The Saudi real estate sector increases its contribution by 26.7% to non-oil private output
The real estate sector achieved Saudi ArabiaAn increase in its economic contribution during the third quarter of 2025, while its contribution to the non-oil private sector reached 26.7%.
According to the The real estate sectorIn Saudi Arabia, issued by the General Real Estate Authority, the sector’s contribution to the gross domestic product rose to 14.1% during the same period.
This continuous improvement in contribution rates shows the vital role that the sector plays in supporting growth and diversification The national economy, supported by the great activity in the ongoing construction and development projects.
Job Localization
Job localization programs in real estate activities have achieved" An exceptional leap, and the percentage of Saudis participating in the workforce increased to 54.4% by the end of the third quarter of 2025, recording a remarkable growth on an annual basis.
This major achievement reflects the success of policies and programs encouraging nationalization in this sector, which enhances the participation of national human capital in one of the vital economic sectors.
Trading in the Financial Market
Trading activity in the financial market for the real estate sector showed different trends during the third quarter of 2025. While management and development companies witnessed… Real Estate (TRMI) increased the value of its transactions by 3.7% on an annual basis, reaching 20.5 billion riyals.
The value of real estate traded funds (REITS) transactions decreased by -14.6% on an annual basis. However, real estate companies maintained their clear dominance over trading activity in the sector. This disparity between the components of the real estate financial market reflects the diversity of investment patterns and the extent of investors’ interaction with market conditions and real estate sector cycles.
Real estate prices
Real estate asset prices responded to the slowdown in the injection of financing liquidity, and the real estate price index recorded a quarterly decline of 1.1%, and an annual decline of 0.9%.
This correction was more evident in the “villas” product." Which recorded a quarterly decline in its prices by 2.5%.
Corrective movement
This decline reflects a healthy corrective movement that restores balance to inflated prices and makes them more compatible with the current purchasing power.
Employment indicators in the real estate sector witnessed a noticeable variation, and the total number of participants on the job decreased quarterly by 0.4%.
This decline was more severe in "Real estate activities" Which declined by 29.8% annually, while activity grew "Construction" by 14.8% annually.
Structural shifts
This variation reflects structural shifts in the labor market within the sector, with new job creation concentrated in field construction and development activities compared to traditional administrative and marketing activities.
The consumer price index for the rental category recorded a continuation of the annual growth pace during September 2025, driven by an increase in actual and estimated housing rents.
This increase reflects continuing pressures on the Demand in the rental market, especially in major cities, in light of the expansion of economic activity and increasing residential demand, which makes rents one of the most prominent components of inflation associated with the real estate sector during this period.
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