Authored by the expert who managed and guided the team behind the Saudi Arabia Property Pack
Yes, the analysis of Riyadh's property market is included in our pack
Why is Riyadh emerging as a prime destination for property investment in 2025? Is it the city's rapid urban development, the strategic government initiatives, or the competitive pricing compared to other major cities? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Riyadh's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
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1) Riyadh's luxury developments are attracting high-net-worth individuals
Riyadh is buzzing with a rise in luxury developments that are catching the eye of potential buyers.
In 2024, the city saw a boom in high-end apartments and condos, thanks to both local and international interest. This isn't just a random spike; it's fueled by a mix of factors that make Riyadh a hot spot for luxury real estate.
Foreign investment is a big player here. Recent legal changes have made it easier for foreigners to own property in prime areas, which has opened the floodgates for global investors. This has turned Riyadh into a top destination for those looking to invest in premium real estate.
Government initiatives, especially Saudi Vision 2030, are also shaking things up. This ambitious plan is all about transforming urban living with smart cities and sustainable projects. It's no wonder high-net-worth individuals are taking notice, as these initiatives are making Riyadh a dynamic hub for real estate development.
With these changes, Riyadh is not just growing; it's evolving into a city that offers a blend of modern living and investment opportunities. The city is seeing a rise in luxury developments, appealing to high-net-worth individuals.
Sources: Mordor Intelligence, Wealth Consulting, Branded Resi
2) With Riyadh’s growing financial sector, more people are looking to buy homes
Riyadh's financial sector is booming, increasing the number of potential homebuyers.
This surge is fueled by a 3.8% growth in non-oil GDP in 2023, thanks to government spending on projects tied to Saudi Vision 2030. The city is transforming into a financial services hub, with a projected 32% increase in office space and a 24% rise in retail space by 2030. This growth is attracting a diverse workforce, including many expatriates in finance, which is driving up housing demand.
Government initiatives like the National Investment Strategy are playing a crucial role. They aim to enhance the investment climate and draw in foreign direct investment. As a result, foreign investments have soared to SR401 billion ($106.9 billion) in 2024.
Riyadh's appeal is not just about numbers. The city is becoming a magnet for professionals, especially in finance, due to its expanding opportunities. This influx is creating a vibrant community, making it an attractive place to settle down.
With more people moving in, the housing market is buzzing. The demand for homes is rising, and this is reshaping the real estate landscape. New developments are popping up, offering a range of options for potential buyers.
For those considering buying property, Riyadh offers a dynamic environment with promising growth. The city's financial sector is not just expanding; it's transforming the entire urban landscape, making it a prime location for investment.
Sources: Ministry of Finance, Arab News, Arab News, IMF
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Saudi Arabia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Riyadh’s location makes it a key logistics hub in the Middle East, driving economic growth
Riyadh's strategic spot in the Middle East makes it a key logistics hub, driving economic growth.
In 2023, Riyadh attracted SAR 33 billion in foreign direct investment, with a big chunk going into manufacturing. This shows a strong push in logistics and manufacturing, which are vital for economic growth. The city's appeal is clear as more multinational companies set up their regional headquarters here, aiming to boost their logistics operations by leveraging Riyadh's prime location.
Major projects like the expansion of King Salman International Airport and the development of King Salman Energy Park are enhancing Riyadh's connectivity. These initiatives are not just about infrastructure; they are about making Riyadh a central player in the logistics game. The airport expansion, for instance, is set to accommodate millions more passengers, making it a crucial link in global travel and trade.
Saudi Vision 2030 is a big deal, pushing for economic diversification with a focus on logistics. This vision includes setting up numerous logistics centers, many of which are in the Riyadh area. The National Transport and Logistics Strategy (NTLS) backs this up, aiming to grow the logistics sector and strengthen international trade networks.
Riyadh's growth isn't just about numbers; it's about strategic moves that make it a logistics powerhouse. The city's location and infrastructure projects are drawing in businesses looking to tap into the Middle East market. With these developments, Riyadh is not just a city; it's becoming a central hub for international trade.
Sources: Arcapita, Argaam, Moodie Davitt Report, Arab News
4) With Riyadh’s booming hospitality industry, you can easily invest in short-term rental properties
Riyadh's hospitality industry is booming, creating exciting opportunities for short-term rental investments.
In the first half of 2024, Riyadh saw a massive influx of tourists, with 8.8 million domestic and 1.3 million international visitors flocking to the city. This surge has pushed hotel occupancy rates through the roof, showing a strong demand for places to stay. With more tourists than ever, the city is buzzing with potential for property investors.
