RIYADH: Saudi Arabia’s real estate market continued its rapid expansion in 2024, with transactions surging 47 percent year on year to $75.7 billion, according to property consultancy Sakan.
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 $383 billion, with Dubai accounting for 54 percent of the total at $207 billion, 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 $383 billion 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, fueled by an influx of expatriates and Vision 2030 initiatives to boost homeownership.
The report warned that affordability remains a challenge, with house rents rising 10.6 percent in 2024, reflecting growing pressure on supply.
Expat investments
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, signaling a stronger financial commitment from foreign professionals. Dubai is also capitalizing on this trend, recently approving 457 plots for freehold conversion to attract expat buyers.
The Saudi market is benefiting from the influx of foreign professionals seeking long-term residence, coupled with rising investor confidence, Sakan said.
Expatriates now make up 52 percent of the Gulf’s population, and as governments introduce residency incentives and mortgage-friendly policies, their role in real estate is becoming more pronounced.
Luxury market
Dubai continued to dominate the high-end property segment, recording 388 transactions above $10 million in the 12 months leading to the third quarter of 2024 — the highest globally.
Saudi Arabia is also expanding its luxury real estate footprint, with The Red Sea Project attracting high-net-worth investors, while Qatar’s Qetaifan Island North is emerging as a prime destination for ultra-luxury developments, the report said.
Sakan added that branded residences — luxury homes affiliated with hotel chains — are gaining traction across the region. The Middle East now accounts for 12 percent of global supply, with Dubai leading the market, boasting 121 branded residence projects in development.
With 84.3 percent of the GCC’s population expected to live in cities by 2030, the report projects strong demand for residential and commercial real estate. While affordability concerns persist, it said government-backed initiatives, rising foreign investor interest, and shifting expat trends are driving a market poised for continued growth.
As Saudi Arabia and the UAE push forward with their ambitious giga-projects, the Gulf’s real estate sector is cementing its position as a critical driver of economic diversification.
