Over 1 Million New Homes to Be Built in Saudi Arabia by 2030

The Kingdom of Saudi Arabia plans to introduce over 1 million new homes by 2030. This development is part of the broader Vision 2030, aimed at diversifying the Kingdom's economy and improving housing accessibility. According to Knight Frank’s Saudi Giga Projects Report, a total of 1,048,000 residential units have been announced since 2016, with 4% already completed.

The government aims to increase homeownership rates from nearly 64% today to 70% by 2030. This vision has led to a 58.5% increase in announced homes over the past year, driven by both public and private sector initiatives.

In terms of value, the Saudi real estate sector has seen USD 1.3 trillion in projects since 2016, with USD 164 billion worth of contracts awarded. NEOM, one of the Kingdom's largest projects, stands out with an investment of USD 28.6 billion.

Despite these figures, rising property prices, especially in Riyadh, have posed challenges. Apartment prices in the capital have increased by 58% over the last three years, while villa values climbed by 38%. These prices are now higher than in Jeddah for the first time, reaching SAR 5,155 per square metre.

Residential transactions have also surged in 2024, with a 41% increase in sales and a 48% rise in transaction value, reaching SAR 77.6 billion. Government programs like Sakani and Wafi have played a pivotal role in boosting homeownership.

Riyadh's real estate expansion extends beyond housing, with plans to add 4.6 million square metres of new office space and 2.6 million square metres of retail by 2030. Additionally, the hospitality sector is booming, with 362,000 new hotel rooms planned and a focus on 4- and 5-star hotels to meet growing tourism demands.

With its real estate and hospitality sectors booming, Saudi Arabia's Vision 2030 aims to position the Kingdom as a key global player, especially as it prepares to host the 2030 World Expo, projected to generate USD 7.8 billion in economic activity for Riyadh alone.