Saudi Arabia Commercial Real Estate Market Report and Forecast 2032

Saudi Arabia Commercial Real Estate Market Insights & Analysis

The Saudi Arabia Commercial Real Estate Market reached a value of nearly USD 71.4 billion in 2024. The market is assessed to grow at a CAGR of around 4.1%, during the forecast period of 2025-2032 to attain a value of around USD 91.87 billion in 2032. The term "commercial real estate" is regarded as the properties that generate revenue for enterprises, like office shopping malls, buildings, warehouses, industrial facilities, and mixed-use improvements. Ownership, leasing, or progression of these infrastructures is done to earn money via business activities, property appreciation, or rental income. Moreover, applications are found across a broad range of industries, such as medical facilities, retail stores, corporate offices, logistics hubs, hospitality venues, and special economic zones.

Also, the Saudi Arabia Commercial Real Estate Market is growing swiftly owing to government programs, great infrastructure projects, and Vision 2030's intention to diversify the economy. Along with this, international tourist e-visas have also been presented by the Saudi government as part of Vision 2030 to improve travel & raise the country’s competitiveness globally. This would have a favorable influence on the Kingdom's Commercial Real Estate Industry.

Saudi Arabia Commercial Real Estate Market FY32

• Study Period: 2020- 2032


• Base Year: 2024


• CAGR(2025-2032): 4.1%


• Market Value 2032: USD 91.87 Billion


• Major Players: Saudi Real Estate Company (Al Akaria), Kingdom Holding Company, Red Sea Global, Jeddah Economic Company, The Saudi Investment Group (SIG)., and Others 

The rising prevalence of e-commerce affects enterprises as well as they require flexible & effective facilities for distribution, retail, and warehousing to satisfy customer needs for fast delivery & enhance shopping experiences. Commercial real estate is also more sustainable & practical due to technical developments in design, construction, and building management systems, which demand both developers & buyers.

Furthermore, the economy outside of oil augmented by nearly 6.2% annually, while the oil sector grew by about 9%. The Saudi Arabia Commercial Real Estate Market is foreseen to witness elevated demand owing to the government's ongoing investment in giga-projects & the expanding entertainment sector.

Also, most commercial real estate markets observed mild conditions in 2022, although the hospitality sector experienced varied substantial advancements announcements. The country is at the top of the global hotel supply expansion list, as per STR data.

Besides, the rapidly developing industries include hospitality & retail, which are being pushed by an uptick in international brands, retail diversity, and tourism. The augmentation of business conditions is also driving the corporate need for Grade A office space, which is elevated by noteworthy projects, such as King Salman Energy Park and Riyadh's metro system.

Also, the advancement of King Abdulaziz International Airport is encouraging aggregating commercial real estate spending in primary cities, such as Riyadh, Jeddah, Makkah, and NEOM. This is in line with Saudi Arabia's ambitious objectives to welcome about 100 million tourists yearly by 2030.

Additionally, the office sector in Saudi Arabia's main regions continued to face some pressure. However, as the nation's economy improves, it is anticipated that corporate requirements would elevate in the medium to long term. This is because of a number of new projects, like the King Salman Energy Park (SPARK) in Dammam and the 176.7 km metro in Riyadh, which would further assist in stimulating the Saudi Arabia Commercial Real Estate Market expansion during 2025-32.