SAUDI Arabia’s real estate market continued its rapid expansion in 2024, with transactions surging 47 per cent year on year to $75.7 billion, according to property consultancy Sakan, reports Arab News.
The growth underscores the rising demand for housing and large-scale urban development as the kingdom pushes ahead with its economic diversification plans.
Total real estate transactions across the Gulf Cooperation Council reached $383bn, with Dubai accounting for 54pc of the total at $207bn, Sakan data showed.
The sector’s expansion is being driven by population growth and government-backed infrastructure projects aimed at transforming the region’s urban landscape.
The figures align with projections that the GCC’s real estate market will reach $4.67 trillion by 2025, according to data provider Statista.
This comes as Gulf economies, traditionally reliant on oil revenues, increasingly invest in property development to diversify income streams and ensure long-term economic stability.
“With more than $383bn in transactions, the GCC real estate market is on an unprecedented growth trajectory. PropTech is no longer an option; it is a necessity,” said Abdullah Al Saleh, the CEO of Sakan.
The report said the kingdom’s housing demand is set to climb further, with more than 800,000 new units needed across Saudi Arabia, Kuwait, and Oman by 2030.
Riyadh, at the heart of this expansion, is expected to see its population hit 9.6 million by the end of the decade, fuelled by an influx of expatriates and Vision 2030 initiatives to boost homeownership.
The report warned that affordability remains a challenge, with house rents rising 10.6pc in 2024, reflecting growing pressure on supply.
The findings indicate that a major factor driving the Gulf’s property boom is the growing trend of expatriates shifting from renting to homeownership.
In Saudi Arabia, remittance outflows climbed from $31.2 billion in 2019 to $38.4 billion in 2023, signalling a stronger financial commitment from foreign professionals.
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