Saudi Arabia’s real estate sector saw significant growth in 2024, with 192 licenses issued for projects valued at 147 billion riyals ($40 billion).
This growth is supported by new regulations and laws that reflect the government's focus on strengthening the market.
Speaking at the Real Estate Future Forum, held in Riyadh from January 27 to 29, Saudi Minister of Municipalities and Housing Majid Al-Hogail said the sector has introduced over 20 new real estate regulations in recent years. These changes aim to boost the sector's appeal, vitality and reliability.
“The real estate sector in Saudi Arabia is no longer just about urban development; it is now a key driver of economic and social change, as well as sustainability and innovation,” said Al-Hogail.
He also pointed out that the forum offers unique global opportunities to grow the real estate sector and improve quality of life by building sustainable cities with services that meet the needs of residents.
On the private sector, Al-Hogail explained it currently manages 39% of the real estate market and aims to increase this to 70%. He also noted that the sector’s revenue has grown fourfold in the past three years.
Abdullah Al-Hammad, CEO of the Real Estate General Authority, said that the real estate sector’s contribution to the gross domestic product reached 12%, reflecting its growing importance in the national economy.
“The real estate sector achieved the highest participation rate in the labor market, with 25% of the participants in the social insurance system,” Al-Hammad said, emphasizing the sector’s role in employment generation and economic diversification.
More than 1,130 licenses for foreign real estate investments were issued during the third quarter of 2024, demonstrating increased international interest in the Saudi market, he remarked.
