The total value of Saudi Arabia’s real estate development plan has reached $1.3 trillion in 2024, highlighting the Kingdom’s focus on building the infrastructure required to realise its vision of creating a diversified economy and a welcoming environment for tourists and foreign investors.
The amount invested this year in real estate giga projects has increased by 4% from 2023 according to the latest Saudi Arabia Giga Project report, released by Knight Frank. The real estate consultancy group tracks the volume of projects unveiled by the Kingdom since the launch of the National Transformation Plan eight years ago.
This growth was achieved despite a slowdown in commissioned projects, leading to a $85 billion drop in value. In 2024, Saudi Arabia awarded $164 billion worth of related contracts. down from $250 billion in 2023, Knight Frank found. The reasons for the decrease have not been revealed.
The rise of Riyadh
As the Kingdom’s capital, Riyadh is at the centre of Saudi Arabia’s economic transformation strategy.
“In 2024, Saudi Arabia awarded $164 billion worth of related contracts. down from $250 billion in 2023.”
The city has been witnessing a remarkable increase in its population, driven by the arrival of Saudi nationals and foreign workers searching for job opportunities. This situation has put pressure on the city’s housing stock, Knight Frank analysts found, leading to a 50% increase in house prices over the last four years.
As a result of this rise in demand, a total of $314 billion in real estate, infrastructure and transportation projects in Riyadh have been announced since 2016, with $60 billion in construction contracts awarded to date.
Moreover, the 2030 World Expo and the 2034 FIFA World Cup are expected to lead to an increase in real estate demand throughout the Kingdom. Thus, Saudi Arabia has pledged to build 340,000 new homes, 4.6 million square metres of new offices, 2.6 million square metres of new retail and 28,800 new hotel rooms, all to be delivered by 2030.
NEOM, in numbers
When it comes to Saudi Arabia’s transformation plan, all eyes are set on NEOM. Poised to become the model of the future of cities, investments in the megaproject have been valued at $500 billion. To date, the super-city has unveiled the details of 12 destinations within its borders, including the $150 billion THE LINE vertical city project.
The report found that, so far, the Kingdom has awarded $28.7 billion in construction contracts for projects across NEOM, including $10.5 billion at THE LINE, $100 million at Magna and $3 billion at Trojena for the construction of the world’s largest man-made lake, which is set to stretch for 2.8km.
