As modernization and urban development transform Saudi Arabia’s retail real estate sector, sales are expected to increase from 2.4% in 2024 to 2.7% by 2027, reaching $183.2 billion.

In its 10th annual “Saudi Arabia Real Estate Predictions” report, global consultancy firm Deloitte, referencing the Economist Intelligence Unit, revealed that retail sales in Saudi Arabia amounted to $142.7 billion in 2022.

The report highlighted that Saudi Arabia’s post-pandemic economic recovery, eased travel restrictions, and improved visa processing have significantly boosted the hospitality sector, contributing to the overall growth in retail sales.

The findings further revealed that the construction industry’s contribution to Saudi Arabia’s GDP is projected to reach $37.4 billion this year, up from $35.2 billion last year.

While the residential real estate market experienced a decline in transaction volumes, the report noted that rising sales prices for villas and apartments indicate strong demand for residential properties in key urban areas.

“Residential preferences are shifting toward homes that accommodate remote work by incorporating wellness-centric features. Simultaneously, the retail and hospitality sectors are adapting to changing consumer behaviors, with a focus on e-commerce and experiential spaces,” the report said.  

Fast Company Middle East’s Next Big Things in Retail Summit, which will be held on November 12 in Riyadh, will cover key topics in retail, such as experiential retail, traditional store optimization, and e-commerce strategies like social commerce and hyper-personalization. It will also discuss how design and innovation will play a role in reshaping the retail landscape. Delegates can register here.