II. THE “WHY” BEHIND THE BOOM
A. Mixed-Use Expansion & Population growth
Since the inception of Vision 2030 in 2016, Saudi Arabia has embarked on an ambitious journey of economic diversification and infrastructure development. By 2024, the Kingdom had launched real estate and infrastructure projects valued at approximately $1.3 trillion, encompassing a wide array of developments, including residential units, commercial spaces, and hospitality projects.
In Riyadh alone, significant projects are underway:
The New Murabba
Anchored by the iconic Mukaab, set to be the world’s largest built structure, this $50 billion mixed-use megaproject will deliver over 100,000 residential units, 9,000 hotel rooms, and a highly walkable, tech-integrated urban core. It is expected to contribute SAR 180 billion to non-oil GDP and create 334,000 new jobs by 2030.
King Abdullah Financial District (KAFD)
Following a $7.8 billion activation plan, KAFD is on track to become the largest financial district in the region, offering 1.6 million sqm of office and residential space for over 12,000 residents and thousands of daily commuters.
Population dynamics are equally influential. Riyadh’s population is growing not only through natural increase but also through internal migration and the strategic attraction of international talent. This surge requires an estimated 305,000 new housing units to meet demand. With 63% of the national population under the age of 30, there is a pronounced shift toward modern, lifestyle-driven housing typologies—a key priority in Saudi Arabia’s evolving urban agenda.
B. Investment Reforms
The liberalization of real estate ownership laws has emerged as one of the most powerful catalysts behind Riyadh’s property boom. These regulatory shifts are not merely legal updates—they are a fundamental reshaping of how the city engages with global investors.
1. Foreign Ownership Now Permitted in Riyadh
In a landmark policy shift aligned with Vision 2030, foreign investors are now allowed to directly own property in Riyadh—a privilege previously reserved almost exclusively for Saudi nationals. This reform has opened the floodgates for institutional investors, real estate funds, and individual buyers from abroad, dramatically expanding the potential investor base.
2. Abolition of Licensing Barriers
As of August 2024, the New Investment Law replaced the outdated, cumbersome licensing regime with a far more streamlined registration process. Now, foreign investors no longer need a specialized license to buy property or invest in real estate development. Instead, they are simply required to register their investment with the Ministry of Investment, as long as the activity is not on the excluded sectors list.
3. Institutional Participation and Capital Inflows
With regulatory risk significantly reduced, Riyadh is witnessing a growing presence of real estate investment trusts (REITs), private equity funds, and global property developers. These players are not only injecting capital but also raising the bar for quality and professionalism in Riyadh’s property market.
C. Infrastructure Boosting Property Demand
Riyadh’s explosive property growth is not occurring in a vacuum—it is being strategically fueled by one of the most ambitious urban infrastructure overhauls in the region. From metro systems to major highway expansions, Riyadh’s connectivity revolution is transforming real estate demand patterns across the capital.
1. Metro-Led Urban Transformation
Now fully operational as of early 2025, the Riyadh Metro is a game-changer. Spanning 176 kilometers across six lines and featuring 85 stations, it is one of the largest public transit systems in the Middle East—and a critical lever for unlocking real estate value.
High-Interest Zones: Districts like Al Malqa, Al Yasmin, and the King Abdullah Financial District are experiencing a spike in investor interest and residential leasing, largely due to their proximity to metro lines.
Capital Gains & Rental Premiums: Properties located within 500 meters of a metro station are projected to see a 15–25% increase in value over five years, while rental yields in these zones are 10–15% higher than properties farther away from transit nodes.
Wider Economic Ripple: The metro is also reshaping the commercial real estate landscape. Improved accessibility has made emerging business hubs more viable, helping to decentralize demand and support sustainable city growth.
2. Road Networks Driving Expansion
Beyond public transit, Riyadh is investing heavily in road infrastructure to support its outward expansion and reduce congestion in urban cores. In February 2025, the Royal Commission for Riyadh City (RCRC) launched the second phase of the Ring Roads and Main Axes Development Program, with eight major road projects totaling more than SAR 8 billion ($2.13 billion).
For example, the Prince Turki bin Abdulaziz Al-Awwal Road Development Project (Northern Section)—a 6 km corridor featuring two major intersections, three bridges, and a tunnel—is designed to handle over 200,000 vehicles per day, effectively linking high-growth northern districts with central and western Riyadh.
