Saudi Arabia’s real estate market experienced a significant surge in the first half of 2024, with transactions rising by 38% to reach 106,700 deals, totaling approximately SAR 127.3 billion ($33.9 billion), according to a report by global real estate consultancy Knight Frank.
The report highlights that residential transactions dominated the market, accounting for 61% of the total property deals by value. The number of residential sales increased by 41%, totaling nearly 91,860 transactions, while the value of these deals surged by 48% to SAR 77.6 billion.
Several key factors contributed to the growth in residential real estate transactions. The Saudi Housing Program provided affordable home financing solutions to over 96,000 families in 2023, while the Development Housing Program, managed by the Ministry of Municipalities and Housing, assisted over 20,000 households. These initiatives have played a pivotal role in facilitating homeownership and driving demand in the residential sector.
Riyadh emerged as a standout performer among Saudi Arabia’s major cities, fueled by government initiatives aimed at enhancing its economic, cultural, and entertainment landscape. The capital’s residential transaction volumes soared by 49%, outpacing other major cities like Jeddah (27%), Dammam Metropolitan Area (29%), and Madinah (21%). Makkah was the only city to see a decline, with transaction volumes dropping by 6%.
The report also emphasizes the impact of government initiatives aimed at increasing housing supply and affordability. Programs like Sakani and Wafi have been instrumental in promoting homeownership among Saudi nationals, extending their reach to secondary and tertiary cities.
Saudi Arabia’s homeownership rate reached 63.74% by the end of 2023, surpassing the government’s target set by the Ministry of Municipalities and Housing. Additionally, the introduction of regulations allowing foreign investors to purchase property through the new Premium Residency Visa has further expanded the market, attracting international buyers and boosting demand.
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