The real estate market in Saudi Arabia is undergoing a significant transformation driven by regulatory reforms and mega projects exceeding $440 billion in value, according to a report by CBRE.
The NEOM project stands out as one of the key pillars of development, accounting for approximately 47% of the long-term project pipeline valued at $1.55 trillion, alongside major developments such as Expo 2030 and Qiddiya.
This transformation is based on three main steps: allowing foreign property ownership starting in 2026, imposing a tax on unused white land, and freezing rents in Riyadh for five years to help stabilize the market.
The residential sector is also witnessing increased supply, with plans to deliver thousands of new housing units. Meanwhile, the office sector faces a shortage of space, with occupancy rates reaching 98%, driven by the regional headquarters attraction program. The number of global companies is expected to reach 700 by 2025.
Overall, these developments reflect a strategic direction aimed at enhancing market attractiveness and attracting foreign direct investment estimated to reach $100 billion annually by 2030.
