Saudi Arabia Residential Real Estate Market – Industry Analysis, Size, Share, Growth, Trends, and Forecast The Saudi Arabia residential real estate market size is expected to expand at a CAGR of 11.9% during the forecast period, 2021–2028. The growth of the market is attributed to the rising population of the country.
In 2020, Saudi Arabia’s population was around 32 million, and it is growing at an annual rate of 2%. Since 45% of the country’s population is under the age of 20, young middle-class people dominated the purchase of houses. In 2019, the real estate transaction volume in major Saudi cities increased significantly. According to the 2030 Vision, the government intends to double the contribution of real estate to the country's GDP to 10% by 2020. The residential real estate market includes transactions such as sale, lease, and purchase of residential properties, such as villas, bungalows, and apartments. In the past few decades, the global residential real estate industry has achieved a commendable growth due to rapid urbanization in developing regions. Several large cities in developing countries have high requirements. Many government state bodies around the world are actively working to provide affordable housing, providing various profit opportunities for market participants around the world. The rapid urbanization has led to an increase in per capita income in various regions. This change has led to a substantial rise in the number of tourists, thereby significantly improving the efficiency of the real estate industry. The total housing supply in Riyadh in 2018 was estimated to be approximately 1.29 million units, up by 200,000 units in 2017. In Jeddah, the total housing supply in 2018 was 817,000 units, which was also an increase from the 813,000 units registered at the end of 2017. However, the housing supply in Riyadh is expected to increase by approximately 30,000 units by 2020. Jeddah’s housing supply is expected to increase by 16,000 units in 2020. Despite the current slowdown in the country’s housing market,