Residential Construction Sector In Saudi Arabia
Saudi Arabia is set to become the world’s biggest construction market. Discover how the residential construction sector is dominating the market.
Saudi Arabia's residential construction sector dominates the Kingdom's building industry, reaching $43.5 billion in 2023. Experts project the sector to grow to $56.9 billion by 2028.
The scale of development matches the ambition—300,000 residential units are planned by 2025's end, with 150,000 currently under construction.
As homeownership targets of 70% drive market growth, investment in housing infrastructure and services surpassed $53 billion, marking a new chapter in Saudi urban development.
Residential Construction Market Highlights
- 31% of total construction output from the residential sector
- $43.5 billion residential sector value in 2023
- 300,000 new homes planned by 2025
- 660,000 residential units targeted by 2030
- 50,000 residential units already completed
Which Are Saudi Arabia’s Most Impressive Giga-Projects Leading the Residental Construction Market?
ROSHN
PIF's flagship developer aims to deliver 400,000 homes by 2030. With $2.4 billion in new partnerships and a $2 billion contract with China Harbour Engineering Company, ROSHN is now working towards building 6,700 residential units, complete with mosques, community centers, and retail amenities.
NEOM's Norlana Development
Rising along the Gulf of Aqaba, this ultra-modern community will feature 711 premium properties. The development will blend mansions and beach villas with world-class amenities, including a 120-berth marina and 18-hole golf course. Norlana is setting new standards in luxury coastal living.
Jeddah Central
Jeddah’s massive 5.7 million sq m development will add 17,000 housing units and 2,700 hotel rooms to the city's inventory. With its first completion targeted for 2027, the three-phase project will transform Jeddah's central district into a world-class residential and tourism destination.
The LINE
NEOM's most ambitious and innovative 170km linear city will house 9 million residents in a car-free environment. Built on just 34 square kilometers, this revolutionary project will create a new model for future communities, blending nature with zero-carbon living and only 20-minute commute times.
Masar
Adjacent to Makkah's Grand Mosque, Masar is a 1.2 million sq m development meant to redefine urban living in the Kingdom’s holiest city. With Umm Al Qura's SAR 900 million investment in new residential towers, Masar will create a modern residential community that respects and enriches its sacred location.
The Kingdom Opened a New Chapter in Residental Construction
Saudi Arabia's residential construction sector is at a pivotal moment when technology meets tradition. The convergence of smart city initiatives, sustainable design, and massive government backing creates unique opportunities.
The updated building requirements focus on quality and livability, and mega-projects set new standards in urban planning, allowing Saudi Arabia to move beyond traditional housing development and into integrated community creation.
As the population heads toward 40 million by 2030, the market responds with groundbreaking solutions. In Saudi Arabia, modular construction methods gained traction, which sped up project delivery while maintaining quality. Sustainable construction practices and eco-friendly materials have become standard, aligning with global green building trends. Smart city initiatives have integrated digital technologies into new developments, from basic infrastructure to home automation.
This transformation, supported by clear regulations and strong private sector participation, positions Saudi Arabia's residential construction market for sustained growth in the future.
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