The Saudi real estate market is undergoing significant transformation, propelled by increased demand for land in industrial zones and emerging cities, alongside the proliferation of projects associated with Saudi Vision 2030. Real estate expansion is no longer merely a response to population growth; it is now intrinsically linked to the national industrial boom and the escalating logistical and commercial activities.

Investor Interest in Riyadh and Jeddah Lands

With the number of factories exceeding 12,000 by the end of 2024 and a plan to reach 36,000 within a decade, the demand for land has surged. This is particularly evident in Riyadh and Sudair Industrial City lands, as well as in Jeddah and its environs. This increased demand has led to a rise in the value of commercial and residential properties, especially in areas adjacent to industrial complexes, where a wave of residential and commercial development has commenced to accommodate increased employment.

Is there a tax on land in Saudi Arabia?

Despite the Kingdom imposing a tax on undeveloped "white lands" to curb speculation and encourage development, the escalating demand for land and real estate compels many investors to accept paying the tax in exchange for holding onto their lands, anticipating future value appreciation. Developers perceive this situation as an additional incentive to accelerate construction rather than hoarding land.

Industry Drives Real Estate Market Growth in the Kingdom

Thanks to major projects such as the Land Bridge and the integration of railway networks, industrial areas will achieve greater connectivity with economic centers, making them attractive environments for real estate investment. This transformation reflects that the industrial sector is no longer merely a contributor to the GDP but has become a primary driver for the growth of the real estate market in the Kingdom.

In conclusion, the new reality confirms that the demand for land is no longer confined to major cities but is now directed towards the vicinity of new industrial clusters, which are reshaping real estate investment priorities. With the rapid progress of Saudi Vision 2030, areas such as Al-Kharj, Sudair, and Ras Al-Khair are poised to become major investment and residential hubs in the upcoming phase.