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Saudi Arabia Commercial Real Estate - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

Publisher Mordor Intelligence Inc
Published Jun 13, 2025
Length 150 Pages
SKU # MOI20474340

Description

Saudi Arabia Commercial Real Estate Market Analysis

The Saudi Arabia commercial real estate market size stands at USD 132.41 billion in 2025 and is forecast to reach USD 141.16 billion by 2030, rising at a 6.61% CAGR. Ongoing Vision 2030 initiatives, a USD 1.1 trillion project pipeline, and the Public Investment Fund’s (PIF) pivot toward domestic allocations are underpinning steady demand across office, retail, hospitality, and industrial assets. Growing institutional appetite for income-producing properties, liberalized foreign-ownership rules in Makkah and Madinah, and the registration of more than 500 foreign regional headquarters since 2021 are keeping prime offices well demand. Logistics platforms enjoy additional tailwinds from surging e-commerce volumes, while religious tourism is accelerating hotel absorption in Makkah and Madinah. Near-term headwinds include hybrid-work adoption, rising construction costs, and climate-risk mitigation expenses, yet these factors are outweighed by land-price appreciation near giga-projects and premium rents commanded by certified green buildings.

Saudi Arabia Commercial Real Estate Market Trends and Insights

Surge in Institutional Capital Allocation to Core Office Assets

PIF-backed platforms and multinational headquarters mandates are channeling large ticket investments into Grade-A towers, especially in the King Abdullah Financial District, where the 385-meter PIF Tower incorporates photovoltaic façades that lower energy intensity and command rent premiums. A USD 2 billion Brookfield-PIF venture earmarks at least half its capital for domestic offices, tightening vacancy in central Riyadh. Higher transparency following REIT rule enhancements is broadening exit options for global investors, while Shariah-compliant structures attract regional capital. As a result, the Saudi Arabia commercial real estate market registers deeper liquidity in the core office niche.

Accelerated Demand for Prime Industrial & Logistics Space Driven by E-Commerce

The Integrated Logistics Bonded Zone offers 50-year tax holidays and 100% foreign ownership, enticing firms such as DB Schenker and Ceva to expand regional distribution hubs. Strong port throughput at King Abdullah Economic City and USD 4.5 billion slated for maritime upgrades are shortening delivery lead times and boosting take-up of modern warehouses. As online retail penetration climbs, developers are converting outdated factories into temperature-controlled fulfillment centers, reinforcing the Saudi Arabia commercial real estate market as a GCC logistics leader.

Persistent Work-from-Home Adoption Softening CBD Office Net Absorption

Global leasing volumes remain 12% below pre-pandemic peaks, and lower-grade Saudi buildings face rising vacancy even as trophy assets stay full. Flexible-workspace operators are capturing tenants seeking short tenures, pressuring owners to overhaul legacy lease structures. Although the regional-headquarters scheme mandates physical presence, several firms minimize footprints via satellite hot-desk models, tempering immediate demand growth in the Saudi Arabia commercial real estate market.

Other drivers and restraints analyzed in the detailed report include:

  1. Government-Backed Infrastructure Pipeline Lifting Commercial Land Values
  2. Re-Rating of ESG-Compliant Green Buildings Unlocking Premium Rents
  3. Elevated Construction Costs & Labor Shortages Delaying Project Delivery

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Logistics facilities are the fastest-growing component of the Saudi Arabia commercial real estate market, recording a 7.34% CAGR through 2030 as e-commerce volumes surge and manufacturers seek proximity to export hubs. Offices still hold the largest 31% slice of 2024 revenue, but sustained absorption in build-to-spec warehouses is enlarging the Saudi Arabia commercial real estate market size for industrial assets. Developers capitalize on 50-year free-zone incentives to roll out multilevel fulfillment centers near Riyadh and Dammam ports, raising yields 120 basis points above core offices.

The Saudi Arabia commercial real estate market also benefits from 320,000 hotel keys under development, reflecting tourism-led diversification. Retail footprints evolve toward experiential formats inside mixed-use malls financed by SAR 5.25 billion (USD 1.39 billion) sustainability-linked loans. Data-center shells round out the “others” category, supported by USD 10 billion in hyperscale spending. Together, these shifts balance the portfolio away from historic office concentration and enlarge the Saudi Arabia commercial real estate market share for non-office segments.

The Saudi Arabia Commercial Real Estate Market is Segmented by Property Type (Office, Retail, Logistics, and More), by Business Model (Sales and Rental), by End User (Individuals / Households, Corporates and SMEs and More), and by Region (Riyadh, Jeddah, Makkah and Rest of Saudi Arabia). The Market Sizes and Forecasts are Provided in Terms of Value (USD).

