Residential sales in Saudi Arabia reach SAR 118bln in 2024, signalling robust real estate growth
Residential transactions across Riyadh, Jeddah and Dammam Metropolitan Area touched SAR 118 billion (USD 32 billion) in 2024; a 50% increase compared to 2023
Grade A office-focused sectors in the Kingdom, such as financial and business services, experienced a growth of 5.3% between 2023 and 2024
Hospitality sector continues to thrive, with ADR reaching SAR 726 in 2024, having already surpassed the goal of 100 million tourists, seven years ahead of schedule
Riyadh, Saudi Arabia: Deloitte, the leading global professional services firm, has released its annual KSA real estate market review, highlighting another strong year for the Kingdom across all sectors. According to the report, Saudi Arabia's real estate market is set to experience robust growth through 2025, fuelled by the Kingdom's Vision 2030 reform agenda and commitment to economic diversification. Key developments, including major events like EXPO 2030 and the FIFA World Cup 2034™, alongside giga-projects such as NEOM, the Red Sea, and Qiddiya, are expected to drive the creation of new urban hubs and tourism destinations.
The outlook remains optimistic with the National Investment Strategy projecting FDI inflows to reach SAR 388 billion (USD 103.4 billion) by 2030, reflecting a compound annual growth rate (CAGR) of 22% from the 2023 figure of SAR 95.9 billion (USD 25.5 billion).
Oliver Morgan, Partner and Head of Real Estate at Deloitte Middle East, commented: 'Saudi Arabia's real estate sector is experiencing robust growth, driven by strategic government initiatives, strong economic fundamentals, substantial infrastructure investments and expanding international trade. These diverse growth drivers position Saudi Arabia as one of the region's most dynamic and promising real estate markets. Sustainable and smart developments, increasing demand for luxury and mixed-use properties, and a growing focus on affordable housing to serve the Kingdom's expanding population have caused residential transactions to rise steadily. Riyadh continues to solidify its position as the primary business hub, attracting significant foreign investment.'
Market performance overview
Residential
Fuelled by Saudi Arabia's economic expansion and population growth, transaction volume and value across Riyadh, Jeddah and Dammam Metropolitan Area (DMA) for residential real estate increased steadily by approximately 50% between 2023 and 2024, growing with residential supply. This reflects the increasing market maturity and the planned phasing approach adopted by developers.
According to the Deloitte report, the total number of residential transactions across Riyadh, Jeddah and DMA reached 102,522 in 2024, with a total value of SAR 118 billion (USD 32 billion). Sales rates in Riyadh increased by 5% for apartments and 12% for villas, while apartments in Jeddah and DMA experienced growth of approximately 1% over the past 12 months.
In Riyadh, approximately 69% of apartments sold in the last 12 months were priced between SAR 250,000 and SAR 1 million, (USD 66,000 to USD 266,000), primarily targeting the low to mid-income segments.
Office market
With Saudi Arabia's GDP reaching SAR 3 trillion (USD 786 billion) in 2024 and forecasted to grow to SAR 3.7 trillion (USD 981 billion) by 2030 – a CAGR of 3.4% over the same period – demand for office space remains strong. Grade A office-focused sectors, such as financial and business services, experienced a growth of 5.3% between 2023 and 2024. Office supply in Riyadh, Jeddah and DMA stood at 6.4 million sqm, 2.2 million sqm, and 1.5 million sqm, respectively at the end of 2024.
Notable developments include Laysen Valley, STC Square Phase 1, and the New East project in Riyadh, added a total gross leasable area (GLA) of 145,000 sqm. A significant portion of the King Abdullah Financial District (KAFD) office supply was also successfully delivered, reflecting high pre-leasing and leasing rates. In Jeddah, an additional 150,000 sqm GLA was delivered encompassing projects like JCDC and Darb Al Haramain. The Regional Headquarters Program, launched in Q1 2024, resulted in 571 companies relocating to Riyadh by the end of the year. The Saudi government also introduced tax breaks, streamlined regulations, and broke ground on several large-scale projects, including New Murabba and Diriyah Gate, expected to offer extensive office space upon completion.
