The real estate sector in Saudi Arabia is coming to a close with a resounding performance in 2025, with an estimated market size of USD 77.2 billion. The recent Oxford Insights report saw Saudi Arabia secure first position in AI readiness in 2025, beating giants in the MENA region. This performance reflects the government’s ability to adopt and leverage AI in public policy. Put in simpler terms, a review of governance, infrastructure, and institutional readiness in Saudi Arabia is not only mature but also sustainable. The technological advancement in the Kingdom has seen the launch of a real estate knowledge hub. The last three quarters have proved the resilience of the real estate sector and its ability to survive the storms of global competition.
Here, let’s take a look at the AI readiness in light of the real estate performance in 2025…
Saudi Arabia Secures First Position in AI Readiness Index 2026
In the latest global ranking, Saudi Arabia secured positions seven and nine in the governance and public-adoption pillars, respectively. This performance is reflected in the increased adoption of AI in the Ejar platform for automatic checks. In 2025, lease contract documents on the platform exceeded 8 million. With a high documentation rate of 18,000 daily, AI plays an important role in automated data checks to verify contracts and limit disputes between landlords and tenants.
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Another technological breakthrough is the tokenization of the real estate title deeds, which has ensured increased investment in the sector. Under the new model, property owners can now convert ownership into tradable digital units to enable investors to hold shares in a single asset. This has triggered an expansion in the investment base while increasing the market liquidity to finance the real estate projects in the Kingdom.
Policy Intervention on Real Estate Sector in 2026
The New Ownership Law for Non-Saudis is expected to take effect in 2026 in an attempt to open the market for foreigners and attract USD 100 billion in FDI by 2030.
The White Land Tax, which aims to trigger development in over 411 million square meters of underdeveloped and undeveloped lands, aims to eliminate speculation and promote real estate development.
The five-year rent-freeze in Riyadh, with the aim of stabilizing costs for businesses and residents beginning September 2025, is to improve the city’s appeal to investors as a global business hub.
These, plus other policy interventions, have contributed to the exemplary performance of the real estate in the Saudi Arabian market. Notably, position one ranking is one aspect of the market appeal to the global investors. However, the Kingdom’s real market sector has contributed.
Development Pipelines Resulting in the Ranking
The outcome due to technological advancement and AI readiness is reflected across the real estate sector. For instance, there is USD 1.55 trillion in potential investment and over USD 440 billion in committed projects. The office sector is also facing a demand stretch with 634 global companies settling in Riyadh following the headquarters program. The growth shows continued demand for spaces with the occupancy rates remaining at 98% and a 15% rent increase year-on-year.
Residential activities equally remained stronger at 17.9% quarter-on-quarter growth in transactions, while the retail sector reported increased consumer spending. The overall performance of the real estate is the result of policy and technological development that is reflected in the current AI readiness ranking.
In sum…
Expectations in the real estate sector remain high, with the market size estimated to reach USD 137 billion by 2034. The market trends are already showing a positive outlook, with the Kingdom of Saudi Arabia taking key global positions as reflected in the 2025 AI Readiness Index. This is the primary foundation of heightened technological and policy advancements that show a greater potential for success as the Kingdom comes to the Vision 2030 homestretch.