Riyadh’s real estate market is undergoing a transformative shift, influenced by strategic shifts, the acceleration of Vision 2030, and diverse sector opportunities says JLL. At JLL’s annual client event, industry leaders delved into the city’s macroeconomic backdrop and identified key trends shaping its office, residential, retail, hospitality, and emerging sectors such as AI infrastructure and transit-oriented development.
Saud Alsulaimani, Country Lead and Head of Capital Markets at JLL Saudi Arabia said, “Riyadh stands at the forefront of Saudi Arabia’s Vision 2030, presenting unparalleled opportunities for investors and developers. The national priorities are continuously re-calibrating, ensuring strategic alignment of projects and fostering deeper private sector collaboration.”
He continued, “Regulatory shifts, such as the introduction of White Land Taxes and the rent freeze, are designed to stabilise markets and will ultimately drive a renewed focus on delivering premium assets. This dynamic environment, coupled with the pivot around construction costs in certain segments, is fundamentally reshaping the market landscape and accelerating progress towards our national objectives.”
The event highlighted significant impact of infrastructure projects, with Mireille Azzam Vidjen, Head of Consulting, Middle East and Africa at JLL, presenting Riyadh’s Transit Revolution. Riyadh Metro, a US $22.5bn investment spanning 176km with six lines and 84 stations, offers comprehensive geographic reach, covering 9.8km per 100 sqkm.
This strategic investment presents substantial opportunities for development of transit-oriented developments (TOD), with properties potentially commanding a premium of 20-30%. JLL underscored the importance of climate-responsive last-mile solutions to enhance accessibility in Riyadh’s hot climate.
Discussions further explored the AI infrastructure sector, with Gaurav Mathur, Head of Data Centres at JLL, highlighting KSA’s AI infrastructure boom. The Kingdom is rapidly scaling up its data centre capacity, with 2.7GW in the pipeline, transforming land and power planning into core national infrastructure. This AI expansion is positioned as an economic catalyst, driving growth across logistics, offices, hospitality, and residential sectors, solidifying KSA’s global standing as the region’s AI compute hub.
Maroun Deeb, Head of Projects and Development Services, KSA at JLL highlighted the construction market’s significant future projects pipeline. Valued at $100bn in 2025 with 5.4% annual growth projected through 2029, the sector actively manages complexities like skilled labor, material costs, and supply chain dynamics, leveraging BIM adoption for efficiency.
While tender price inflation is forecast at an annual average of +2% to -2%, proactive cost management is key. Despite these, the market maintains a strong outlook, particularly in Riyadh, bolstered by events like EXPO 2030, FIFA World Cup 2034, and KSIA, alongside legislative reforms and PIF’s private sector partnerships, creating powerful investment magnets.
With unprecedented strategic investments in game-changing infrastructure, technology, and emerging sectors, Riyadh is not just evolving; it’s forging its path to global expansion. This is made possible by dynamic regulatory frameworks and an unwavering focus on innovation and sustainability, the firm said.
Riyadh’s transformative growth is being driven by metro investment, data centres and construction says JLL Middle East Construction News.
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