Hospitality
Saudi Arabia's hospitality sector continues to thrive, with the Average Daily Rate (ADR) increasing to SAR 716 in 2024, up from SAR 702 in 2023. This was boosted by the Kingdom surpassing the Vision 2030 goal of 100 million tourists a year, seven years ahead of schedule.
Riyadh, specifically, has outperformed global cities like Hong Kong, Madrid and Dubai, with ADR climbing to SAR 895 in 2024. This surge has been attributed to the ongoing strength of corporate and leisure demand and the successful Riyadh Seasons event, which stimulated domestic and international tourist inflows. Jeddah's market remains a critical tourism gateway. The coastal city's ADR stood at SAR 680, and new developments along the waterfront are expected to strengthen market performance as tourism initiatives ramp up ahead of global events like Expo 2030 and FIFA World Cup 2034.
Saudi Arabia's hospitality sector's growth is further fuelled by cultural and entertainment investments, including efforts to revitalize Saudi Arabia's heritage landmarks and introduce new attractions such as AlUla and the New Murabba project. Giga-projects like NEOM and Amaala promise to elevate the hospitality market.
Retail
Oxford Economics estimates that total retail sales volume in KSA will experience continued growth at a CAGR of 4.4% between 2025 and 2027. The development of retail assets which offer integrated entertainment and immersive experiences continues to be a key focus for retail operators throughout the Kingdom, as customer preferences continue to evolve, moving away from traditional standalone retail developments.
Throughout 2024, retail rents in Saudi Arabia increased marginally due to a high volume of supply and relatively stable demand. Older retail developments are struggling as newer developments with more diverse offerings are capturing market share.
The Deloitte report also highlights the growing trend of pop-up stores – temporary retail spaces that create a unique customer experience and drive brand awareness. In KSA, this trend is gaining traction in major retail malls, offering a dynamic addition to the traditional retail landscape.
Industrial & Logistics
The growth in demand in the warehousing and logistics sector is primarily attributed to various initiatives and incentives deployed as part of the 2030 Vision, including the National Industrial Development and Logistics program, Special Economic Zones such as Riyadh Integrated Logistics Zone, Saudi Port Authority initiatives enhancing port infrastructure in Jeddah & DMA, and the Vision 2030 logistics master plan. Demand for warehousing and logistics will continue growing due to the enhancement of the aviation infrastructure and increase in air cargo. Based on statistics from the Saudi Port Authority, cargo throughout increased by 14% in 2024 compared to 2023.
The report features also an analysis on the development approaches to successfully deliver major sports assets, the current KSA tax context with a Real Estate focus, and how the mortgage market has evolved in KSA.
For full insights and detailed market analysis, access the full report here.
-Ends-
© 2025 Deloitte & Touche (M.E.). All rights reserved.
In this press release references to 'Deloitte' are references to one or more of Deloitte Touche Tohmatsu Limited ('DTTL') a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms. The information contained in this press release is correct at the time of going to press.
About Deloitte & Touche (M.E.) LLP:
Deloitte & Touche (M.E.) LLP ('DME') is the affiliate for the territories of the Middle East and Cyprus of Deloitte NSE LLP ('NSE'), a UK limited liability partnership and member firms of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ('DTTL').
DME is a leading professional services organization established in the Middle East region with uninterrupted presence since 1926. DME's presence in the Middle East region is established through its affiliated independent legal entities, which are licensed to operate and to provide services under the applicable laws and regulations of the relevant country. DME's affiliates and related entities cannot oblige each other and/or DME, and when providing services, each affiliate and related entity engages directly and independently with its own clients and shall only be liable for its own acts or omissions and not those of any other affiliate.
DME provides audit and assurance, consulting, financial advisory, risk advisory and tax, and legal services through 23 offices in 15 countries with more than 7,000 partners, directors and staff.
About Deloitte:
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ('DTTL'), its global network of member firms, and their related entities (collectively, the 'Deloitte organization'). DTTL (also referred to as 'Deloitte Global') and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm sand related entity is liable only for its own acts and omissions, and not those of each other. DTTL, NSE and DME do not provide services to clients. Please see www.deloitte.com/about to learn more.
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Contact:
Bassel Barakat
External Communications |PR and Media Lead
Deloitte Middle East
Email: bbarakat@deloitte.com | www.deloitte.com
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