Saudi real estate sector playing key role in GDP growth: Minister
RIYADH: Saudi Arabia's exanding real estate sector is contributing directly to the growth of the Kingdom's gross domestic product, according to the minister of economy and planning.
Faisal Al-Ibrahim told Al-Arabiya Business that the Saudi government has created an enabling environment for the private sector, allowing it to focus on qualitative investment in real estate development.
Those remarks come amid a broader government effort to stabilize the real estate market in Riyadh. Over the weekend, Crown Prince Mohammed bin Salman announced a series of measures aimed at addressing rising land prices and rental costs, including lifting restrictions on land transactions and development in northern Riyadh.
The initiative, based on studies by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs, seeks to increase housing accessibility, regulate market dynamics, and ensure sustainable growth in the sector.
In his remarks, Al-Ibrahim also highlighted the importance of cost regulation in supporting the private sector, enhancing market competitiveness, and driving sustainable economic growth.
Regarding upcoming policies and regulations, he said: 'All legislative measures will be announced in due course, and their impact will be monitored in a structured and institutionalized manner to ensure they achieve the desired objectives.'
According to an analysis by real estate services firm JLL released at the end of March, the Saudi real estate sector is poised for further expansion, driven by Vision 2030's economic diversification goals.
The firm said that the Kingdom's non-oil sector is projected to grow by 5.8 percent in 2025, up from 4.5 percent in 2024.
The report highlighted Saudi Arabia's strong construction activity, with project awards totaling $29.5 billion in 2024. A strong real estate market is critical for the Kingdom's ambitions to position itself as a global hub for tourism and business.
The property market is projected to reach $101.62 billion by 2029, growing at an annual rate of 8 percent from 2024.
Despite global economic headwinds, JLL's country head for Saudi Arabia, Saud Al-Sulaimani, emphasized that Vision 2030's strategic diversification efforts are attracting both domestic and international capital.
Key sectors, particularly in Riyadh and Jeddah, are seeing sustained demand, with tourism and infrastructure initiatives further stimulating investment.
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