A major player in this growth is the development of Riyadh's King Salman International Airport. This airport is set to become a transportation and tourism mega-hub, making it easier for international visitors to reach the city. As the airport expands, expect even more tourists, which means more demand for short-term rentals.
Government initiatives like the Vision 2030 plan are also fueling this boom. These plans are all about boosting tourism and travel, which naturally increases the need for short-term rental accommodations. The General Authority of Civil Aviation has reported a 20.0% increase in total passenger numbers as of May 2024, further energizing the sector.
Riyadh's hospitality scene is not just about hotels; it's about creating a vibrant ecosystem for all kinds of travelers. With the city's strategic location and ongoing developments, the potential for property investments is immense. The hospitality sector is expected to grow by 7.5% over the next four years, making it a hot spot for investors looking to capitalize on this upward trend.
For those considering property investments, now is the time to dive into Riyadh's thriving market. The combination of increased tourism, government support, and infrastructure development makes it a prime location for short-term rental opportunities. Riyadh is transforming into a global destination, and being part of this growth could be a lucrative venture.
Sources: Saudi hospitality ADR and RevPAR rise in first half of 2024, Riyadh's 5 Star Hotels Occupancy Rate Hits 97% During Mid Year, Plans Underway For Riyadh's 'Game-Changing' 6-Runway Airport, Saudi hospitality revenue to grow by 7.5% in next 4 years: report
5) Riyadh’s climate boosts demand for well-designed indoor living spaces
Riyadh's climate is characterized by extremely high temperatures, especially in the summer.
In July, the city often sees temperatures soaring to around 44 °C (110 °F), making outdoor activities quite uncomfortable. This intense heat naturally encourages people to spend more time indoors, where it's cooler and more comfortable.
The demand for air conditioning in Saudi Arabia is a testament to this lifestyle shift. The air-conditioning sector generates between SAR 13-15 billion annually, with investments in AC systems rising significantly in 2022. This trend shows that people are prioritizing cooling their homes, which is essential for comfortable indoor living.
Moreover, the smart home market in Saudi Arabia is thriving, thanks to technological advancements and a growing focus on energy efficiency. Devices like smart thermostats are becoming popular as they help optimize heating and cooling systems, leading to energy savings. This highlights the need for well-designed homes that can efficiently manage indoor climates.
Riyadh's real estate market is also evolving, with a shift towards homes that support remote work and include wellness-centric features. This indicates a growing demand for superior interior design, likely driven by the need for comfortable indoor spaces.
As more people seek homes that offer both comfort and functionality, the demand for well-designed properties in Riyadh is on the rise. The city's climate, which encourages indoor living, is a key factor in this trend.
Sources: Time and Date, Argaam, Market Research, Deloitte, Sunheron
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6) Riyadh’s growing tech industry draws young professionals looking for homes
Riyadh's tech scene is booming, making it an exciting place for potential property buyers.
The city is buzzing with over 1,000 tech startups registered on Manassa Tech, focusing on cutting-edge areas like AI. This surge is fueled by hefty investments, creating a lively innovation hub. The government's Vision 2030 is a big driver, aiming to boost the tech sector's GDP contribution. They've poured billions into digital infrastructure, which not only supports tech growth but also draws tech professionals to Riyadh.
Foreign investors are taking notice, with the ICT sector receiving SR96 billion in 2023, surpassing expectations and showing strong global interest. Riyadh is becoming a tech magnet, thanks to new tech hubs and innovation centers. Events like the LEAP 2025 tech conference are key, bringing together startups and industry leaders for networking and collaboration.
Initiatives like NEOM Tech & Digital Company highlight Riyadh's commitment to future technologies. This has led to a rise in tech-related job postings, attracting young professionals eager to be part of the action. The city's proactive approach is paying off, making it a hotspot for tech activities.
For those considering buying property, this tech boom means a growing demand for housing, especially among young professionals. The influx of tech talent is reshaping the city's landscape, creating vibrant communities and opportunities. With the tech sector expanding, Riyadh is becoming a dynamic place to live and work.
Sources: Nucamp, Wired, Arab News, Nucamp
7) Riyadh's fast-growing population means more people need homes
Riyadh's population is booming, and it's driving up the demand for housing.
By 2030, the city is expected to grow from 7 million to 9.6 million residents, a 38% increase. This surge means more people are either moving to Riyadh or being born there, all needing a place to call home. A significant factor in this growth is the rising number of expatriates. By 2034, their numbers are projected to climb from 5.5 million to 6.2 million, adding to the city's vibrant mix and further fueling the housing market.
