Saudi Arabia Commercial Real Estate Market Overview
Market Size in 2024: USD 67.5 Billion
Market Size in 2033: USD 90.9 Billion
Market Growth Rate 2025-2033: 3.35%
According to IMARC Group’s latest research publication, “Saudi Arabia Commercial Real Estate Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033“, The Saudi Arabia commercial real estate market size reached USD 67.5 Billion in 2024. Looking forward, the market is expected to reach USD 90.9 Billion by 2033, exhibiting a growth rate (CAGR) of 3.35% during 2025-2033.
How AI is Reshaping the Future of Saudi Arabia Commercial Real Estate Market
● Smart Building Management and Operations: AI-powered IoT systems are transforming commercial property operations through intelligent energy management, predictive maintenance, and automated climate control, reducing operational costs by 25-30% while enhancing tenant satisfaction and building efficiency across Saudi Arabia’s smart city developments.
● Advanced Property Valuation and Investment Analytics: Machine learning algorithms are revolutionizing commercial real estate investment decisions through automated property valuation models, market trend analysis, and risk assessment tools, enabling more accurate pricing and strategic investment planning for developers and institutional investors.
● Intelligent Space Optimization: AI-driven space utilization analytics are helping commercial property owners optimize floor plans, tenant mix, and lease structures by analyzing foot traffic patterns, occupancy rates, and tenant behavior data, maximizing rental income and improving space efficiency in mixed-use developments.
● Automated Property Management and Tenant Services: Artificial intelligence is streamlining property management operations through chatbots for tenant services, automated maintenance scheduling, and predictive analytics for tenant retention, reducing operational overhead while improving service quality in office buildings, retail centers, and logistics facilities.
● Enhanced Due Diligence and Market Intelligence: AI-powered data analytics platforms are providing comprehensive market intelligence, demographic analysis, and location-based insights that support strategic decision-making for commercial real estate development projects, particularly in Saudi Arabia’s mega-projects like NEOM and Qiddiya.
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Saudi Arabia Commercial Real Estate Market Trends & Drivers:
Saudi Arabia’s commercial real estate market is experiencing steady growth driven by the Kingdom’s Vision 2030 economic diversification initiatives, with the non-oil sector projected to increase by 5.8% in 2025, rising from 4.5% in 2024. The government’s ambitious mega-projects including NEOM, The Red Sea Project, Qiddiya, and King Abdullah Financial District (KAFD) are creating unprecedented demand for high-quality commercial spaces, with these developments incorporating cutting-edge technologies, green features, and digital infrastructure to attract international businesses and tourists.
The expanding tourism and hospitality sector is significantly boosting demand for commercial real estate, with the Kingdom investing heavily in hotels, resorts, shopping centers, and entertainment facilities to welcome millions of visitors annually. Religious tourism to Mecca and Medina continues to drive infrastructure development, while new e-visa programs and international entertainment events are attracting foreign visitors, creating sustained demand for hospitality and retail commercial spaces across major cities.
Urbanization and population growth in cities like Riyadh, Jeddah, and Dammam are fueling demand for mixed-use developments that integrate office spaces, retail centers, entertainment facilities, and co-working environments. The rapid expansion of e-commerce, projected to reach USD 708.7 billion by 2033 in Saudi Arabia, is driving robust demand for logistics facilities, warehouses, and fulfillment centers, while regulatory reforms including Real Estate Investment Trusts (REITs) and streamlined permitting processes are attracting both domestic and international investors to the commercial property sector.
Saudi Arabia Commercial Real Estate Industry Segmentation:
The report has segmented the market into the following categories:
Type Insights:
● Offices
● Retail
● Industrial
● Logistics
● Multi-family
● Hospitality
Breakup by Region:
● Northern and Central Region
● Western Region
● Eastern Region
● Southern Region
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Recent News and Developments in Saudi Arabia Commercial Real Estate Market
● April 2025: The 2nd Roads, Bridges & Tunnels KSA 2025 Conference is scheduled from April 30 to May 1, 2025 in Jeddah, serving as a critical forum for industry leaders to collaborate on infrastructure developments that enhance commercial real estate connectivity and land values.
● March 2025: Real estate transaction volumes grew by 38% in the first half of 2024 compared to the previous year, with steady price increases in major cities including Riyadh and Jeddah, demonstrating robust market confidence and investment appetite in the commercial sector.
● February 2025: NEOM unveiled Utamo, a new immersive destination for art and entertainment along the Gulf of Aqaba coastline, representing the latest addition to Saudi Arabia’s mega-project portfolio that is driving commercial real estate development in the northwest region.
Competitive Landscape:
The competitive landscape of the industry has also been examined along with the profiles of the key players.
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