Saudi Arabia’s Property Market Booms in 2024

A Magnet for Investors
Saudi Arabia’s property sector in 2024 is a story of extraordinary growth, driven by ambitious reforms and bold investments as part of the kingdom’s Vision 2030 agenda. The government’s aim to diversify the economy beyond oil has set in motion a wave of urban development, transforming major cities such as Riyadh, Jeddah, and Neom into global centres of commerce and lifestyle. For investors, Saudi Arabia’s real estate market represents a unique opportunity, with potential returns underscored by robust growth, strategic reforms, and high foreign demand.

With property values up by approximately 6% this year alone, and both domestic and international interest on the rise, Saudi Arabia’s real estate landscape is not only expanding but evolving. A combination of younger populations seeking quality housing, business growth stimulating commercial space demand, and newly relaxed ownership laws for foreigners has reshaped the sector in significant ways. All indicators point to Saudi Arabia’s position as a rising star in the Middle Eastern property market, competing with established hubs like the UAE.

Saudi Arabia’s real estate market offers variety across residential, commercial, and mixed-use developments, creating opportunities for investors with different goals and appetites. In Riyadh, average property prices have risen to approximately SAR 5,200 (£1,000) per square metre, with luxury developments fetching upwards of SAR 8,500 (£1,635) per square metre in top locations. Other cities, such as Jeddah and Dammam, present more affordable investment opportunities, with averages between SAR 4,200 (£810) and SAR 6,500 (£1,260) per square metre. This range allows mid-range investors to tap into markets with growth potential while offering premium spaces for high-net-worth individuals in the capital.

Ajdan Real Estate, among others, reflects the sophistication now defining Saudi Arabia’s high-end property market. Although just one developer in the expanding field, Ajdan is making a mark by delivering exclusive projects that cater to discerning buyers who seek modern, amenity-rich living spaces.

A key factor propelling Saudi Arabia’s property market is the surge in infrastructure projects, including the much-anticipated Riyadh Metro and the expansion of King Abdulaziz International Airport in Jeddah. These projects, which improve connectivity and accessibility, are designed to facilitate business and travel, making these cities increasingly attractive to residents, businesses, and investors alike. Such development has also given rise to “smart” urban projects, with Neom’s futuristic vision leading the way. This mega-city’s infrastructure and eco-friendly design will likely set a new standard for urban planning in the region, with appeal for investors interested in sustainable property.

For those seeking to invest in Saudi Arabia’s residential real estate market, the outlook remains positive. Demand for housing is growing in response to the kingdom’s youthful demographic and a rising middle class with higher expectations for quality living environments. Developers are responding with a mix of mid-range and luxury properties, reflecting the diverse demand across the market. Recent government-backed incentives and mortgage options have also made home ownership more attainable for Saudi nationals, thus fuelling domestic property demand further.

On the commercial side, Riyadh’s business districts are thriving, with office spaces and retail outlets experiencing solid demand and rising values. Premium office spaces in the capital’s most sought-after areas now lease for around SAR 1,200 (£250) per square metre annually, driven by an influx of multinational corporations and local enterprises attracted by Saudi Arabia’s economic stability and pro-business reforms. Retail spaces, too, are commanding premium prices as consumer spending power rises. With expatriates contributing significantly to the economy, Saudi Arabia’s retail landscape is increasingly becoming a destination for high-end international brands.

An unprecedented openness to foreign investment is another factor transforming the market. For the first time, foreign investors can own property outright in designated zones, without requiring a local partner. This major shift has made Saudi Arabia’s real estate market more accessible, enabling international buyers to participate fully and helping to fuel competition. Saudi Arabia’s stable currency, the riyal, is pegged to the US dollar, providing a level of predictability that appeals to foreign investors wary of currency fluctuations.

Sustainability has become another central theme in Saudi Arabia’s property developments. Vision 2030 mandates sustainable practices, leading developers to embrace eco-friendly design, energy-efficient systems, and green spaces as integral parts of their projects. Ajdan Real Estate, for example, has aligned with these objectives, incorporating sustainable practices into their high-end properties. Investors can expect demand for such properties to rise, as global investment trends increasingly favour sustainable projects, adding long-term value for buyers looking at property as a future-proof asset.

As Saudi Arabia opens its doors to tourism, the property market is seeing heightened demand for hospitality real estate, from luxury hotels to serviced apartments. The Red Sea Project and Al-Ula’s transformation into a cultural hub are major initiatives expected to attract international tourists, generating revenue and creating jobs. These high-profile projects indicate that the kingdom is focusing on more than residential or commercial property; it is positioning itself as a major player in the tourism and hospitality sectors, both of which promise solid returns for investors.

Saudi Arabia’s property market in 2024, with its strong fundamentals and future-driven approach, offers an attractive landscape for investors who are prepared to navigate its unique regulatory and economic environment. While the property market is enjoying a significant upward trajectory, investors should consider factors such as the regulatory framework, location-specific market dynamics, and broader economic indicators when making decisions. Consulting with reputable local agents and financial advisors is advisable to better understand the market’s potential and to capitalise on emerging trends.

In summary, Saudi Arabia’s real estate market is a testament to the kingdom’s resilience and ambitious transformation. Backed by government-led development and a favourable investment climate, the sector promises steady growth and rewarding opportunities. With Vision 2030 steering Saudi Arabia into a new era, the real estate market offers a unique chance to be part of an evolving story, where innovation meets opportunity. As developers like Ajdan Real Estate continue to raise the bar with sophisticated, sustainable projects, Saudi Arabia is setting a new standard for property investment in the Middle East.

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.