CBRE Middle East released its Q2 2025 Saudi Arabia Real Estate Market Review, highlighting strong growth across key sectors.
Saudi Arabia’s robust economic growth, driven by a 4.9% expansion in non-oil GDP, is fueling strong performance across the real estate market. Real GDP in Q1 2025 expanded by a robust 3.4%, though the full-year forecast has been adjusted to approximately 3.5% due to a more conservative outlook for the oil sector. The Kingdom remains committed to its Vision 2030 initiatives and fostering sustainable economic growth.
The second quarter of 2025 witnessed a dynamic and evolving real estate landscape in Saudi Arabia, driven by a combination of policy adjustments and strategic initiatives. The implementation of the Real Estate Transaction Tax (RETT) and strategic realignments within the construction sector shaped the market dynamics.
Looking at the residential real estate market in Saudi Arabia, significant growth and investment were witnessed in Q2 2025, particularly in Riyadh. Driven by strong demand, transaction volumes were substantial, with land sales leading the way.
Government support and initiatives are actively promoting development and attracting both local and international investors. New project launches, such as Azure’s Lamara project and ROSHN Group’s ALDANAH community, alongside new investment funds, are fueling the sector’s expansion and commitment to addressing the Kingdom’s housing goals.
“This groundbreaking regulation marks a pivotal moment for Saudi Arabia’s real estate market. By welcoming foreign investment, we anticipate a transformative shift, driving substantial growth in inbound capital over the next five years. This will not only support the ambitious FDI targets but also stimulate private sector development, further diversify the non-oil economy, and generate wealth for landowners. Furthermore, it will foster long-term population growth and economic stability by enabling foreign residents to participate in homeownership, a significant social milestone”.
Matthew Green, Head of Research MENA, CBRE Middle East
