A new report from JLL has revealed the outlook for the Saudi real estate market in light of Saudi Arabia’s Vision 2030, which focuses on continuous development and government initiatives such as the Sakani Program and the Real Estate Development Fund aimed at increasing citizens’ home ownership rates, Invest-Gate reports.

Tourism has also been on the rise in the country, with the number of international tourists arriving for leisure and tourism increasing by an astonishing 656% in the first seven months of 2024. The total number of international visitors reached 17.5 million, up 10% compared to last year, as Saudi Arabia works to simplify tourist visa procedures, diversify its entertainment offerings, and host major sporting events.

The report indicated that the capital, Riyadh, recorded the highest performance levels among cities in the Kingdom, with average daily prices increasing by about 19%, while revenues from available rooms rose by 17.1%, despite a slight decrease in occupancy rates.

In Jeddah, occupancy rates increased by 1.4%, even though revenues from available rooms decreased by 10.3%, following a decline in average daily prices of 12.1%.

The residential market in Riyadh and Jeddah experienced strong growth during the third quarter of the year, driven by rising demand and a shift in buyer preferences. Total supply in Riyadh increased to 1.46 million units, following the addition of approximately 4,000 units in the third quarter of 2024, while 8,000 units were delivered in Jeddah, bringing the total supply of residential units in the market to around 899,000 units.

Apartment sales led the market, recording the highest price increases of 17% in Riyadh and 6% in Jeddah, with apartments accounting for 83% of transactions in Jeddah between October 2023 and 2024, according to the Real Estate General Authority.