Saudi Arabia Commercial Real Estate Market is expected to register a 12.4% CAGR through 2030F
The
Saudi Arabia commercial real estate market is rising due to Vision 2030-driven
economic diversification, mega-project investments, increased foreign direct
investment, and growing demand for premium office, retail, and logistics spaces during the forecast period 2026-2030F.
According to TechSci Research report, “Saudi Arabia Commercial Real Estate
Market - By Region, Competition Forecast & Opportunities, 2030F, Saudi
Arabia Commercial Real Estate Market was valued at USD 34.9 Billion in 2024 and
is expected to reach at USD 71.01 Billion in 2030 and project robust growth in
the forecast period with a CAGR of 12.4% through 2030. Ambitious projects like
NEOM, Qiddiya, and the Red Sea Project are transforming the real estate
landscape. NEOM, spanning 28,000 square kilometers, is envisioned as a smart
city powered by renewable energy and cutting-edge technology. Qiddiya is being
developed as a world-class entertainment hub, featuring theme parks, cultural
centers, and sports complexes. The Red Sea Project focuses on sustainable
tourism, aiming to set new standards for regenerative and eco-friendly
development. These projects are set to redefine urban living, culture, and
tourism, attracting significant investments and boosting the commercial real
estate sector.
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Jeddah is the fastest-growing region in
Saudi Arabia’s commercial real estate market due to its strategic location,
booming tourism sector, and large-scale infrastructure projects. As the
country’s primary port city and gateway to Mecca, Jeddah attracts millions of
visitors annually, driving demand for hospitality, retail, and mixed-use
developments. The government’s Vision 2030 initiative has accelerated
investment in Jeddah’s real estate sector, with projects such as the Jeddah
Central Development—a $20 billion waterfront project featuring luxury
residences, hotels, and commercial spaces—transforming the city’s skyline.
Additionally, the King Abdulaziz International Airport expansion, designed to
accommodate over 100 million passengers per year, enhances connectivity and
boosts business activities. The commercial sector is also witnessing strong
growth, with increased demand for Grade A office spaces as multinational
corporations expand their presence. The logistics and industrial segments are
flourishing, supported by Jeddah Islamic Port, one of the busiest ports in the
Middle East, which is undergoing expansions to enhance cargo handling capacity.
Retail real estate is also on the rise, with premium shopping malls,
entertainment hubs, and lifestyle centers catering to an evolving consumer
base. Moreover, Saudi Arabia’s Red Sea tourism initiative is positioning Jeddah
as a global leisure and investment destination, fueling demand for high-end
residential and commercial properties. The city’s commitment to smart urban
planning and sustainability, alongside government-backed incentives for foreign
investors, makes it a thriving hub for real estate growth. Jeddah’s combination
of tourism-driven expansion, large-scale infrastructure projects, and a rapidly
growing economy ensures that it remains the fastest-growing region in Saudi
Arabia’s commercial real estate market, attracting both local and international
investors looking to capitalize on its dynamic growth trajectory.
Based on Specialty,
the data centers segment is the fastest-growing sector
in Saudi Arabia’s commercial real estate market due to the country’s rapid
digital transformation, increasing cloud computing adoption, and strong
government-backed initiatives. With Vision 2030 emphasizing digital economy
expansion, Saudi Arabia is investing heavily in IT infrastructure, smart
cities, and artificial intelligence, driving demand for high-capacity data
centers. The rise of e-commerce, fintech, and smart technologies has fueled the
need for scalable and secure data storage solutions. Major global technology
firms, including Google, Microsoft, and Oracle, have entered the Saudi market,
establishing cloud regions and hyperscale data centers to support growing
enterprise demand. Additionally, the Saudi government has allocated over $18
billion for digital transformation projects, further accelerating the sector's
expansion. The Kingdom’s strategic location at the crossroads of Europe, Asia,
and Africa also positions it as a regional data hub, attracting investments in
large-scale colocation and edge data centers. Moreover, the increasing adoption
of 5G, IoT, and artificial intelligence has intensified demand for low-latency,
high-performance data storage facilities, prompting real estate developers to
prioritize purpose-built data centers. In response, key players like STC,
Mobily, and Al Moammar Information Systems are expanding their data
infrastructure to meet the rising demand. Sustainability and energy efficiency
are also major drivers, with Saudi Arabia focusing on green data centers
powered by renewable energy sources to align with its net-zero carbon goals.
Additionally, regulatory advancements, such as enhanced data protection laws
and cloud-first policies, are attracting foreign investors to establish
long-term operations. As businesses continue to migrate toward cloud-based
solutions, the demand for modern, secure, and efficient data center facilities
is expected to surge, making this segment the fastest-growing in Saudi Arabia’s
commercial real estate landscape, with significant potential for high-yield
investments.
Key market players in the Saudi Arabia Commercial
Real Estate market are: -
- Emaar Properties PJSC
- Nakheel PJSC
- Aldar Group
- Prologis, Inc.
- Tishman Realty & Construction LLC
- Lincoln Property Company
- Blackstone Inc.
- Realogy Holdings Corp.
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“Saudi Arabia's commercial real estate
sector presents significant opportunities driven by economic reforms,
infrastructure investments, and rising demand across various segments. The
government’s Vision 2030 initiative has opened doors for foreign investors,
easing ownership restrictions and encouraging global businesses to establish
regional headquarters in the Kingdom. The rapid expansion of mega-projects such
as NEOM, Qiddiya, and the Red Sea Project offers lucrative prospects in
hospitality, retail, and mixed-use developments. Additionally, the surge in
e-commerce is fueling demand for logistics hubs, warehousing, and last-mile
distribution centers. Riyadh’s growing status as a financial hub has created an
increasing need for premium office spaces, while rising tourism is driving
investments in luxury hotels and entertainment complexes. With strong
government backing, digital transformation, and sustainable urban planning,
Saudi Arabia’s commercial real estate market is positioned for long-term growth
and high returns Top of Form”
said Mr. Karan Chechi, Research Director of TechSci Research, a
research-based global management consulting firm.
“Saudi Arabia Commercial Real Estate Market By
Retail (Regional Malls, Community Centers, Strip Malls), By Specialty
(Self-Storage, Data Centers, Entertainment Venues), By Region, Competition
Forecast & Opportunities, 2020-2030F” has evaluated the future
growth potential of Saudi Arabia Commercial Real Estate Market and
provides statistics & information on market size, structure, and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision makers take sound investment decisions. Besides the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in Saudi Arabia Commercial Real Estate Market.
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