Market Trends of Saudi Arabia Real Estate Brokerage Industry
Government-led Initiatives Driving the Saudi Arabian Real Estate Brokerage Market
As part of its Saudi Vision 2030, the Saudi Arabian government is actively reshaping the nation's real estate industry through its National Transformation Program. The government's initiatives, led by the Ministry of Municipal and Rural Affairs and Housing (MoMRAH), aim to enhance citizens' quality of life, improve housing accessibility, and open up new investment opportunities.
Under MoMRAH's guidance, these initiatives range from facilitating ready-to-market units and providing financial aid to simplifying legal processes, offering self-construction options, and easing land acquisition. Collectively, these efforts are bolstering the housing industry.
Significant projects like Neom, Oxagon, Sindalah, Trojena, and The Line are set to drive the demand for 300,000 new homes by 2025. This underscores the necessity for skilled brokerage services, as highlighted by H.E. Majed bin Abdullah Al-Hogail, the Minister of Housing of Saudi Arabia. Additionally, with the National Housing Company (NHC) developing over 140,000 residential units, brokers are crucial in marketing these properties and facilitating sales.
With a target of achieving 70% homeownership by 2030 and focusing on urban revitalization, the government is actively working to maintain a dynamic real estate market. Acting as intermediaries, real estate brokers play a pivotal role in connecting buyers with suitable properties, especially in rapidly growing urban areas.
Strategic Partnerships Driving Expansion in the Saudi Arabian Real Estate Brokerage Market
In July 2024, the Trump Organization partnered with Dar Global to develop a luxury high-rise tower in Jeddah, marking its first major venture in Saudi Arabia. This project aims to cater to the luxury segment of Saudi Arabia's real estate market and international investors.
Leveraging their successful collaboration on the Trump International Oman project, both parties aim to set new standards of luxury and sophistication in key Saudi cities. Dar Global, part of Dar Al Arkan, plans to capitalize on this partnership to attract high-net-worth buyers and elevate luxury living standards in the region, thereby expanding its presence and influence in Saudi Arabia's booming real estate industry.
A luxury development by a renowned brand like the Trump Organization will attract high-net-worth individuals and international investors. Brokers will facilitate transactions, match buyers to properties, and manage negotiations.
Similarly, in May 2024, SCG International Corporation signed a Memorandum of Understanding (MOU) with Buna Al Mamlaka (BUNA) to promote sustainable construction technologies in Saudi Arabia. This partnership involves setting up showrooms for SCG's advanced building materials and supports SCG's expansion in South Asia, the Middle East, and Africa.
Brokers and developers using these advanced materials and technologies may gain a competitive edge, differentiate their offerings, and attract clients interested in sustainable and innovative real estate.
