- Saudi Arabia invests over $1 trillion in infrastructure, transforming its current real estate market.
ESG integration is set to unlock $38 billion in new investment opportunities within Saudi Arabia in sustainable real estate.
Riyadh, Saudi Arabia – June 29, 2025: Saudi Arabia’s real estate market is transforming, driven by ambitious urban development projects that are reshaping the Kingdom’s landscape. PwC Middle East launches its latest report, "Unlocking the future of sustainable real estate in Saudi Arabia," emphasising the significance of today’s real estate landscape and Saudi Arabia’s potential to become a leading hub for sustainable urban living.
With over $1 trillion allocated for innovative infrastructure investments and a projected 30% growth in the real estate market by 2025, this investment underscores the Kingdom’s commitment to economic diversification and positions Saudi Arabia as a leading hub for sustainable urban living and a key player in the global real estate market.
Imad Shahrouri, Cities Sector Lead Partner, Consulting at PwC Middle East, said, “The substantial investments go beyond city development, they represent a commitment to creating sustainable urban environments that drive economic growth and improve the quality of life for all residents. By integrating innovative technologies and sustainable practices, Saudi Arabia is not only enhancing its appeal to global investors but also setting a benchmark for future urban development in the Middle East.”
With a rapidly growing population and increasing urbanisation, there is a significant demand for residential, commercial, and mixed-use developments. The report notes that strategic and sustainable planning is addressing this through high-profile developments such as smart cities and sustainable housing projects. These initiatives mark a robust move towards diversification and modernisation to meet the rising demand for innovative and sustainable housing solutions.
The Kingdom has multiple projects and initiatives aimed at building a world-class residential landscape in Saudi Arabia. By integrating ESG principles with government policies, the Kingdom will unlock $38 billion in new investment opportunities within the real estate market, reflecting their commitment to sustainable solutions that enhance urban areas and meet the needs of a rapidly evolving market and growing population.
Christiane Conrads, Partner, Global Real Estate ESG Leader, PwC Germany, added, “Integrating ESG principles is set to unlock large scale investment opportunities within Saudi Arabia's real estate market. This shift not only promises a more sustainable urban future but also supports responsible resource management and social equity. It positions Saudi Arabia as a leader in responsible real estate development, paving the way for a sustainable long-term living environment.”
As urban living evolves, Saudi Arabia remains committed to developing smart, resilient communities that cater to the needs of a diverse society. The Kingdom’s forward-thinking approach is not only redefining urban living but also integrating advanced technologies and sustainable practices to significantly enhance the quality of life across the region.
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