Saudi Arabia’s real estate sector is entering a new phase of rapid expansion, with a major Riyadh-based developer reporting accelerating demand, rising project pipelines, and regulatory changes that are reshaping market dynamics. The company is concentrating its efforts on the capital this year, with plans to roll out 10,000 residential units over the next five years and an investment portfolio exceeding SAR 10 billion dedicated to land and future acquisitions.

Alongside this growth push, recently implemented rules on rent escalation and an expanded white land fees regime are beginning to influence pricing behavior and land utilization. Together, these measures are intended to moderate excessive rent increases, encourage development on idle plots, and support a more balanced supply-demand environment in the Saudi market, particularly in Riyadh.

Rapid Development in Saudi Real Estate

The Saudi real estate market is currently characterized by rapid development that is generating both substantial opportunities and operational challenges for developers. The momentum is allowing well-positioned companies to deliver higher-quality projects at more competitive prices, leveraging economies of scale and improved cost controls.

However, this pace of expansion requires developers to forge new alliances, attract specialized expertise, and align with the broader national transformation program. Market participants are increasingly focused on integrated, large-scale projects that can respond to evolving urban needs, demographic growth, and lifestyle expectations.

Regulatory Moves Support Price Stability

Recent regulatory steps to halt automatic annual rent increases on leased spaces are emerging as a key stabilizing factor for the market. By limiting the ability of landlords to raise rents each year as a default practice, the framework aims to curb abrupt price spikes driven solely by return maximization.

This approach is designed to foster greater price stability, which can benefit both landlords and tenants. Landlords are encouraged to focus more on service quality and asset enhancement, while tenants gain greater visibility on future costs. Over time, such measures can also support the development of a more mature leasing market, with improved service standards across commercial and residential assets.

White Land Fees Unlock Development Partnerships

The white land fees system is playing a central role in unlocking dormant land resources, especially in and around Riyadh. Historically, significant tracts of undeveloped land appreciated in value despite remaining idle, tying up capital and limiting their contribution to economic activity.

Under the fee framework, landowners are incentivized to move from land hoarding to active development. This shift encourages the launch of new, high-quality projects that can expand supply, support long-term urban planning goals, and address the housing and commercial space needs of a growing city. Developers increasingly view this system as an opportunity to form development partnerships with landowners who seek to unlock the value of their plots rather than incur recurring fees.

Foreign Ownership and Demand Diversification

Clarity and transparency in property ownership regulations are becoming an important driver of new demand segments, including interest from non-resident buyers and regional investors. Experiences in nearby markets have shown that a clear regulatory framework can attract additional customer niches and stimulate investment in urban developments.

In response, developers in Saudi Arabia are designing projects that appeal to both local and international clients. This includes fine-tuning unit sizes, configurations, and amenities to suit a broader mix of buyers and residents, while still aligning with domestic market needs. The emphasis is increasingly on lifestyle-led communities that can serve Saudis and non-Saudis alike.

Liwan’s Expanding Pipeline and Investment Capacity

Against this backdrop, one key Riyadh developer reports a backlog approaching SAR 6 billion, reflecting a robust pipeline of ongoing and planned projects. Its investment portfolio exceeds SAR 10 billion, earmarked for strategic land investments and future acquisitions across targeted locations.

The company has also been working with banks and financial institutions to support entry into new projects, indicating rising confidence from lenders in the sector’s growth outlook. Such collaborations provide access to structured financing solutions that can underpin large-scale developments and phased project rollouts.

Focus on Riyadh Before Wider Expansion

For the current year, the developer’s activities are concentrated in Riyadh, where demand for modern, integrated communities is particularly strong. The strategic focus on the capital allows tighter coordination with city-level planning priorities and proximity to major infrastructure and employment hubs.

Starting in 2026, the company plans to explore expansion into additional cities across the Kingdom. This phased approach aligns with the objective of first consolidating its presence and brand in Riyadh before replicating successful development models elsewhere.

Ambitious Target of 10,000 New Homes

Over the next five years, the developer aims to deliver around 10,000 residential units. This target reflects a commitment to scale, with an emphasis on quality, competitive pricing, and alignment with evolving customer expectations.

