Saudi Arabia Residential Construction Market Size (2024 - 2029)

Saudi Arabia Residential Construction Market Analysis

The Saudi Arabia Residential Construction Market is valued at about USD 37 billion and is expected to register a CAGR of more than 6% during the forecast period. The market is driven by the infrastructure and housing projects developing in the country. Furthermore, the market is driven by the increasing home ownership in the country.

• Despite global macroeconomic conditions, Saudi Arabia's construction industry continues to lead the MENA region. In 2022, the kingdom saw the highest value of project awards, demonstrating its commitment to driving economic diversification and transformation through its Vision 2030. The pipeline value of unawarded (pre-execution) projects in Saudi Arabia is estimated to be USD 1.1 trillion, which includes projects from the study stage to the main contractor bid. Approximately 70% of projects are in the 'construction' sector, with residential, cultural, leisure, and hospitality serving as sub-sector leaders, which is the driving force behind the Vision 2030 strategy. While the country's inflation forecasts are relatively soft in comparison to global averages, Saudi Arabia, like the rest of the MENA region, relies on importing construction materials from high inflationary countries, which affects construction material prices.
• The Kingdom of Saudi Arabia is experiencing an unprecedented construction and urban mega-project boom that will reshape the Kingdom's and the region's future. The Public Investment Fund, the Royal Commissions of the major urban areas, the related Ministries, and the private sector, which is driving the majority of projects and opportunities, are all funding mega public and private sector projects. Exhibitors offering resilient, sustainable building technologies and solutions will have unprecedented access to new projects worth more than USD 2.9 trillion. Since its inception, The Housing Program has focused on setting new standards for the development of the housing sector to provide citizens with a variety of housing options. This assistance will increase the number of Saudi families who own a home.
• The residential market was resilient during the pandemic, owing to strong demand fundamentals, and has seen a positive trend in KPIs in H1 2022. Apartment and/or smaller unit demand is increasing at a faster rate, owing to affordability, an influx of expatriates, and growing market acceptance for these types of units, particularly among Saudi households. The ongoing economic recovery, combined with improving demand drivers from various sectors, is expected to have a positive impact on the capital city's overall real estate market. Combining retail with other complementary real estate components such as entertainment, hotel, office, or residential could be a good idea for increasing footfall. The market's long-term outlook is likely to be positive, backed by the government's initiatives to increase the industry's contribution to the economy.

Saudi Arabia Residential Construction Industry Segmentation

Construction on single-family or two-family homes that are utilised, are planned to be used, or are predominantly used for residential purposes is considered residential construction. A complete background analysis of the Saudi Arabia Residential Construction Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.

The Saudi Arabia Residential Construction Market is segmented By Type (Apartments & Condominiums, Landed Houses & Villas, and Other Types), By Construction Type (New Construction, and Renovation), and By Key Cities (Riyadh, Jeddah, Dammam, and the Rest of Saudi Arabia). The report offers market size and forecast values (USD billion) for all the above segments.