Internal migration is another key player. Many Saudis are relocating within the country, seeking better opportunities in the capital. This movement, combined with new household formations, is expected to create a demand for 305,000 additional housing units for Saudi nationals between 2024 and 2034. It's not just about numbers; it's about the lifestyle and opportunities Riyadh offers.
Riyadh is becoming a magnet for people from all over, thanks to its growing economy and ambitious development plans. The city's transformation is attracting both locals and foreigners, making it a bustling hub of activity. This influx is reshaping the housing landscape, with new developments springing up to meet the needs of a diverse population.
For potential property buyers, this means a dynamic market with plenty of opportunities. Whether you're looking for a family home or an investment property, Riyadh's real estate scene is buzzing with potential. The city's rapid growth is not just a statistic; it's a reality that's changing the way people live and work.
Sources: Arab News, Knight Frank
8) In Saudi Arabia, first-time homebuyers get incentives, boosting the property market
The Saudi government is rolling out incentives to make it easier for first-time homebuyers to step into the property market.
One standout initiative is the Sakani program, which offers free residential plots to Saudi families. This is part of a larger push to make housing more affordable, aligning with the ambitious Vision 2030 goals. Imagine getting a piece of land without the hefty price tag—it's a game-changer for many families.
In 2023, the Housing Program expanded its offerings, providing a variety of housing and financing options. This move benefited over 96,000 families eligible for housing support. As a result, homeownership rates soared, with 63.74 percent of Saudi households owning a home by the end of the year, surpassing expectations.
The Saudi Central Bank has also played a crucial role by making homeownership more accessible. They've increased the maximum loan-to-value ratio for first-time buyers and lowered interest rates. These changes have made it easier for people to secure loans, fueling a boom in real estate transactions and mortgage applications.
For those considering buying property in Saudi Arabia, these incentives and financial adjustments mean more opportunities and less financial strain. The market is buzzing with activity, and it's a promising time for potential homeowners.
Sources: Arab News, Arab News, Ministry of Municipal and Rural Affairs
We have made this infographic to give you a quick and clear snapshot of the property market in Saudi Arabia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Riyadh is attracting international companies and expats, making it a growing business hub
Riyadh is rapidly becoming a major business hub, drawing in international companies and expatriates.
In the first quarter of 2024, over 120 foreign firms moved their regional headquarters to Riyadh, a staggering 447% increase from the previous year. This influx is a clear sign of the city's growing appeal to multinational corporations. The city is buzzing with new opportunities, making it an exciting time for potential property buyers looking to invest in a thriving market.
Foreign direct investment (FDI) is also on the rise, with Riyadh seeing a 5.6% year-on-year growth in the first quarter of 2024, totaling $2.5 billion. This financial boost is essential for the city's economic expansion and attractiveness to global businesses. If you're considering buying property, this economic vitality could mean a promising return on investment.
Much of this transformation is driven by Vision 2030, a government initiative aimed at diversifying the economy beyond oil. The program offers enticing incentives, like a 30-year exemption on corporate income tax, making Riyadh a magnet for foreign companies. This strategic shift is reshaping the city's business landscape, offering a fertile ground for new ventures and investments.
Riyadh's infrastructure is also getting a major upgrade, with the King Abdullah Financial District leading the way. This area provides state-of-the-art facilities and a business-friendly environment, making it a prime location for companies. The development of metro lines and the upcoming King Salman International Airport are further enhancing the city's connectivity, making it even more attractive for businesses and investors alike.
For those eyeing property in Riyadh, these developments signal a city on the rise, with a dynamic business environment and robust infrastructure. The combination of government support, foreign investment, and modern infrastructure is creating a vibrant ecosystem for businesses and residents. It's a compelling time to consider Riyadh as a place to invest and live.
Sources: Riyadh's Business Boom: 120+ Foreign Firms Relocate in Q1 2024, Vision 2030 Annual Report 2023, Riyadh Emerges as a Regional Business Hub with a Jump in Foreign Firm Relocations
10) Riyadh’s booming retail sector makes mixed-use developments more attractive
Riyadh's retail scene is buzzing with excitement, thanks to a remarkable surge in retail sales and bustling shopping malls.
Imagine strolling through a mall where occupancy rates have soared to 90%, a clear sign of the city's vibrant shopping culture. The Saudi Fashion Commission once predicted a 48% jump in apparel and footwear sales by 2025, and it seems we're well on our way there. This growth isn't just about numbers; it's about the energy and enthusiasm of shoppers filling these spaces.
