs aim to increase homeownership among Saudi citizens, especially younger generations. Incentives such as subsidized mortgages, reduced interest rates, and down payment assistance have made home ownership more accessible to many families. Additionally, the government has partnered with private developers to increase the supply of affordable and modern housing units.

Mega projects like NEOM, Qiddiya, and the Red Sea Project also contribute indirectly by boosting employment and population growth in new areas, leading to increased demand for residential properties. The push for regulatory reforms has also improved investor confidence. For example, the introduction of real estate transaction taxes and land use regulations has made the market more transparent and stable. Overall, Vision 2030 continues to reshape the landscape of the residential sector, creating both short-term growth and long-term sustainability.

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Based on Mode, In Saudi Arabia, the offline market continues to dominate the residential real estate sector for several key reasons, despite the increasing global shift toward digitalization.

Saudi buyers tend to place a high value on personal relationships and trust when making significant investments, such as purchasing a home. Real estate transactions are often considered a high-stakes decision, and many buyers prefer the reassurance of face-to-face interactions with real estate agents, developers, or even property owners. This tradition of personal engagement and direct communication leads to a stronger preference for offline transactions, where buyers can view properties in person, ask questions directly, and establish rapport with sellers. While younger, tech-savvy generations in urban areas are becoming more accustomed to digital platforms, many segments of the population, particularly in rural areas, still have limited exposure to or trust in online real estate transactions. Furthermore, internet connectivity and digital infrastructure, although improving, are not yet universally advanced across the entire Kingdom, which can hinder the widespread adoption of fully digital platforms in real estate. The reliance on offline channels thus remains strong due to these gaps in digital access.

While there are various real estate platforms in Saudi Arabia, many developers and property owners still prefer to rely on traditional offline methods like print advertisements, broker offices, and in-person property viewings. The volume of properties listed online is often lower compared to the vast inventory available offline. This creates an imbalance where potential buyers are more likely to encounter available homes through direct agent networks or walk-in interactions with developers. Real estate transactions in Saudi Arabia are still largely paper-based, involving significant documentation and official processes that require physical signatures, notarizations, and in-person meetings with governmental authorities. This bureaucracy contributes to the continued dominance of offline methods, as many key steps of the transaction still require in-person involvement.

Based on region, Dammam, the capital of Saudi Arabia’s Eastern Province, has emerged as the fastest-growing region in the Kingdom's residential real estate market. Several key factors contribute to this rapid expansion.​ Dammam's strategic position along the Arabian Gulf enhances its role as a vital hub for trade and logistics. The presence of King Fahd International Airport and the King Abdulaziz Port facilitates international connectivity, attracting businesses and expatriates. This influx of professionals and workers drives demand for residential accommodations. Additionally, the city's proximity to major industrial centers, including the King Salman Energy Park, positions it as a focal point for economic activities. ​

The Saudi government's Vision 2030 plan has significantly impacted Dammam's real estate sector. The Eastern Province has benefited from substantial investments, including over SAR 100 billion in real estate development. These investments have led to the construction of modern residential communities, enhancing the city's appeal to both investors and residents. Moreover, infrastructure projects such as the expansion of the Dammam-Jubail Highway and the King Fahd Causeway have improved connectivity, making the city more accessible and attractive for real estate development. ​

Dammam's population has been steadily increasing, with projections estimating a rise from 1.9 million in 2019 to 3.05 million by 2040. This rapid urbanization necessitates the development of diverse housing options, from affordable units to luxury villas, to accommodate the growing population. The demand for residential properties is further fueled by a young and dynamic workforce seeking modern living spaces. ​

The real estate market in Dammam offers attractive investment opportunities due to its affordability compared to other major cities like Riyadh and Jeddah. The absence of property taxes for foreign investors and the potential for high rental yields make Dammam an appealing destination for both local and international investors. In 2024, the city witnessed a 22.4% increase in residential transactions, reflecting the growing investor confidence and market activity.

Major companies operating in the Saudi Arabia Residential Real Estate Market are: 

• Christie International Real Estate
• ColdWell Banker Real Estate Company
• Al Habtoor Group
• DLF Ltd
• Hochtief Corporation
• IJM Corporation Berhad
• Engel & Volkers AG
• Lennar Corporation
• Raubex Group Ltd
• Pultegroup Inc.

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“The Saudi Arabian residential real estate market presents significant growth opportunities driven by a young, expanding population, rapid urbanization, and strong government support through Vision 2030. With a national goal to increase homeownership to 70% by 2030, substantial investments in housing infrastructure, mortgage accessibility, and smart city development are accelerating market demand. Additionally, the rise of public-private partnerships, integrated community planning, and digital transformation further enhance investment potential. The market is especially attractive for developers, financial institutions, and technology providers seeking long-term value in a transforming economic landscape focused on diversification and sustainable urban development.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.  

“Saudi Arabia Residential Real Estate Market, By Type (New Construction, Resale), By Category (Flats & Apartments, Individual Houses or Private Dwellings, Condominium, Townhouses, Others), By Mode (Online, Offline) By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of Saudi Arabia Residential Real Estate Market and provides statistics & information on Market size, structure and future Market growth. The report intends to provide cutting-edge Market intelligence and help decision-makers make sound investment decisions., The report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Saudi Arabia Residential Real Estate Market.

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