Robust branded stock and 30k hotel keys to bolster Jeddah’s real estate ahead of Vision 2030
Jeddah’s real estate sector is booming thanks to a robust pipeline of 1,000 branded residential units and over 30,000 new hotel keys targeting completion by 2030 as part of Saudi’s ambitious Vision 2030. The market evolution was highlighted at the annual roundtable meeting hosted by Jones Lang LaSalle’s (JLL), a leading global commercial real estate and investment management company. At the meeting, industry leaders discussed Jeddah’s macroeconomic backdrop and key trends shaping its office, residential, retail, and hospitality sectors.
Saud Alsulaimani, Country Lead and Head of Capital Markets at JLL Saudi Arabia, emphasised on the broader market context, stating, “Jeddah is pivotal to Saudi Arabia's Vision 2030, offering significant investor opportunities. National priorities are pivoting, aligning projects with objectives and fostering private sector collaboration, alongside evolving PIF delivery structures. These strategic shifts and evolving market fundamentals are crucial for long-term market stabilization and will drive a focus on premium assets. This, coupled with easing construction costs, is fundamentally reshaping the market.”
The growing branded residential sector was a pivotal point of discussion at the meeting. A pipeline of 1,000 units to be ready by 2030 is complementing the city’s existing stock of 400. There is a shift in trend as developers are engaging automotive and fashion brands to add value to their properties, thereby creating more investment options beyond hospitality-linked residences.
The retail sector is also experiencing substantial growth, with 310,000 square metres of new Gross Leasable Area (GLA) introduced in 2025 (over 10 percent of existing stock). This expansion integrates into mixed-use developments, fostering live-work-play environments. Emerging formats like cloud kitchens and dark stores are gaining traction in central Jeddah.
Faris Maqdah, Director, Strategic Consulting at JLL, commented, “Jeddah's branded residential sector is experiencing notable development, with around 1,000 branded residential units planned for delivery by 2030. Market interest in these developments continues to evolve, with success dependent on developers delivering the right product-price combination that balances quality and service standards with affordability considerations. The retail landscape is also undergoing significant transformation, driven by consumer demand for convenience and integrated lifestyle offerings. With the retail sector being reshaped by mixed-use integration and innovative formats, these developments present compelling opportunities for developers and investors to meet Jeddah's evolving demographic preferences and activate new micro-clusters that enhance the end-user experience.”
The hospitality landscape is thriving, demonstrating six percent Compound Annual Growth Rate (CAGR) from 2020 to 2025. According to an analyst at JLL KSA, mega events undertaken by Saudi Arabia, such as FIFA World Cup 2034, will catalyse the growth of the hospitality sector, drawing lessons from the Qatar World Cup's impact.
Meanwhile, office sector continues to show resilience, with persistent undersupply in Grade A stock driving rental growth and a "flight to quality." Taimur Khan, Head of Research for the Middle East and Africa, JLL, noted opportunities in refurbishing assets, integrating flexible office solutions, and securing pre-leasing for new developments.
Discussions also covered the broader construction market, acknowledging significant challenges like skilled labour shortages, high material costs, supply chain disruptions, and financial complexities of mega-projects. Contractual disputes and regulatory hurdles impact timelines. Yet, a strong outlook for 2026 and beyond remains, driven by critical policy changes, new real estate opportunities, and a strategic shift towards modular construction and Public-Private Partnership (PPP) funding. The government's proactive role, through legislative reforms, tax breaks, and direct support, is creating a powerful magnet for both domestic and foreign investors. PIF subsidiaries are actively diversifying and partnering with the private sector, opening significant avenues for private participation in major programs, especially those prioritised for EXPO 2030, KSIA and the FIFA World Cup 2034.
Maroun Deeb, Head of Projects and Development Services, KSA at JLL, said, “While the Saudi construction market faces genuine challenges, particularly around attracting new international contractors to the market, supply chain, and labour force, these are being actively addressed through strategic mitigation plans. The regulatory improvements shift towards modular construction, PPP models, and greater private sector involvement is creating a more resilient and efficient delivery ecosystem. The government's commitment to attracting foreign and domestic investment, coupled with PIF's evolving partnership models, further solidifies the foundation for this growth.”
Jeddah's critical role in Saudi Arabia's economic diversification under Vision 2030 is undeniable. With strategic investments, evolving regulatory frameworks, and a sharp focus on innovation and sustainability, the city is solidifying its position as a vibrant hub for real estate development and a key destination for global capital.
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