Saudi Arabia’s Real Estate Market Outlook For 2024

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Saudi Arabia’s real estate market records strong activity and impressive transformation. In 2024, this market recorded a robust start with a substantial increase in the number of delivered residential units. The increasing demand for residential units in Saudi Arabia especially from the younger generation as they prefer independent living arrangements, this increased demand results in the impressive growth of Saudi’s real estate market and is expected to grow more in the coming years. 

 

The population in Saudi Arabia is large and increasing. With the increasing population, the demand for housing and commercial properties in Saudi Arabia is also growing. People are looking for luxurious and modern properties and Dubai’s real estate market is continuously evolving and fulfilling the demands of potential investors and discerning homebuyers. It introduced various projects in prime locations of the kingdom and in the future, it is expected to grow more rapidly and successfully. 

 

According to JLL’s KSA Real Estate Market Dynamics Report, Saudi Arabia’s real estate market maintains its upward trajectory in the property sector. The residential industry started strong in 2024 by delivering 27,500 units in Riyadh and Jeddah. This increased the total stock to 1.46 million units in the capital and 891,000 units in Jeddah. Residential sale prices experienced a 10% year-on-year increase in Riyadh whilst average rent grew by 9% annually. In Jeddah, the growth was slightly slower with sale prices rising by 5% and rent increasing by 4% year-on-year during the same period. 

Some Facts And Figures About Saudi Arabia’s Real Estate Market For 2024 

The Saudi Arabian economy is expected to grow by 1.5 percent in 2024.

 

Villas Price Rate Growth In Saudi’s Real Estate Market In 2024 

 

  • In the residential market, the average villa price in Riyadh improved by 3.3% to reach SAR 5,824 per square meter. 

 

  • The average price for a villa in Jeddah improved by 0.8% to reach SAR 5,707 per square meter. 

 

  • The average prices for villas in Dammam and Khobar have risen at the rate of 0.4% and 1.2% respectively. 

 

Price Rate In The Apartment Segment In Saudi’s Real Estate Market In 2024 

 

  • The average apartment rise in Riyadh increased to SAR 4,971 per square meter highlighting a 6.6% rise per year. 

 

  • The average prices of apartments in Jeddah declined year by year by 0.9% 
  • In Dammam, the average price of apartments declined by 0.6 % in 2024

 

  • The average price for apartments remained unchanged at SAR 3,415 per square meter.  

 

Industrial Property Rates In Saudi Arabia’s Real Estate Market In 2024 

 

  • Industrial and logistics average rates in Riyadh improved by 2.8% reaching SAR 203 per square meter. 

 

  • Dammam and Khobar’s average industrial rents fell at the rate of 0.7% and 2.6% in the second quarter of the year 2024. 

 

Saudi’s Kingdom Occupancy Rate In The Year 2024 

 

  • The Kingdom’s average occupancy rate rose by 0.9% points, its ADR climbed by 6.7% and we have seen an 8.2% increase in RevPAR over this period. 

 

  • Average occupancy in Riyadh fell by 1.5% points while ADR increased by 25.5% resulting in a RevPAR expansion of 22.4%.

Major Real Estate Developments In Saudi Arabia In 2024

The Kingdom of Saudi Arabia is experiencing a remarkable and outstanding performance in the property sector. The rising prices and increasing rental rates across major cities in Saudi Arabia occur due to the high demand for real estate properties.  

 

The Saudi government also introduced many reforms and initiatives such as the Vision 2030 agenda that boost real estate investment in the year 2024. Despite challenges like rising construction costs, the Saudi property market remains on the same positive trajectory, with further expansion expected.  

 

Let’s have a look at major real estate developments in Saudi Arabia in 2024 that play a pivotal role in Saudi Arabia’s real estate market and its rapid growth this year. 

 

  1. Norlana 

Situated on the coast of the Gulf of Aqaba, Norlana is an ultra-modern residential community in northwest Saudi Arabia. Norlana is a part of NEOM and consists of 711 properties including mansions, apartments, and beach villas. With state-of-the-art amenities, the residents will enjoy the stunning views of the surroundings. This new residential project offers an ultra-luxurious lifestyle. 

 

  1. 2. Utamo

As an exclusive part of NEOM, Utamo is an impressive destination for art and culture. Utamo will be constructed within a mountain cocoon and designed to seamlessly blend architecture with the surrounding natural beauty.  It will also include a variety of cultural and recreational amenities, including theaters, galleries, and restaurants. Utamo will be the perfect place for residents to relax and reconnect with nature.

 

  1. Siranna 

Another project announced by NEOM is the Siranna. It is an exclusive tourist destination and will consist of a 65-key luxury hotel and 35-high end residential properties. The most admirable feature of this development is uninterrupted views of the Red Sea. The architectural design of the Siranna is exceptional and it is a place to visit once in a lifetime. 

 

  1. Epicon 

Epicon is a new luxury development on the Gulf of Aqaba. It will feature two striking towers up to 275 meters tall consisting of a 41-key ultra-premium hotel and luxury residences. A 120-room resort and 45 beachfront villas situated near the hotel are also included in this premium development. 

Final Thoughts 

As Saudi Arabia marches towards its ambitious Vision 2030, the real estate sector plays a pivotal role in transforming the country into a global investment hub. With several mega projects set for completion and evolving investor trends, 2024 promises to be a crucial year for the Kingdom’s real estate market. Investors should take advantage of the current opportunities to capitalize on the Kingdom’s growth potential. As a potential investor or discerning homebuyer, if you are interested in Saudi’s real estate investment, then for professional and better guidelines you can contact sothebysrealty. sa/en a renowned real estate firm in Saudi Arabia with a proven track record.