Saudi Arabia is one of the most attractive countries in the Middle East for foreign investors and this is largely due to its booming real estate sector. Investment in property is the second biggest contributor to the country’s GDP - it currently contributes around 7% of the country’s GDP – a figure officials hope to increase to 10% by 2030.
The future vision 2030 pledge, which was announced in 2016, is seeking to increase diversification of Saudi Arabia economically, socially and culturally. One of the key sectors that will help achieve this goal is real estate; by providing support that will attract investments both locally and internationally. One of the ways this will be achieved is by lifting restrictions on foreign ownership of real estate, the result of this will be an influx of international companies and individuals investing in major Saudi cities.
The Kingdom's recent decision to move the regional headquarters of major companies to Saudi Arabia has enabled the luxury real estate market to flourish further. It provided more investment opportunities across the spectrum of potential investments including both private residences as well as commercial spaces and land that can be developed in the future.
The real estate market in the Kingdom of Saudi Arabia is expected to see an annual growth rate of 7.89%, from $64.43billion USD in 2023 to $94.19billion USD, by 2028 and this is largely thanks to the initiatives in The future vision 2030 pledge. The recent focus on sustainability and renewable energy solutions in Saudi Arabia has peaked international interest in investment opportunities further. The bold, innovative and pioneering NEOM project gives a small sample of the level of economic advancement the region is expected to see in the coming years.
All these extremely positive trends exemplify the Saudi real estate market is going to prosper greatly over the next decade which will continue to attract investors, which will in turn, benefit the whole region.