Real estate developers in Saudi Arabia are poised for significant growth, driven by a property shortage and strong government backing. S&P Global Ratings predicts that continued robust demand will boost developers’ revenues and profits in 2024-2025. The sector’s contribution to the Kingdom’s GDP is expected to rise from 6 percent to 10 percent by 2030.
Saudi Arabia’s expanding population and the government’s Vision 2030 program, which promotes economic diversification, are key drivers of growth. Significant investments in infrastructure and initiatives to increase homeownership, particularly among Saudi nationals, are further accelerating the real estate market. The government aims to raise the homeownership rate from 63.74 percent in 2023 to 70 percent by 2030.
S&P’s latest report highlights both the opportunities and challenges facing developers, as they navigate evolving market conditions and capitalize on the demand for new housing and urban development projects across the Kingdom. Investments in new cities and residential developments are key components of the sector’s upward trajectory.
