The real estate sector in the Madinah region recorded remarkable growth in 2024 in terms of the number of real estate transactions and the total area sold, reflecting the vitality and diversity of real estate activity and its ability to adapt to economic and social changes, in line with the goals of Saudi Vision 2030 for sustainable urban development.

A report issued by Al Maqar Development and Investment Company – the investment arm of Madinah Municipality – revealed the completion of 9,454 real estate transactions in the region during 2024, with a total value estimated at about 7 billion riyals, while the sold areas exceeded 14.8 million square meters, distributed among agricultural, residential, and commercial sectors.

The residential sector registers a strong presence

The residential sector accounted for about 44% of the total area, supported by banking facilities and real estate financing programs, which helped increase individual freehold ownership and boost investment in residential complexes, in line with the rapid population growth in the city.

As for the commercial sector, it witnessed a 5% decrease in the area sold compared to the previous year, as investments shifted toward long- and short-term uses of commercial lands, according to the Saudi Press Agency (SPA).

Momentum returns to the market after two years of fluctuation

The report explained that the real estate market in Madinah regained its momentum after fluctuating performance over the past two years. In 2022, 8,935 real estate transactions were completed with a total area of 14.6 million square meters, while 2023 was affected by interest rate hikes, which led to a decline in the number of transactions to 7,162, with an area of 14.5 million square meters.

Positive outlook for the future of the real estate market in Madinah region

The report concluded by noting that the positive performance recorded in 2024 reflects the continued growing local demand for real estate projects, which contributed to boosting market activity and consolidating Madinah’s position as an attractive destination for real estate investment, amid promising indicators of continued sector growth in the coming years, within the framework of Vision 2030’s objectives to build smart cities and achieve balanced urban development.

Edited by: Imtilak Global©