List of Companies Covered in this Report:

  1. Al Saedan Real Estate Co.
  2. Jabal Omar Development Co.
  3. Dar Al Arkan Real Estate Development
  4. Kingdom Holding Company
  5. SEDCO Development
  6. Abdul Latif Jameel Real Estate
  7. Saudi Real Estate Co. (Al-Akaria)
  8. Emaar The Economic City
  9. Umm Al Qura Development
  10. Jeddah Economic Co.
  11. Alinma Investment Real Estate
  12. ROSHN (PIF)
  13. Misk City Development
  14. Red Sea Global
  15. Qiddiya Investment Co.
  16. Cushman and Wakefield KSA
  17. CBRE Saudi Arabia
  18. JLL Riyadh
  19. Knight Frank Saudi
  20. Colliers Saudi Arabia

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Please note: The report will take approximately 2 business days to prepare and deliver.

Table of Contents

150 Pages
1 Introduction
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Commercial Real-Estate Buying Trends – Socio-economic and Demographic Insights
4.3 Rental Yield Analysis
4.4 Capital-Market Penetration and REIT Presence
4.5 Regulatory Outlook
4.6 Technological Outlook
4.7 Insights into Real-Estate Tech and Start-ups Active in the Segment
4.8 Insights into Existing and Upcoming Projects
4.9 Market Drivers
4.9.1 Surge in Institutional Capital Allocation to Core Office Assets
4.9.2 Accelerated Demand for Prime Industrial and Logistics Space Driven by E-Commerce
4.9.3 Government-backed Infrastructure Pipeline Lifting Commercial Land Values
4.9.4 Re-rating of ESG-Compliant Green Buildings Unlocking Premium Rents
4.9.5 Rebound in International Tourism Revitalising CBD Hotel RevPAR
4.9.6 Data-Localisation Mandates Fueling Edge Data-Centre Development
4.10 Market Restraints
4.10.1 Persistent Work-from-Home Adoption Softening CBD Office Net Absorption
4.10.2 Elevated Construction Costs and Labour Shortages Delaying Project Delivery
4.10.3 Monetary Tightening and Rising Cap Rates Compressing Transactions
4.10.4 Heightened Climate-Risk Exposure Raising Insurance Premiums for Coastal Assets
4.11 Value / Supply-Chain Analysis
4.11.1 Overview
4.11.2 Real-Estate Developers and Contractors – Key Quantitative and Qualitative Insights
4.11.3 Real-Estate Brokers and Agents – Key Quantitative and Qualitative Insights
4.11.4 Property-Management Companies – Key Quantitative and Qualitative Insights
4.11.5 Insights on Valuation Advisory and Other Real-Estate Services
4.11.6 State of the Building-Materials Industry and Partnerships with Key Developers
4.11.7 Insights on Key Strategic Real-Estate Investors / Buyers in the Market
4.12 Porter’s Five Forces
4.12.1 Bargaining Power of Suppliers
4.12.2 Bargaining Power of Buyers
4.12.3 Threat of New Entrants
4.12.4 Threat of Substitutes
4.12.5 Intensity of Competitive Rivalry
5 Market Size and Growth Forecasts (Value)
5.1 By Property Type
5.1.1 Offices
5.1.2 Retail
5.1.3 Logistics
5.1.4 Others (Industrial, Hospitality, etc.)
5.2 By Business Model
5.2.1 Sales
5.2.2 Rental
5.3 By End-user
5.3.1 Individuals / Households
5.3.2 Corporates and SMEs
5.3.3 Others
5.4 By Region
5.4.1 Riyadh
5.4.2 Jeddah
5.4.3 Makkah
5.4.4 Rest of Saudi Arabia
6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles {(includes Global-level Overview, Market-level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)}
6.4.1 Al Saedan Real Estate Co.
6.4.2 Jabal Omar Development Co.
6.4.3 Dar Al Arkan Real Estate Development
6.4.4 Kingdom Holding Company
6.4.5 SEDCO Development
6.4.6 Abdul Latif Jameel Real Estate
6.4.7 Saudi Real Estate Co. (Al-Akaria)
6.4.8 Emaar The Economic City
6.4.9 Umm Al Qura Development
6.4.10 Jeddah Economic Co.
6.4.11 Alinma Investment Real Estate
6.4.12 ROSHN (PIF)
6.4.13 Misk City Development
6.4.14 Red Sea Global
6.4.15 Qiddiya Investment Co.
6.4.16 Cushman and Wakefield KSA
6.4.17 CBRE Saudi Arabia
6.4.18 JLL Riyadh
6.4.19 Knight Frank Saudi
6.4.20 Colliers Saudi Arabia
7 Market Opportunities and Future Outlook

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