Research shows that the real estate sector in Saudi Arabia is expected to grow more than 62 times over the next four years to nearly $100 billion, providing plenty of opportunities for developers and investors. Riyadh, the Saudi capital, will be the epicenter of the country’s surging real estate market, which is expected to account for nearly 50% of the market share by 2027. The residential sector is expected to grow by 7-8%, while the commercial sector is expected to grow by 12% per year. As companies move their regional headquarters to Saudi Arabia and set up offices, office space in the Kingdom’s major cities, especially the capital Riyadh, is growing rapidly.
Jeddah and Dammam are the other two major cities in the country and real estate is expected to surge, accounting for 25% and 9% respectively by 2027. Saudi Arabia fully opened the sector to foreign investment in August this year and announced that foreigners would be able to purchase a variety of real estate, including commercial, residential, and agricultural properties. This move, once implemented, will attract foreign investment into the residential and commercial sectors, drive more growth, and could drive up property prices. Another factor in the Saudi market that attracts buyers, including international investors, is the high rental yield (estimated at more than 7%), which is comparable to the rental yield in Dubai.
