Saudi Housing Demand Surges as Riyadh Leads in Price Growth
Riyadh, Saudi Arabia — Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail confirmed that Riyadh now requires between 120,000 and 130,000 new housing units each year to meet demand. The capital has posted the highest real estate price increases among Saudi cities.
To address this, new housing policies have been introduced to diversify supply and improve affordability. Al-Hogail noted the presence of over 1,400 local developers across varying segments of the market. The ministry is also working to attract global developers to introduce innovative community designs and broaden housing choices.
Saudi Housing Market Reaches 65% Ownership.
Speaking during a government communication event, the minister revealed that Saudi homeownership surpassed 65% in 2024—beating the Vision 2030 mid-term benchmark. The national target remains 70% by 2030, part of a broader strategy to enhance living standards through real estate accessibility.
At the recent “Capitals London” forum, Al-Hogail reaffirmed Saudi Arabia’s goal of becoming a global real estate investment hub. He emphasized the role of the Kingdom’s youth-dominated population in sustaining long-term housing demand.
Market Trends and Transactions Show Active Sector
Data from the Real Estate Exchange shows that Riyadh’s average property price declined to SAR 727 per square meter last week. Nationally, the average rose to SAR 403 per square meter, up from SAR 254 the week prior.
Across the country, 4,782 transactions took place over 21.3 million square meters, with total values reaching SAR 8.6 billion. These figures reflect continued momentum in the Saudi housing sector despite regional price variations.
The Saudi Standard’s View: Growth with Depth, Not Just Scale
Riyadh’s housing demand highlights more than demographic pressure—it reflects how urban expansion is now being matched with policy innovation. The push for diversification, alongside the entry of global developers, signals a shift from volume-driven development to community-centric urbanism.
Achieving a 65% homeownership rate ahead of schedule reflects not only government coordination but also public uptake of mortgage and financing programs. However, price disparities between Riyadh and other regions suggest that sustained affordability must remain a policy priority.
The continued rise in national transaction values points to resilient market fundamentals. As Vision 2030 progresses, Saudi housing policy must strike a balance between supply momentum and quality, accessibility, and integration—ensuring that housing remains an economic engine, not a barrier.
