SPA — The 2024 Madinah real estate transactions report shows a 16% rise in activity, driven by expanding investments across the tourism, housing, and commercial sectors. According to the Madinah Chamber of Commerce, this growth reflects broader efforts to modernize the city’s real estate market and meet rising demand.
The real estate sector encompasses the development, management, and operation of tourism properties, as well as brokerage activities for land and buildings. Notably, Madinah is attracting strong investor interest in hotel developments, residential towers, and affordable housing projects aimed at enhancing accommodation for tourists, pilgrims, and residents.
Investment Trends and Sector Breakdown
Key investment activities include:
- Rehabilitating older properties near the Prophet’s Mosque
- Constructing new hotels and residential towers
- Developing affordable housing for residents
- Building modern malls to meet growing commercial demand
- Establishing business centers and office complexes
These initiatives align with national goals to increase homeownership and support the city’s tourism-driven economy.
The report, citing Ministry of Justice real estate indicators, revealed that during Q4 2024, Madinah recorded 2,586 real estate transactions, covering residential, commercial, and agricultural sectors. The total area reached 2,132,105 sqm, with a market value exceeding SAR 2.05 billion.
This marks a notable increase from Q4 2023, which saw 1,689 transactions, a total area of 3,021,642 square meters, and a total value of SAR 1.84 billion.
Q4 2024 Madinah Real Estate Market by Sector
Residential Sector:
- 2,331 transactions (+71% vs. Q4 2023)
- Total value: SAR 1.612 billion
- Total area: 1,310,834 sqm
- Average price: SAR 1,230 per sqm
Commercial Sector:
- 237 transactions
- Total value: SAR 382.4 million
- Total area: 181,008 sqm
- Average price: SAR 2,113 per sqm
- 24% price decline compared to Q4 2023
Agricultural Sector:
- 18 transactions
- Total value: SAR 55.5 million
- Total area: 640,263 sqm
- Average price: SAR 87 per sqm
- Up from 37 transactions and SAR 29.2 million value in Q4 2023
The Saudi Standard’s View: Madinah Real Estate Transactions Reflect Growing Investor Confidence
The surge in Madinah real estate transactions in 2024 underscores rising investor confidence in the city’s property market. Targeted investments in tourism properties and residential developments support Vision 2030’s goals to boost accommodation and homeownership.
While the residential sector showed strong growth, the commercial segment faced price pressures, highlighting mixed sentiment in certain areas. Nonetheless, Madinah’s strategic importance as a religious and tourism hub continues to attract both private and institutional investment.
Going forward, real estate trends in Madinah will depend on infrastructure development, regulatory reforms, and the city’s ability to strike a balance between growing demand, affordability, and sustainability.
Explore the latest Saudi real estate market developments and property trends
Stay informed on Madinah tourism projects and property sector growth
