Saudi Arabia’s residential property sector is set for substantial growth in 2025, with private buyers expected to invest SR4.58 billion ($1.22 billion) into the market, according to Knight Frank’s latest Saudi Report 2025, conducted in collaboration with YouGov.
Strong Demand for Mega-Development Projects
The study, which surveyed 1,037 households—including 100 expatriates—highlights a strong interest in the Kingdom’s giga-projects. A significant portion of private capital, SR2.75 billion, is poised for investment in these transformative developments. Saudi nationals account for SR2.62 billion of this sum, while expatriates contribute SR133.7 million.
NEOM continues to be the most sought-after location for high-net-worth buyers, with 41% of respondents earning over SR80,000 per month indicating a willingness to spend more than SR20 million on homes within the mega-city. This reflects the growing demand for premium real estate within Vision 2030’s flagship developments.
Shifting Preferences in Saudi Arabia’s Housing Market
Despite NEOM’s continued appeal, its popularity has declined from 84% in 2023 to 17% in 2025. Experts attribute this shift to the emergence of new giga-projects, affordability concerns, and the limited availability of ready-to-move-in homes.
Knight Frank’s research also indicates varying preferences based on income levels. While mid-income earners (SR10,000–SR50,000 per month) show a stronger interest in NEOM, higher-income groups (SR50,000 and above) favor Jeddah Central, with 14% selecting it as their preferred location.
Expatriates earning more than SR30,000 per month also show a preference for NEOM. However, 20% of surveyed expats expressed no interest in purchasing property in any of the giga-projects. Analysts suggest that this hesitation stems from a lack of clarity on foreign ownership laws, financing challenges, and uncertainty about available residential options.
NEOM and ROSHN Lead Saudi Arabia’s Housing Boom
As of early 2025, NEOM has awarded construction contracts worth $28.7 billion, including $100 million for Magna and $10.5 billion for The Line, further cementing its position as a key driver of the Kingdom’s economic diversification efforts.
Meanwhile, ROSHN, Saudi Arabia’s leading residential developer, is gaining significant traction among homebuyers. Its SEDRA development in Riyadh is currently the most sought-after project, with 39% of respondents selecting it as their top choice. Other popular ROSHN developments include Warefa in Riyadh and Marafy in Jeddah, reinforcing the company’s growing influence in shaping the Kingdom’s urban landscape.
According to Knight Frank, ROSHN’s integrated community-focused approach—blending modern living with traditional Saudi heritage—has been instrumental in its widespread appeal. The developer’s emphasis on affordable housing and essential amenities aligns with the increasing demand for sustainable, high-quality residential spaces.
Future Outlook
As Saudi Arabia continues its ambitious Vision 2030 transformation, the residential real estate sector remains a key pillar of economic growth. With substantial private investment flowing into the market and mega-developments taking shape, the Kingdom is set to redefine its urban living landscape, attracting both local and international buyers.
For investors and homebuyers, Saudi Arabia’s giga-projects present a unique opportunity to be part of one of the world’s most dynamic real estate markets. As regulatory frameworks evolve and more residential options become available, demand is expected to rise, further driving growth in the sector.
