Katch Up on All the Latest Trends Shaping the Future of Real Estate in Saudi Arabia

7th January, 2026 | Communication, Marketing

by - Beth Laverty

Join us as we explore all the key factors driving the growth of the Kingdom’s real estate market, including attractive new foreign ownership laws, demand for modern commercial spaces, and a growing population

 

2026 is officially upon us, and the next 12 months are already shaping up to be some of the nation’s most successful yet in terms of real estate. After a standout 2025, the Kingdom’s Vision 2030 continues to fuel growth and demand across all market sectors, as Saudi Arabia sets its sights on further economic diversification. While major developments for the FIFA World Cup 2034 and giga-projects such as NEOM and the Red Sea create new urban hubs and attract international investors, there is also a rising demand for residential properties in key cities like Riyadh, Madinah, and Makkah.

 

In today’s blog, we touch on all the major trends that will transform real estate in Saudi Arabia in 2026:

 

A New Era for Investors

The Saudi government continues to be one of the local real estate market’s loudest supporters, with aims to curate a more investor-friendly and community-focused landscape. Recent initiatives include the increase of the White Land Tax to as much as 10% of a plot’s value. By doing so, the government hopes to encourage landowners to sell or build, with more than 5,500 unused plots already identified under the scheme.

 

One of the biggest milestones of 2026 will see the introduction of legislation allowing foreign residents and investors to buy real estate within the Kingdom. Non-Saudis will now be able to own their own homes, apartments, and commercial properties in designated investment areas in large cities such as Riyadh and Jeddah.

 

Additionally, new measures will make it easier for first-time buyers to enter the market as the central bank reduces down payments from 30% to just 5%. This is just one of many initiatives launched under Vision 2030, as the Kingdom works toward raising homeownership rates to 70% by 2030.

 

Chestertons is also stepping up to help investors and Saudi buyers make the most of these new opportunities. Through the launch of Chestertons Property Services under Chestertons Holding KSA, the firm brings over 200 years of international real estate expertise to the Kingdom, backed by a fully Saudi-based team. The new platform offers tailored sales, leasing, and management solutions across residential, commercial, and off-plan developments, giving clients the insight and support they need to navigate the Kingdom’s thriving market.

The Future of Living

It’s really no surprise that residential property continues to lead the pack in Saudi Arabia’s real estate scene, with the population now reaching 36.9 million and counting. As more people look to put down roots, both transaction volumes and values are on the rise.

 

In Jeddah, residents continue to favour gated, master-planned communities. These lifestyle-focused neighbourhoods bring together residential, retail, educational, and healthcare facilities in one setting, making them an ideal choice for families. A standout example is the upcoming ALAROUS by ROSHN Group, located just minutes from the Red Sea coast. Designed around a new way of living, the community places schools, mosques, shops, waterside restaurants, and parks all within walking distance of each luxury home.

Growing Demand in the Holy Cities

The holy cities are also buzzing with activity as new projects reshape their skylines and lifestyles. Madinah saw a 38% rise in residential transactions last year, with total value jumping 49% to SAR 3.4 billion. In Makkah, there were more homes sold overall, but the total amount spent on those purchases fell by 33%, pointing to a growing preference for smaller, more affordable properties.

 

Both cities are seeing rapid expansion to meet the needs of residents, pilgrims, and investors. In Makkah, the landmark Masar Destination is creating a network of mixed-use spaces that blend living, leisure, and culture near the Haram. Meanwhile, over in Madinah, the ambitious Rua Al Madinah project is introducing new hotels, cultural attractions, and improved transport links, bringing fresh energy to two of the Kingdom’s most sacred destinations.

Commercial Real Estate

Vision 2030 continues to drive new opportunities across tourism, finance, and tech, creating a vibrant hub for global brands and homegrown start-ups alike. As a result, Saudi Arabia’s commercial property scene is evolving fast to meet the growing demand for office spaces, retail hubs, and industrial zones. Valued at around USD 34.9 billion in 2024, the commercial real estate market is expected to double by 2030.

 

As the Kingdom’s e-commerce market expands, modern logistics facilities are also in high demand. Companies are racing to secure storage and distribution centres to keep up with rising online sales. With competitive yields averaging between 6.75% and 8.75%, Saudi Arabia is quickly becoming one of the most attractive commercial investment destinations in the region.

 

The opportunities for both local buyers and international investors have never looked brighter, as Saudi Arabia’s real estate market continues to flourish. Backed by major reforms, ambitious projects, and growing confidence in the market, 2026 is set to be a defining year for the Kingdom.

 

For more related updates and to Katch us covering similar topics, watch this space!

 

Katch our game-changing PR and Communications, Social Media, Branding and Design, Brand Consultancy, ESG, and Global Communications services to help your brand make noise. Get in touch with our 360-Marketing Consultancy in Dubai, Qatar, Saudi Arabia, and London, and let’s get the conversation started!