Population growth, regulatory reforms and tourism reshaping Saudi real estate sector

RIYADH: Saudi Arabia’s real estate sector is poised for robust expansion thanks to an increasing population, growth in the tourism industry, and friendly government policies and regulatory reforms, experts told Arab News. 

The Kingdom’s Real Estate General Authority expects the property market to reach $101.62 billion by 2029, with an anticipated compound annual growth rate of 8 percent from 2024.

Speaking to Arab News, Matthew Green, head of research at CBRE in the Middle East and North Africa region, said that the expansion of the Kingdom’s real estate market is also influenced by various other factors including rapid urbanization, infrastructure development, and the rise in foreign direct investments.

“Saudi Arabia’s real estate market is supported primarily by the government’s aggressive investment program, particularly toward the giga-projects, which is driving non-oil production, fueling employment and population growth, and attracting FDI,” said Green. 

He added: “The country’s supportive demographics, which are characterized by the presence of a significant young and well-educated population, increasingly liberalized, and a rising middle class with greater disposable income levels than previous generations is also driving the growth of the real estate market in the Kingdom.”