Once overshadowed by oil, Saudi Arabia is now witnessing a profound transformation. The Increase in Real Estate Market Value in Saudi Arabia is not merely the result… rather, it is the outcome of strategic planning, massive infrastructure investment, and regulatory reforms designed to unlock the nation’s full potential.
As Vision 2030 accelerates the diversification of the Saudi economy, sectors such as tourism, technology, and renewable energy are reshaping demand for residential and commercial properties alike. This has created an environment where homeowners and investors can look confidently toward long-term growth.
What Is the Value of the Real Estate Market in Saudi Arabia ?
According to Crown Continental, the residential sector alone is projected to reach nearly USD 130.8 billion by 2033, while DarGlobal estimates the overall market could approach USD 2.31 trillion by 2025. These figures reflect more than economic ambition… they reveal a society reimagining its cities, infrastructure, and lifestyle.
Rising Property Prices in Saudi Arabia
The surge in demand is visible across major cities. In Riyadh, apartment prices climbed over 10% year-on-year in early 2025, while the national residential price index rose 1.9% in the same period. This upward trend of Increase in Real Estate Market Value in Saudi Arabia is fueled by population growth, expanding middle-class aspirations, and an evolving legal landscape that welcomes foreign ownership.
What Is the Real Estate Market in Saudi Arabia 2025?
By 2025, Saudi Arabia’s real estate sector has become a powerful driver of Vision 2030. With over USD 1 trillion allocated to giga-projects – like NEOM, The Line, and Diriyah Gate – new urban hubs and tourism destinations are materializing at an unprecedented pace. According to PwC, the market is expected to grow by 30% by the end of the decade, driven by both domestic and international investment.
Beyond grand projects, regulatory changes have played a critical role. For example, the Premium Residency program, sometimes called the “Saudi Green Card,” allows eligible foreign nationals to live, work, and own property without a Saudi sponsor, unlocking fresh capital flows and diversifying demand.
What Is the ROI of Real Estate in Saudi Arabia?
For investors evaluating returns, the ROI of real estate in Saudi Arabia remains compelling. Properties in key cities like Riyadh and Jeddah currently offer annual yields between 5% and 9%, underpinned by strong rental demand and more accessible mortgage financing. According to Omnia Capital, real estate transactions surged to SAR 109 billion in Q1 2025, a 37% year-over-year increase, showing evidence of rising investor confidence.
Considering Long-Term Investment in Saudi Real Estate ?
Now is the time to go for it! The current environment is arguably the most favorable in decades. The combination of regulatory reforms, major infrastructure pipelines, and a youthful, growing population creates the ideal conditions for sustained value appreciation. The General Authority for Statistics reported a 2.3% increase in the Real Estate Price Index in 2024, reinforcing market stability and offering reassurance to homeowners and investors alike.
Factors Increasing the Market Value of Real Estate
While national policies and giga-projects set the stage, there are practical factors that directly increase your property’s market value over time. Whether you are a homeowner or investor, understanding these elements can help you unlock maximum returns:
1. Proximity to Infrastructure and Giga-Projects
Properties near large developments (such as NEOM, Qiddiya, and The Line) tend to see faster appreciation. Roads, airports, schools, and public transport hubs all enhance neighborhood desirability, lifting property values steadily.
2. Modern Enhancements and Renovations
Upgrades can have a dramatic impact:
- Modernizing kitchens and bathrooms
- Installing energy-efficient windows
- Adding smart home systems
- Landscaping and improving curb appeal
These improvements not only increase resale value but can boost rental income as well.
3. Regulatory Reforms Supporting Foreign Ownership
New policies have opened up property ownership to a broader pool of investors, creating more liquidity and driving prices upward in key districts.
4. Expanding Middle-Class Demand
A growing middle class with higher purchasing power is fueling sustained demand for quality housing, especially properties offering modern amenities and long-term value.
5. Growth in Tourism and Entertainment
As Saudi Arabia prepares to host major events such as EXPO 2030 and the FIFA World Cup 2034™, demand for hotels, resorts, and retail spaces is surging, further strengthening the commercial property segment.
How to Increase Your Property’s Value Over Time
If you are planning to sell or rent your property in the years ahead, consider these practical strategies to gradually raise its market value:
- Invest in Modern Finishes: Upgrade outdated interiors with contemporary fixtures and finishes.
- Improve Energy Efficiency: Add insulation, efficient lighting, and solar panels to reduce costs and attract eco-conscious buyers.
- Enhance Outdoor Spaces: Gardens, shaded patios, and landscaping can dramatically boost first impressions.
- Leverage Smart Technology: Home automation systems are increasingly valued by tenants and buyers alike.
- Stay Informed About Local Developments: Monitor new infrastructure projects or zoning changes in your area, which can drive long-term appreciation.
For more practical tips, see Simple Improvements That Boost Your Property’s Value and The Four Pillars of Real Estate.
Conclusion
The increase in real estate market value in Saudi Arabia is rooted in well-planned reforms, massive investment, and an ambitious national vision. Whether you are an investor seeking strong ROI, or a homeowner focused on building equity, this is much more than a market surge… it is a once-in-a-generation transformation in motion.
To learn more about the forces driving this change, explore 7 Factors That Increase or Decrease Property Value.
Keep your eye on Saudi Arabia’s real estate market, trends, and more, through My Bayut.