What's driving this boom? Well, it's partly the influx of international brands eager to tap into Saudi Arabia's fashion market. In 2023 and 2024, we saw a massive 962,000 square meters of new retail space being developed. Younger consumers, in particular, are on the hunt for premium footwear that combines style and comfort, fueling this expansion.
Government initiatives like Vision 2030 are also playing a big role. This plan aims to diversify the economy, and it's working wonders for retail and tourism. Events like Riyadh Fashion Week are putting the city on the global map. Plus, with improved infrastructure and public transport, getting to these shopping hubs has never been easier.
People's tastes are changing, and they're leaning towards integrated living and shopping experiences. Surveys show a growing appetite for premium products, making mixed-use developments more appealing. Projects like Diriyah Square and Boulevard City are turning Riyadh into a high-end shopping hotspot, and property values in these areas are on the rise.
Riyadh is leading the charge in transforming Saudi Arabia's retail landscape, and it's not just about shopping; it's about creating a lifestyle. The city's retail boom is making mixed-use developments more attractive than ever.
Sources: Gulf Business, Fashionating World, Eventackle Intelligence, Arab News
11) Riyadh’s smart city projects make tech-savvy properties more attractive
Riyadh is becoming a hub for tech-savvy properties thanks to its smart city initiatives.
The city kicked off a smart traffic management project, part of the King Abdullah Financial District's strategy, to improve infrastructure and operations. This means smoother commutes and less congestion, making life easier for residents and more appealing for potential buyers.
With the National Data and Artificial Intelligence Authority at the helm, Riyadh is using AI to analyze traffic data in real-time. This tech-savvy approach optimizes traffic signals, enhancing efficiency and drawing in tech enthusiasts who appreciate a city that embraces innovation.
At the LEAP23 conference, over $9 billion was announced for tech investments in Saudi Arabia, spotlighting Riyadh's potential as a tech powerhouse. This influx of funds is set to boost startups and future technologies, making the city a magnet for investors and innovators alike.
Riyadh's smart city blueprint is expanding, focusing on digital infrastructure and public safety. This initiative not only sets a standard for other Saudi cities but also makes Riyadh a model for smart city development, attracting those interested in cutting-edge urban living.
Government support has fueled digital transformation, with Saudi startups raising significant funds recently. This backing is crucial for innovation, positioning Riyadh as a leader in the tech scene and a prime location for those looking to invest in the future.
Sources: Movemnt.net, IFG.cc, Dealroom.co
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12) With major investments in public transport, properties in Riyadh are becoming more accessible
The government is pouring resources into public transport to make properties more accessible.
One standout project is the Riyadh Metro, with a hefty $22.5 billion price tag. This isn't just about trains; it's part of the King Abdulaziz Project for Riyadh Public Transport, aligning with Saudi Arabia's Vision 2030. The goal? To diversify the economy and give urban infrastructure a serious upgrade.
Picture this: the Blue Line, Red Line, Green Line, and soon, the Orange Line, weaving through the city. These lines are set to reshape how people move around Riyadh, cutting down on traffic jams and making it a breeze to reach different city spots. This means properties are suddenly a lot more accessible.
Keeping an eye on the Riyadh Metro's progress is key. Phase 1, featuring the 64 km Blue and Red Lines, had its grand opening in November 2024. The entire network is expected to be fully operational by early 2025, marking a huge leap forward. This is likely to boost public transport usage significantly.
For those considering property investments, this metro development is a game-changer. With the metro lines making commutes easier, property values in accessible areas could see a rise. It's not just about getting from A to B; it's about enhancing the overall living experience.
As the metro network expands, expect a ripple effect on the real estate market. Areas once considered remote might become hot spots, thanks to improved connectivity. This is a chance to get ahead of the curve in property investment.
Sources: Metro Rail Today, The Metro Rail Guy, Metro Rail Today
13) Riyadh’s focus on green spaces and parks improves residents’ quality of life
Riyadh is transforming into a greener city with a focus on parks and open spaces.
The Green Riyadh project, launched in 2019, is a major initiative aimed at increasing green spaces for residents. The goal is to expand the green area per person from 1.7 to 28 square meters and boost the city's overall green coverage from 1.5% to 9% by 2030. This ambitious plan is reshaping the urban landscape, making Riyadh a more livable city.
One of the standout features of this initiative is King Salman Park, which is set to become the world's largest urban park. Spanning 16.6 square kilometers, it will boast 1 million trees and a 7-kilometer circular walkway. This $9.4 billion project is not just about size; it's about enhancing the city's green footprint and biodiversity, offering residents a lush escape in the heart of the city.