The pipeline is expected to support the city’s broader housing goals and respond to rising demand driven by population growth, urban migration, and changing household structures. The developer’s model focuses on integrating residential units into larger, mixed-use environments rather than isolated housing-only complexes.

Specialization in Large Mixed-Use Complexes

The company is positioning itself as a specialist in mixed-use projects built on plots starting from 50,000 square meters. These developments are designed as integrated neighborhoods that combine residential, commercial, hotel, tourism, and entertainment components.

Such projects seek to create self-contained communities where residents and visitors can access key services within a compact area. This model is intended to support efficient land use, reduce commuting times, and enhance overall liveability in dense urban environments.

Five-Minute-Walk Lifestyle in High-Demand Areas

In Riyadh, there is strong demand for projects that offer a lifestyle structured around proximity to daily services. Congestion and rising mobility pressures in the city are increasing the appeal of neighborhoods where most essential needs can be met within a five-minute walk.

Developments that prioritize walkability, access to retail, healthcare, education, and leisure, and integration with public or shared transport options are gaining traction. The developer’s current and planned projects are being structured around this concept, reflecting both market demand and evolving urban design principles.

Leveraging International Experience for Local Projects

The company brings more than 25 years of experience from projects executed outside the Kingdom. This background includes the development of modern communities and integrated complexes in other markets, providing a tested playbook for design, phasing, and operations.

The current strategy focuses on adapting these successful models to the Saudi context. This includes tailoring architectural styles, amenities, and community layouts to local cultural, regulatory, and climatic conditions while maintaining international standards of quality and functionality.

Cityscape Global 2025 Showcases Flagship Projects

At Cityscape Global 2025, the developer is showcasing two major projects, underscoring its active role in the Kingdom’s real estate transformation. One of these, the Liwan Livin project, is a flagship development that illustrates the company’s mixed-use and lifestyle-driven approach.

Liwan Livin covers approximately 45,000 square meters, with built-up areas exceeding 200,000 square meters. The project comprises 616 units, positioning it as a sizable community-scale development rather than a single-building asset.

Strong Sales and Construction Progress at Liwan Livin

Construction progress at Liwan Livin has reached around 50%. Structural works are reported to be fully completed, while about 20% of finishing works have been carried out so far.

The project is targeted for delivery by the end of 2026, placing it within a medium-term horizon for handover. This timetable allows for the continued rollout of finishing, infrastructure, and community amenities while sustaining pre-sales and marketing efforts.

Nearly SAR 1.5 Billion in Unit Sales

Market appetite for Liwan Livin has been strong. Approximately 70% of the project’s units have already been sold, with total sales value reaching around SAR 1 billion.

The remaining units, valued at roughly SAR 500 million, are expected to be sold over the near term. This sales performance underscores the depth of demand for lifestyle-oriented, mixed-use developments in Riyadh and highlights the project’s positioning within the upper tier of the local residential market.

Outlook for a Promising Market

The Saudi real estate market continues to be viewed as one of the most promising arenas for developers capable of delivering high-quality, demand-responsive products. Riyadh, in particular, is undergoing a significant transformation supported by large-scale public and private investments, expanded infrastructure, and regulatory modernization.

In the coming period, the market’s attractiveness is projected to remain strong as more high-quality projects are launched and the investor and user base broadens. Developers with deep pipelines, robust financial capacity, and experience in integrated communities are well placed to participate in this next phase of growth.

Next Steps and Ongoing Plans

Over the next several years, the developer plans to maintain its focus on completing existing projects in Riyadh, including the full delivery of Liwan Livin by the end of 2026. It will continue to deploy its SAR 10 billion investment portfolio into land acquisitions and new developments, while working with financial institutions to structure funding for upcoming projects.

Beginning in 2026, the company intends to initiate exploratory work for expansion into additional Saudi cities, alongside implementing its plan to develop 10,000 residential units over five years. At the same time, it will keep advancing mixed-use complexes of at least 50,000 square meters, guided by the regulatory framework on rents and white land fees and by the evolving demand for walkable, integrated urban communities.