The complete guide
Saudi Arabia’s strong economic growth is resulting in strong performance across its property market, according to CBRE Middle East’s Q2 2025 Real Estate Market Review. Notably, this growth is being attributed to a 4.9% expansion in Saudi Arabia’s non-oil GDP.
Q2 2025, in particular, witnessed a dynamic and evolving real estate sector, propelled by a combination of regulatory changes and strategic efforts. Market dynamics were further influenced by the Real Estate Transaction Tax (RETT) and strategic realignments in the construction industry.
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Significant investment was made in Saudi Arabia's Hail region, highlighting its strategic significance. In the meantime, a number of significant mixed-use projects (including the Dar Al Hijra project in Madinah, the Pulse Wadi District, and OSUS EYE in Riyadh) showed the Kingdom's dedication to urban expansion and economic diversification.
Below, CBRE Middle East examined the Saudi property market's major sub-sectors, including residential, office, retail, hospitality, and industrial.
Residential Real Estate Surge
In Q2 2025, Saudi Arabia’s residential real estate market — particularly in Riyadh — showed significant growth and investment.
- New project launches and investment funds fueled the real estate sector’s commitment to address the Kingdom’s housing goals
- Land sales led the way; transaction volumes were substantial and driven by strong demand
- Government support and initiatives promoted developments and attracted local and international investors to Saudi