Saudi Arabia Condominiums and Apartments Market: Urban Living, Residential Expansion & Growth Outlook

Rising urbanisation, a young and fast-growing population, and the government's sweeping housing agenda under Vision 2030 are combining to reshape residential real estate across the Kingdom. According to IMARC Group's latest data, the Saudi Arabia condominiums and apartments market size reached USD 12.6 Billion in 2025. Looking forward, IMARC Group estimates the market to reach USD 22.1 Billion by 2034, exhibiting a CAGR of 6.46% from 2026-2034. The rising popularity of short-to-medium-term stays among tourists and business professionals, along with various infrastructure development projects, is primarily augmenting market growth.

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Saudi Arabia Condominiums and Apartments Market Growth Drivers:

Vision 2030 Housing Programmes and Government Subsidies

The Sakani programme alone has facilitated over 800,000 subsidised housing contracts, pushing national homeownership to 63.74% as of the latest figures. The government has committed SAR 4.9 trillion toward infrastructure and housing under Vision 2030, with the Saudi Central Bank cutting its repurchase rate to 4.25% in late 2025 to ease mortgage costs further. The Saudi Central Bank's earlier move to lower the down-payment requirement to just 5% for nationals triggered a 53% surge in housing transactions in Jeddah alone. Few markets anywhere see demand shaped this directly by state policy.

Urbanisation and Expatriate Population Growth

Over 85% of Saudi Arabia's 36.4 million residents now live in cities, and more than 14 million expatriates are employed in the Kingdom, making up roughly 77% of the private-sector workforce. This concentration of workers and professionals in Riyadh, Jeddah, and Dammam keeps apartment demand structurally high. Riyadh alone accounts for 46% of total residential market revenue, with apartment rents in Jeddah rising 2.6% year-on-year to around SAR 25,013. Developers like Dar Al Arkan are responding by building 27,500 new units across both cities to meet this steady inflow of residents.

Mega-Project Development Stimulating Residential Demand

Giga-projects are generating residential demand at a scale that few countries have seen before. The USD 20 billion Diriyah Gate project will deliver 20,000 dwelling units, the USD 17 billion King Salman Park neighbourhood adds 12,000 more, and NEOM is planned to house millions of residents near high-value employment hubs. Collectively, these developments channel over USD 3.3 billion into mixed-use residential assets. Riyadh Development Company was also appointed to manage a USD 559 million real estate fund covering 1.8 million square metres in eastern Riyadh, adding further pipeline to an already supply-stretched market.

Saudi Arabia Condominiums and Apartments Market Trends:

Smart and Sustainable Building Integration

Developers are embedding smart-home technology and green building standards into new apartment blocks as standard practice, not a premium add-on. NEOM launched a smart residential district with AI-managed energy systems and IoT-enabled homes in late 2025. Tilal Real Estate's USD 1.63 billion Heart of Khobar mixed-use project in Al Khobar is designed around sustainability across 268,813 square metres of residential, office, and retail space. Banan City in Riyadh, a joint venture between Talaat Moustafa Group and Al Muhaidib, will deliver 27,000 units across 10 million square metres with integrated green spaces and smart community infrastructure.

Foreign Ownership Rules Opening a New Buyer Segment

Saudi Arabia opened its residential property market to non-Saudi buyers through a new foreign ownership law in early 2026, targeting 411 million square metres of idle land through a tiered White Land Tax to curb speculation and unlock supply. This is a structural change that had not previously existed in the market. Off-plan projects in Jeddah and Riyadh have already responded with branded residences pitched squarely at international buyers. Foreign investment in real estate reached USD 9.8 billion in 2024, and that figure is widely expected to climb once international buyers can hold title directly.

PropTech and Digital Property Platforms Streamlining Transactions

Online property portals and AI-powered valuation tools are changing how buyers, renters, and investors interact with Saudi Arabia's apartment market. Vision 2030-backed AI tools now match over 80% of home seekers with suitable listings in Riyadh and Jeddah almost instantly, compressing what used to be a weeks-long search. The Etmam programme has shortened government approval cycles for developers, helping them move from design to groundbreaking faster. With 61% of all real estate transactions now classified as residential and nearly 93,700 deals worth USD 20.6 billion recorded recently, the digital infrastructure is handling transaction volume that manual processes simply could not.

Recent News and Developments in Saudi Arabia Condominiums and Apartments Market

January 2026: Saudi Arabia enacted a new foreign ownership law opening the residential property market to non-Saudi nationals. The policy targets 411 million square metres of idle land through a tiered White Land Tax designed to reduce speculation and accelerate housing supply across the Kingdom.

October 2025: NEOM launched its first smart residential district, featuring AI-managed energy systems and IoT-enabled apartments designed to meet high sustainability standards. The district is part of NEOM's broader plan to house millions of residents in a technology-first urban environment.

November 2024: Tilal Real Estate launched the USD 1.63 billion Heart of Khobar mixed-use development in Al Khobar, spanning 268,813 square metres and incorporating residential units, offices, hotels, and recreational facilities within a sustainable urban design framework.

October 2024: Riyadh Development Company was appointed as developer for a USD 559 million real estate investment fund covering 1.8 million square metres across the Al Ramal, Al Qadisiyah, and Al Janadriyah districts in eastern Riyadh, adding significant new residential pipeline to the capital.

March 2024: Talaat Moustafa Group and Al Muhaidib Group announced a partnership to develop Banan City in Riyadh. The project covers 10 million square metres and will deliver 27,000 residential units along with integrated green spaces, positioning the development as one of the Kingdom's largest smart community projects.

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