Saudi Arabia’s Real Estate Sector Records SAR118 Billion in Transactions in 2024, Driven by Vision 2030 Growth
Riyadh, March 4, 2025 – Saudi Arabia’s residential real estate sector saw transactions reach SAR118 billion ($32 billion) in 2024, according to a new Deloitte report, highlighting the sector’s strong momentum and alignment with Vision 2030’s economic transformation.
The report projects continued robust growth through 2025, fueled by giga-projects such as NEOM, Qiddiya, and the Red Sea, alongside major global events like Expo 2030 and the FIFA World Cup 2034, which are expected to boost demand for urban developments and tourism infrastructure.
Surging Demand in Residential Real Estate
The volume and value of residential real estate transactions in key cities—including Riyadh, Jeddah, and the Dammam Metropolitan Area (DMA)—grew by approximately 50% year-on-year, signaling increasing market maturity and a phased development approach by real estate players.
In 2024, residential transactions totaled 102,522, with price growth recorded across major cities:
Riyadh: Sales prices increased by 5% for apartments and 12% for villas.
Jeddah & DMA: Apartment prices saw a 1% increase over 12 months.
Approximately 69% of apartment sales in Riyadh were priced between SAR250,000 and SAR1 million ($66,000 to $266,000), catering primarily to low- and middle-income buyers.
Office Market Sees Strong Growth, Driven by Business Expansion
Saudi Arabia’s GDP reached SAR3 trillion ($786 billion) in 2024 and is forecasted to grow to SAR3.7 trillion ($981 billion) by 2030, fueling demand for high-quality office spaces.
The Grade A office segment witnessed 5.3% growth between 2023 and 2024, particularly in the financial and business services sector. Notable developments include:
Laysen Valley, STC Square Phase 1, and the New East project in Riyadh, adding 145,000 sqm of Gross Leasable Area (GLA).
King Abdullah Financial District (KAFD) continued to achieve high pre-leasing and leasing rates.
Jeddah saw 150,000 sqm of new office space delivered, including the JCDC and Darb Al Haramain projects.
The Regional Headquarters Program, introduced in Q1 2024, saw 571 multinational companies relocate to Riyadh, further solidifying the capital as the region’s primary business hub.
Hospitality Sector Outperforms, Surpassing Vision 2030 Tourism Targets
Saudi Arabia's hospitality industry saw record-breaking performance in 2024, with Average Daily Rates (ADR) rising to SAR716, driven by:
Vision 2030’s tourism push, with 100 million annual visitors achieved seven years ahead of schedule.
Riyadh outpacing global cities like Hong Kong and Madrid, with ADR climbing to SAR895 in 2024.
Jeddah maintaining its role as a key tourism gateway, with new developments strengthening its hospitality sector.
Cultural and entertainment investments—including AlUla, Diriyah, and the New Murabba project—are expected to further bolster the hospitality sector ahead of Expo 2030 and the FIFA World Cup 2034.
Retail Market Expands with Integrated Shopping Experiences
Retail sales in Saudi Arabia are projected to grow at a CAGR of 4.4% between 2025 and 2027, according to Oxford Economics.
The focus has shifted to experiential retail, with:
New malls incorporating entertainment and immersive experiences.
Older retail centers facing challenges as newer developments attract more footfall.
The rise of pop-up stores in major malls, providing dynamic retail experiences.
Logistics and Industrial Sector Strengthened by Vision 2030 Initiatives
Saudi Arabia’s warehousing and logistics sector continued to expand in 2024, driven by:
The National Industrial Development and Logistics Program.
Special Economic Zones, such as Riyadh Integrated Logistics Zone.
Enhanced port infrastructure by the Saudi Port Authority.
Aviation infrastructure upgrades, boosting air cargo volume by 14% year-on-year.
Saudi Arabia’s Real Estate Market Poised for Further Growth
Oliver Morgan, Partner and Head of Real Estate at Deloitte Middle East, emphasized Saudi Arabia’s rising global appeal:
“Saudi Arabia’s real estate sector is experiencing unprecedented growth, driven by strategic government initiatives, substantial infrastructure investments, and an expanding international business presence. The combination of smart developments, rising demand for luxury and mixed-use properties, and a focus on affordable housing has positioned Saudi Arabia as one of the region’s most dynamic real estate markets.”
With FDI inflows projected to reach SAR388 billion ($103.4 billion) by 2030, and large-scale projects transforming the urban landscape, Saudi Arabia remains a premier destination for investors and developers.