JLL sees structural shift in Riyadh real estate

Riyadh’s real estate market is undergoing a structural transformation, driven by strategic shifts, the accelerated rollout of Saudi Vision 2030 programs, and a broadening range of investment opportunities across multiple sectors, global property consultancy JLL said.

JLL added that Saudi Arabia’s construction sector continues to demonstrate resilience despite challenges related to skilled labor availability, material costs, and supply chain pressures, supported by the adoption of building information modeling (BIM) to enhance efficiency.

The value of the construction sector reached approximately $100 billion in 2025, with annual growth expected to average 5.4% through 2029. The firm noted that annual tender price inflation is estimated to range between +2% and -2%, highlighting proactive cost management as a key factor in maintaining performance control.

The company stated that the market continues to maintain a positive outlook, supported by major events such as Expo 2030, the 2034 FIFA World Cup, and King Salman International Airport (KSIA), in addition to legislative reforms and Public Investment Fund (PIF) partnerships with the private sector, all of which create strong investment attraction drivers.

Country Head and Head of Capital Markets at JLL Saudi Arabia, Saud Alsulaimani, stated that Riyadh is leading efforts to achieve Saudi Vision 2030 by offering unprecedented opportunities for investors and developers, amid the government’s ongoing work to renew and develop national priorities to ensure strategic alignment among projects and strengthen cooperation with the private sector.

He added that regulatory reforms, such as the idle land fees and the freeze on rent increases, aim to reinforce market stability, which will ultimately drive greater focus on developing high-quality assets. This evolving landscape, alongside shifts in construction cost dynamics in certain sectors, is contributing to the reshaping of the market’s overall profile.