Dublin, Jan. 20, 2026 (GLOBE NEWSWIRE) -- The "Saudi Arabia Residential Real Estate - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
The Saudi Arabia residential real estate market is projected to reach USD 164.85 billion in 2026, growing from USD 154.61 billion in 2025, with forecasts indicating a rise to USD 227.12 billion by 2031, at a CAGR of 6.62% over 2026-2031.
Driven by Vision 2030, government initiatives enhance homeownership, supported by strong population growth and increased mortgage liquidity. The demand-supply gap is prompting new housing developments to meet market needs. Sales remain predominant; however, a flourishing rental culture influences unit demographics, amenities, and lease durations. The surge in apartment construction is noted due to urban land scarcity, and affordable housing is buoyed by subsidies and expedited approval processes. Execution capacity is improving, as indicated by an 8% year-over-year rise in contract awards for real estate projects in H1 2024, with total construction spending at USD 49.3 billion.
Saudi Arabia Residential Real Estate Market Trends and Insights Government-Backed Housing Initiatives Under Vision 2030
Vision 2030 initiatives are making homeownership more accessible by targeting a 70% ownership rate, reducing down-payments to 5%, and increasing mortgage liquidity via securitization. The National Housing Company's USD 665 million deal with China State Construction Engineering for 20,000 homes highlights Saudi Arabia's commitment, alongside the Saudi Real Estate Refinance Company's USD 906 million transaction with Saudi National Bank, the kingdom's largest secondary-market deal. Land-release schemes and off-plan regulation reforms expand market access.
Persistent Housing Shortage Sustaining Demand for New Projects
Supply-demand imbalances persist, with Saudi Arabia needing over 800,000 additional homes by 2030. Current plans to deliver 300,000 units by 2025 fall short of demand, especially in Riyadh, exacerbating the shortage among mid-income households. The Real Estate General Authority is addressing quality standards and underserved regions.
High Construction Costs Driven by Material Price Volatility
Rising construction costs, driven by material price volatility and labor shortages, impact project budgets. Cement consumption for H1 2024 hit 22.6 million tons, affecting funding and timelines. Mega-projects over USD 850 billion consume resources, delaying completions. Remote projects face compounded freight costs. Although local manufacturing is expanding, a capacity gap remains.
Drivers and Restraints
- Growing young population and rising household formation boost residential demand
- Urban development and infrastructure projects create new residential hubs
- Economic reliance on oil prices affects consumer affordability and investor confidence
Segment Analysis
In 2025, sales represented 63.95% of the residential market, aligning with cultural preferences and supported by subsidized mortgages. Off-plan escrow-backed commitments foster security and confidence, with firms like ROSHN using virtual showrooms to expedite sales. The rental market is expected to grow at a 7.11% CAGR to 2031, driven by expatriate movements and younger demographic needs.
While apartments and condominiums accounted for 52.05% of revenue in 2025, with a 7.29% CAGR through 2031, these remain vital due to urban land constraints. Developers incorporate lifestyle amenities to satisfy consumer expectations. As plot costs and utility expenses rise, vertical living becomes more appealing.
The apartment market benefits from transit connectivity, aligning with sustainability goals. As digital permits and modular construction gain traction, domestic firms improve build cycles. Foreign collaboration brings innovation in design and energy efficiency. Over 70,000 apartment units are slated for delivery by 2027, maintaining their role in urban growth.
The report segments the Saudi Arabia residential real estate market by business model, property type, price band, mode of sale, and city, with forecasts in USD.
Additional Benefits from this Report:
- Access to market estimates (Excel format)
- 3 months of analyst support
Key Topics Covered
1 Introduction
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Insights and Dynamics
4.1 Market Overview
4.2 Residential Real Estate Buying Trends
4.3 Rental Yield Analysis
4.4 Regulatory Outlook
4.5 Technological Outlook
4.6 Affordable Housing Support Insights
4.7 Existing and Upcoming Projects Insights
4.8 Market Drivers
4.9 Market Restraints
4.10 Value / Supply-Chain Analysis
4.11 Porter's Five Forces
5 Residential Real Estate Market Size & Growth Forecasts
5.1 By Business Model
6 Residential Real Estate Market (Sales Model) Size & Growth Forecasts
6.1 By Property Type
6.2 By Price Band
6.3 By Mode of Sale
6.4 By City
7 Competitive Landscape
7.1 Market Concentration
7.2 Strategic Moves
7.3 Company Profiles
8 Market Opportunities & Future Outlook
8.1 White-Space & Unmet-Need Assessment
A selection of companies mentioned in this report includes, but is not limited to:
- Roshn
- Dar Al Arkan
- Saudi Real Estate Co (Alaqaria)
- Jabal Omar Development Co
- Emaar Middle East
- Sumou Real Estate
- Retal Urban Devt
- Cayan Group
- Nesma & Partners
- Umm Al Qura Devt
- Al Akaria HanMi
- Alinma Investment
- Alargan Projects
- Red Sea Global (residential zones)
- Al Saedan Real Estate
- Tamimi Group Real-Estate
- Maskan Arabia
- Thabat Real Estate
- Injaz Development
- Mohammed Al-Habib RE
For more information about this report visit https://www.researchandmarkets.com/r/c3nz69
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
