Saudi Arabia’s Vision 2030 is a comprehensive plan aimed at diversifying the country’s economy and reducing its dependence on oil revenues. One of the sectors expected to undergo significant transformation is the real estate market. In this blog, we will explore the impact of Vision 2030 on the Saudi Arabian real estate market.

Firstly, it’s important to understand the key pillars of Vision 2030 that will impact the real estate market. These include the promotion of tourism and the development of mega-projects, the increase of home ownership rates, and the growth of the private sector.

Tourism is a key focus of Vision 2030, with the government aiming to attract 100 million visitors annually by 2030. This has led to the development of new tourism destinations and the expansion of existing ones, such as the Red Sea project and NEOM, a futuristic city planned to be built in the north-western region of Saudi Arabia. These projects are expected to create a significant demand for real estate, particularly in the hospitality and retail sectors.

Another significant goal of Vision 2030 is to increase home ownership rates among Saudis from 47% to 70%. To achieve this, the government has launched several initiatives, such as the Sakani program, which provides affordable housing solutions to low and middle-income families. The program aims to build 500,000 new homes by 2030. This initiative will boost the real estate sector and create opportunities for developers and construction companies.

Furthermore, the growth of the private sector is expected to have a positive impact on the real estate market. As part of Vision 2030, the government has implemented several reforms aimed at attracting foreign investment and encouraging entrepreneurship. The ease of doing business in the country has improved significantly, making Saudi Arabia a more attractive destination for investors. This has led to an increase in demand for office and retail space, particularly in major cities such as Riyadh and Jeddah.