Residential area

The housing and real estate sector is considered one of the key pillars for achieving social stability and economic growth, as it is directly linked to family quality of life and stability. Providing adequate housing contributes to building a vibrant society and a thriving economy, while enhancing sustainable development opportunities in the Kingdom.
 
The real estate sector in Saudi Arabia has faced challenges due to rapid population and economic growth, coupled with limited housing supply compared to rising demand, in addition to financing challenges and previously long waiting periods.
 
These challenges required regulatory and legislative interventions, along with digital transformation initiatives to improve market efficiency and expand housing options.
 

Vision 2030 has contributed to a comprehensive transformation of the sector through launching regulatory and financing initiatives and platforms, raising the homeownership rate to a record level of 66.24% in 2025. This was along with building an integrated real estate ecosystem that supports sustainability and balance between supply and demand.

 

Saudi Families Owning Homes

Year

Number of Families ('000)

Homeownership Rate (%)

2016 - Baseline

--

47.00 %

2017

--

50.00 %

2018

--

52.00 %

2019

63.4

53.00 %

2020

167.6

60.00%

2021

278.0

61.17%

2022

410.3

63.74%

2023

584.3

64.03%

2024

743.6

65.40%

2025

851.4

66.24%
 

According to the Vision 2030 report, by the end of 2025, a first decline in quarterly real estate inflation was recorded over the past four years on an annual basis, reflecting a serious move toward achieving balance in the real estate market.

 

Market Stabilization

Year

Inflation rate

2022

9.01%

2023

3.50%

2024

3.60%

2025

(0.70%)
 

Key Performance Figures for the Real Estate Secto

Category

Item

Value / Details

Contracts & Leasing

Rental contracts

3.21 mln

Brokerage

licensed brokers (FAL)

106,050
 

Brokerage contracts (2025)

470,860

Real Estate Innovation

Sandbox

+60 entrepreneurs
 

Foreign companies

7

Regulatory Sandbox

Real Estate Registry

Unified database

Projects & Communities

Riyadh

Sidra, Warfa, ROSHN Waterfront, ROSHN Front, ROSHN Stadium

Jeddah

ALAROUS Community, Marafi Destination

Makkah

Al Manar Community

Dhahran

Al Danah Community
 

Individual mortgage financing reached SAR 904 billion by the end of Q3 2025, compared to SAR 420 billion in 2020.

 

Key Real Estate Sector Indicators

Item

Start year

Value

End-2025 value

Individual Mortgage (SAR bln)

2020

420

+904*

Ready-Built Units

2018

0.38

114.32

Land ('000 contracts)

2018

49.36

+1000

Self-Build ('000 contracts)

2018

42.12

534.73

Off-Plan Sales ('000 contracts)

2018

1.10

74.02

Other Products ('000 contracts)

2018

5.75

286.96
*As of Q3 2025

 

The ministry has developed several housing and real estate solutions from 2016 to the end of 2025.

 

Development of Housing and Real Estate Solutions in Saudi Arabia

Year

Key Initiatives

2016

Housing Program, Sakani

2017

Ejar, Wafi

2018

Real Estate General Authority, Real Estate Institute

2019

Mortgage refinancing, Development Fund update

2020

Sakani platform, Unit ownership law

2021

Real estate brokerage, title registration

2022

JOOD Housing, Real Estate Strategy

2023

Expansion of Riyadh projects, Cityscape

2024

Transfer tax

2025

Non-Saudi ownership, market regulation, price monitoring, sandbox, increased homeownership

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