Riyadh isn't stopping at new developments; it's also expanding existing parks and green spaces. In 2023, the city planted 92,000 trees and shrubs in the Qurtubah neighborhood. This is part of a $92 billion plan to prepare for Expo 2030, aiming to make the city greener and improve air quality. These efforts are about more than just aesthetics; they're about creating a healthier environment for everyone.
For those considering a move to Riyadh, these green initiatives are a game-changer. The city's commitment to enhancing its green spaces is not only improving the quality of life but also making it a more attractive place to live. With projects like King Salman Park, Riyadh is setting a new standard for urban living.
Sources: Vision 2030, AGBI, AGBI
14) Riyadh's move towards sustainability boosts demand for eco-friendly homes
Riyadh is leading a major shift towards sustainable living, especially with eco-friendly homes.
In the Middle East, Riyadh tops the list with 866 LEED projects, showing its strong commitment to green building. This is part of a larger movement in Saudi Arabia, which has 2,000 out of 5,000 green building projects in the region. The city is becoming a hub for sustainable construction, attracting those interested in eco-friendly living.
The government is a key player in this transformation. Under the guidance of Majed Al-Hogail, the Minister of Municipalities and Housing, initiatives are aligning with Saudi Vision 2030 to promote sustainable urban development. This vision is not just about building homes; it's about creating a new way of living that respects the environment.
Riyadh's dedication to sustainability is further highlighted by the growing number of green building certifications. The city is not just leading in numbers but also in quality, with numerous projects receiving prestigious LEED certifications. This commitment is evident in the saaf® program, which has been instrumental in certifying green projects across the country.
For potential property buyers, this means more options for eco-friendly homes that are not only good for the planet but also for your health and wallet. Eco-friendly homes often come with lower utility costs due to energy-efficient designs and materials, making them a smart investment.
As Riyadh continues to grow, the demand for sustainable living options is expected to rise. This trend is not just a passing phase; it's a fundamental shift in how the city is planning its future. Investing in Riyadh now means being part of a forward-thinking community that values sustainability and innovation.
Sources: Arab News, Zawya, TV BRICS, Global ABC
We made this infographic to show you how property prices in Saudi Arabia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Riyadh is hosting more international events, boosting its global profile and property demand
Riyadh is becoming a hotspot for international events, boosting its global reputation and drawing interest in its property market.
In 2023, the city hosted major events like the Future Investment Initiative and the World Combat Games, attracting a lot of international attention. This trend is set to continue with the Saudi Arabia Tech Summit in October 2024 and Leap 2024 in February 2025, cementing Riyadh's status as a global business hub.
During these events, hotel occupancy rates in Riyadh soared, hitting 97% during the mid-year school break in 2024. This surge was largely due to the influx of international visitors attending these high-profile gatherings.
In October 2023, hotel occupancy rates were at 77.5%, with a noticeable increase in average daily rates and revenue per available room, showcasing a booming hospitality sector.
The government has been instrumental in promoting Riyadh as a global business hub. They've streamlined the licensing process for hospitality facilities and launched the Events Investment Fund in 2023, aiming to enhance services for visitors.
These efforts are positioning Riyadh as a powerhouse of culture, entertainment, sports, and tourism, making it an attractive destination for property investment.
Sources: Zawya, Hotel Management Network, Setup in Saudi
16) Riyadh’s growing healthcare infrastructure makes it an attractive place for retirees
Riyadh is becoming a top choice for retirees thanks to its expanding healthcare infrastructure.
In line with Vision 2030, the Saudi Ministry of Health has been pouring resources into healthcare, leading to new hospitals and clinics popping up all over the city. This means better access to healthcare, which is a big deal for retirees who want to ensure they have top-notch medical services nearby.
From 2018 to 2022, there was an 18% increase in the healthcare workforce across Saudi Arabia, with a significant boost in qualified nursing staff. This growth means retirees in Riyadh can count on having well-trained medical professionals at their service, a crucial factor when choosing where to settle down.
Riyadh is also embracing the future with advanced medical technologies like telemedicine and surgical robotics. These innovations not only enhance the quality of care but also make healthcare more efficient, appealing to retirees who appreciate cutting-edge medical solutions.
The city is expanding its specialized services for the elderly, focusing on health risk prevention and promoting healthier lifestyles. This focus contributes to improved life expectancy, making Riyadh even more attractive for those in their golden years.
Sources: Saudi Healthcare Consulting, Zawya, Saudi Healthcare Consulting
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.