A Golden Era for Investors
Saudi Arabia’s property sector is on the rise in 2024, driven by the government’s ambitious Vision 2030 initiative to diversify the kingdom’s economy beyond oil and position it as a global investment powerhouse. With an impressive range of developments reshaping the nation’s urban landscapes, major cities such as Riyadh, Jeddah, and the futuristic Neom are attracting international investors who see Saudi Arabia as a new beacon of growth in the Middle East. The demand for high-quality residential, commercial, and mixed-use properties has surged, making the Saudi property market one of the most dynamic in the region.
The Roshn Group, a public investment-backed developer, embodies the kingdom’s commitment to modern urban living. Its projects showcase the government’s aim to create integrated communities with top-tier amenities, a feature that appeals to both local and international buyers. As property values steadily climb and the regulatory environment becomes increasingly favourable, the kingdom offers a rare opportunity for those seeking long-term, profitable investments in a rapidly growing market.
The kingdom’s property values have risen by around 6% year-on-year, with notable growth across residential and commercial sectors. This surge reflects a young population’s demand for quality housing and a rising number of foreign businesses establishing a presence in Saudi Arabia, drawn by economic stability and attractive policies. In 2024, property prices in Riyadh average approximately SAR 5,500 (£1,050) per square metre, with luxury developments in sought-after areas reaching SAR 8,800 (£1,680) per square metre. For those looking to invest outside the capital, Jeddah and Dammam offer more accessible entry points, with prices between SAR 4,500 (£860) and SAR 6,500 (£1,250) per square metre, catering to mid-range buyers.
This diversity in pricing has enabled investors with varying budgets to explore the Saudi market, positioning the kingdom as a compelling alternative to more established destinations like Dubai. Meanwhile, Roshn Group’s integrated community projects demonstrate the shift towards lifestyle-driven urban spaces, with developments blending residential, commercial, and leisure facilities in a way that appeals to modern tastes.
Urban Expansion and the Rise of Neom
The kingdom’s urban centres are not only expanding in size but are also transforming in character. Riyadh, the country’s commercial epicentre, is undergoing a remarkable transformation with its skyline now featuring world-class towers, state-of-the-art infrastructure, and premium residential complexes. The capital’s business districts are seeing unprecedented demand, with office spaces commanding rents of up to SAR 1,300 (£250) per square metre annually, reflecting Saudi Arabia’s economic vitality.
Jeddah, too, has attracted considerable investment as a prime coastal city and cultural hub. Its expanding infrastructure and proximity to the Red Sea tourism developments have increased its appeal to both domestic and international buyers, making it a city to watch for property appreciation. Meanwhile, the Neom mega-city project captures global attention as a cutting-edge example of high-tech urban planning. As Saudi Arabia’s flagship sustainable city, Neom aims to set new standards for eco-friendly and tech-driven urban design, drawing interest from environmentally conscious investors and tech enthusiasts alike.
Neom’s futuristic appeal is already attracting early investments, with experts forecasting that the city will become a high-return investment as it nears completion. It stands as a testament to Saudi Arabia’s ambition, showcasing the kingdom’s readiness to rival the most advanced urban centres globally.
Residential and Commercial Markets in Motion
Saudi Arabia’s residential sector continues to thrive, driven by a population that is young, aspirational, and keen on modern housing. In response, developers are diversifying their projects, offering options that cater to both the middle-income segment and high-net-worth individuals. Government incentives for homeownership and favourable mortgage rates have encouraged Saudi nationals to invest in property, leading to a buoyant market that international buyers are now keen to join.
On the commercial front, Riyadh’s business districts are flourishing, boosted by the arrival of multinational corporations setting up regional headquarters. The retail sector, too, is on the rise, supported by increased consumer spending and a growing expatriate community. High-end retail spaces are particularly sought-after, with luxury brands eager to establish a foothold in this rapidly evolving market. Mixed-use developments are becoming increasingly popular, as they offer investors multiple revenue streams within a single project, blending residential, retail, and office spaces in a cohesive, lifestyle-oriented environment.
Tourism and Infrastructure – Catalysts for Growth
Saudi Arabia’s property market growth is closely tied to its tourism sector, which has opened new opportunities for investors in hospitality real estate. The kingdom’s decision to welcome international tourists has sparked demand for luxury hotels, holiday rentals, and serviced apartments. The Red Sea Project, for instance, is projected to draw millions of tourists annually, creating a surge in the need for accommodation and leisure facilities. For investors, the tourism boom translates into a promising chance to capitalise on hospitality properties that are expected to enjoy high occupancy rates and premium rental returns.
Moreover, the kingdom’s commitment to infrastructure investment has given property markets a significant boost. Projects like the Riyadh Metro and King Abdulaziz International Airport’s expansion are enhancing connectivity, making Saudi Arabia more accessible and attractive for both residents and international visitors. These developments reflect the government’s strategy to build a sustainable, well-connected urban infrastructure, which will likely yield long-term benefits for property investors.
Foreign Investment and Sustainable Development
Saudi Arabia’s property market has become increasingly attractive to foreign investors, thanks to regulatory changes that allow international buyers to own property outright in designated zones. This shift has positioned Saudi Arabia as a secure, stable investment destination, with foreign investors drawn by the riyal’s peg to the US dollar, which provides a hedge against currency volatility. As a result, investors from the United Kingdom, the United States, and other major markets are seeing Saudi Arabia as a viable alternative to traditional real estate hotspots in the region.
A commitment to sustainability is another appealing aspect of the kingdom’s property sector. Vision 2030 promotes eco-friendly development, with many projects incorporating sustainable materials, energy-efficient designs, and green spaces. The Roshn Group has embraced this ethos, integrating sustainable practices into its developments. Such properties are expected to experience high demand as global awareness of environmental issues grows, adding long-term value and enhancing appeal among eco-conscious buyers.
The Path Ahead for Investors
For investors, Saudi Arabia’s property market in 2024 presents a wide range of opportunities across residential, commercial, and tourism sectors. The kingdom’s favourable investment climate, backed by strong economic fundamentals and government-led development, makes it a compelling destination for property investments. As Saudi Arabia continues to implement its Vision 2030 agenda, the property market’s growth is set to persist, providing investors with stable returns and diversified options.
Saudi Arabia’s property sector has demonstrated resilience and adaptability, attracting a wave of international interest and setting new standards in urban development. With mega-projects like Neom shaping the future and reputable developers like Roshn Group leading the charge in sustainability, Saudi Arabia is establishing itself as a regional powerhouse in real estate. For investors ready to embrace a rapidly modernising market, the kingdom offers a dynamic landscape of opportunity and growth potential.
Financial Disclaimer
The information provided in this article is for general informational purposes only and does not constitute financial advice. While every effort has been made to ensure the accuracy of the content, market conditions may change, and unforeseen risks may arise. The author and publisher of this article do not accept liability for any losses or damages arising directly or indirectly from the use of the information contained herein.