The Impact of Tourism on the Saudi Arabia Real Estate Market

With ambitious plans to attract 70 million tourists annually by 2030, Saudi Arabia is on a mission to become a global tourism powerhouse. As Minister of Tourism Ahmed Al-Khateeb highlighted at the WEF meeting, the Kingdom is setting its sights on ranking among the top seven global destinations. But how does this surge in tourism in Saudi Arabia reshape the real estate? And what does it mean for investors, developers, and residents alike?

In this blog, we will explore the major impact of tourism on the real estate sector and the future of tourism and real estate in Saudi Arabia. We’ll also take a closer look at how DarGlobal is setting new benchmarks with exclusive, high-end properties in Saudi Arabia’s most prestigious locations.

Growth of Tourism in Saudi Arabia

The Kingdom of Saudi Arabia has quickly become a worldwide travel destination thanks to its ambitious Vision 2030 plan aimed to diversify the economy beyond oil. Some of the key drivers of tourism in Saudi Arabia:

• Religious Tourism – The expansion of Makkah and Madinah to accommodate millions of pilgrims annually.
• Leisure and Entertainment – Development of theme parks, entertainment zones, and mega cultural festivals.
• Eased Travel Policies – Introduction of e-visas and simplified entry processes to attract global visitors.

Overview of the Saudi Arabia Real Estate Market

With investments flowing into residential, commercial, and hospitality properties, Saudi Arabia’s real estate sector is witnessing robust expansion. Some of the key real estate trends are:

• Boom in Urban Developments – High demand for premium residences, mixed-use spaces, and smart city projects.
• Rise in Hospitality Investments – Growth of luxury hotels, resorts, and branded residences to accommodate increasing tourism in Saudi Arabia.
• Increased Foreign Investment – Relaxed property ownership laws attracting global investors to the Saudi market.

Impact of Tourism on the Real Estate Sector

Saudi Arabia’s ambitious tourism vision is reshaping its real estate landscape. With the government investing heavily in infrastructure, hospitality, and entertainment, the demand for luxury residences, commercial spaces, and vacation properties is on the rise.  

Here is how the surge in tourism is impacting the real estate sector;

1. Residential Real Estate

The surge in tourism has indirectly fueled Saudi Arabia’s residential real estate sector, as increased economic activity and job creation attract more residents. In the H1 of 2024, the number of residential property transactions rose by 38%, with the total transaction value reaching SAR 127.3 billion (US$33.9 billion).

Major cities like Riyadh and Jeddah have seen notable price hikes, with Riyadh experiencing a 10% increase and Jeddah recording a 5% rise. This demand is driven by urban expansion, government-led housing initiatives, and an influx of expatriates and workers supporting tourism in Saudi Arabia.

2. Commercial Spaces

As businesses expand to cater to tourism-related industries, demand for high-quality office locations has surged in the Saudi Arabia real estate market. Riyadh, the country’s economic center, saw office rental rates jump by 18% in 2024 due to limited availability and growing corporate demand.

Likewise, Jeddah and Dammam are experiencing steady rental price increases of 10-12%, reflecting the expansion of multinational companies and local enterprises. This trend highlights how tourism-driven economic activity is reshaping the commercial real estate landscape.

Foreign Investment in Saudi Arabian Real Estate

Saudi Arabia’s real estate market is increasingly attracting foreign investment, driven by the Kingdom’s large-scale development initiatives and economic diversification under Vision 2030. One of the most significant indicators of this growing interest is the Diriyah giga-project, which secured deals worth nearly $1 billion with European firms as of September 2024. This reflects the confidence of international investors in the Kingdom’s long-term vision and its ability to deliver large-scale, world-class tourism in Saudi Arabia. 

Key Real Estate Developments Driven by Tourism

The real estate sector is changing to satisfy the growing demand for luxury living and high-end commercial spaces as Saudi Arabia welcomes international visitors and investors. Thus, DarGlobal brings you exclusive real estate opportunities in Saudi Arabia’s most prestigious locations.

Here are some key developments making an impact of tourism in Saudi real estate:

1. Neptune, Interiors By Mouawad– A Waterfront Masterpiece

Positioned as one of the most prestigious waterfront developments in Saudi Arabia, Neptune, Interiors by Mouawad offers you an exclusive living experience that integrates elegance, craftsmanship, and seaside serenity.

• Luxury Meets Legacy – Designed in collaboration with Mouawad, a renowned luxury brand, the interiors exude a refined aesthetic, blending timeless artistry with modern sophistication.
• Exclusive Residences – Featuring high-end apartments with panoramic sea views, Neptune provides residents with a serene coastal retreat while ensuring proximity to key urban attractions.

2. Trump Tower Jeddah– A New Icon in the Skyline

Saudi Arabia’s real estate and tourism landscape is set to be redefined with the arrival of Trump Tower Jeddah, a landmark development that epitomizes luxury, grandeur, and architectural excellence. 

• A Global Statement – As part of DarGlobal’s prestigious portfolio, Trump Tower Jeddah brings the internationally recognized Trump brand to one of the kingdom’s most dynamic cities.
• Outstanding Design & Amenities – Featuring state-of-the-art residences, high-end retail spaces, and premium hospitality services, the tower is designed for discerning buyers seeking an elevated lifestyle.

Future Outlook for Tourism and Real Estate in Saudi Arabia

With huge growth, sustainability-driven projects, and increasing international interest, the Saudi kingdom will become a world-class tourist and investor destination. This is what the future holds for this powerhouse;

1. Increasing Tourist Arrivals

The tourism industry of Saudi Arabia is seeing record growth fueled by various primary factors:

• Diversifying Attractions – Cultural heritage landmarks like Diriyah Gate and AlUla, entertainment mega-events like Riyadh Season, and luxury vacation resorts on the Red Sea shores are pulling newer segments of tourism.
• Hosting Global Events – By hosting global events such as Formula 1, WWE, and the 2034 FIFA World Cup, the kingdom is increasing its international profile as a tourist destination.

2. Sustainable and Smart Cities

Saudi Arabia is focusing on creating smart, sustainable cities that integrate technology, green infrastructure, and urban innovation. These projects are not just transforming Saudi tourism but also reshaping the real estate landscape:

• NEOM – A $500 billion futuristic city featuring AI-driven infrastructure, renewable energy, and high-tech urban planning.
• The Red Sea Project – A very luxury tourism destination designed to be 100% powered by renewable energy, featuring eco-friendly resorts and marine conservation initiatives.

These smart cities are setting new benchmarks for urban living, enhancing both tourism in Saudi Arabia and the overall real estate value.

Conclusion

In conclusion, Saudi Arabia's tourism boom is not just turning the Kingdom into a worldwide destination but also reshaping foreign investment in the country. At DarGlobal, we're at the forefront of this shift with a portfolio of premium, exclusive properties in the country's most desirable hotspots.

Our developments, like the high-end waterfront homes of Neptune, Interiors by Mouawad, combine elegance and top investment value. With Saudi Arabia marching on to being a world-class tourism giant, we provide you with the top real estate investment opportunities. Discover unique opportunities with DarGlobal today and make a difference in the future of luxury living.