Saudi Arabia’s residential real estate market has experienced significant growth, with new residential mortgages exceeding USD16 billion in the first nine months of 2024. This surge reflects a shift towards urban living, with Riyadh and Jeddah leading the expansion. Developers are increasingly focusing on apartment construction to meet changing consumer preferences.
Vision 2030’s Impact on Real Estate
The Kingdom’s Vision 2030 initiative aims to increase the homeownership rate to 70% by 2030. This goal has stimulated the real estate market by promoting economic diversification and urban development. International investors can now purchase real estate and participate in development projects, further boosting the sector.
Moreover, in the first half of 2024, the total number of real estate transactions across all asset classes surged by 38%, reaching over 106,700. Their total value leapt by 50% to SAR 127.3 billion, indicating robust market activity.
Bank Lending Supports Market Growth
Additionally, Saudi banks have played a crucial role in this expansion, with real estate loan portfolios reaching SR800.5 billion (USD213.5 billion) in the first quarter of 2024. This financial support has been instrumental in facilitating increased homeownership.
Vision 2030 drives economic diversification, expecting the real estate sector to significantly increase its contribution to Saudi Arabia’s GDP. The government’s initiatives focus on revamping the real estate and infrastructure sectors, ensuring a more dynamic and competitive market.
These efforts have successfully attracted substantial investments, creating opportunities for sustainable growth and development within the housing market. The future of Saudi Arabia’s real estate sector appears bright, fueled by innovative policies and strategic economic planning.
