JLL: Riyadh Growth Driven By $100bn Construction Pipeline And Metro

Riyadh, Saudi Arabia: Riyadh’s real estate market is entering a decisive phase of transformation, underpinned by unprecedented infrastructure investment, regulatory reform and accelerating Vision 2030 delivery. According to leading global real estate consultancy JLL, the Saudi capital is being reshaped by a USD 100 billion construction pipeline, a USD 22 billion metro network, and a rapidly expanding 2.7GW data centre pipeline that is redefining the city’s long-term urban and economic trajectory.

These themes were explored during the JLL Riyadh Roundtable, where senior industry leaders examined the macroeconomic environment and the forces shaping Riyadh’s office, residential, retail, hospitality and emerging asset classes, including AI infrastructure and transit-oriented development.

Vision 2030 And Market Recalibration

Saud Alsulaimani, Country Lead and Head of Capital Markets at JLL Saudi Arabia, said Riyadh continues to sit at the centre of the Kingdom’s national transformation agenda.

“Riyadh stands at the forefront of Saudi Arabia's Vision 2030, presenting unparalleled opportunities for investors and developers,” he said.

“The national priorities are continuously recalibrating, ensuring strategic alignment of projects and fostering deeper private sector collaboration. Regulatory shifts, such as the introduction of White Land Taxes and the rent freeze, are designed to stabilize markets and will ultimately drive a renewed focus on delivering premium assets.”

Alsulaimani added that evolving construction cost dynamics in certain segments are fundamentally reshaping the development landscape, accelerating progress toward national objectives while encouraging more disciplined project execution.

Read more: JLL Unveils Real Estate Knowledge Hub to Advance Expertise in Saudi Arabia

Metro Investment Unlocks Transit-Oriented Development

Infrastructure investment emerged as a defining catalyst, with JLL highlighting the transformative role of the Riyadh Metro. Mireille Azzam Vidjen, Head of Consulting, Middle East and Africa at JLL, outlined the scale of the city’s transit revolution.

“The Riyadh Metro, a USD 22.5 billion investment spanning 176km with six lines and 84 stations, provides comprehensive geographic reach, boasting a coverage depth of 9.8 km per 100 sq km,” she said.

Vidjen noted that the metro creates significant transit-oriented development opportunities, with properties near stations potentially commanding a 20–30 percent premium. She also emphasised the importance of climate-responsive last-mile mobility solutions to ensure accessibility in Riyadh’s hot climate.

AI Infrastructure Emerges As A New Growth Engine

The roundtable also examined Saudi Arabia’s rapid emergence as a regional AI and data infrastructure hub. Gaurav Mathur, Head of Data Centers at JLL, highlighted the scale of investment underway.

“The Kingdom is rapidly scaling up its data center capacity, with an impressive 2.7 GW in pipeline, transforming land and power planning into core national infrastructure,” he said.

Mathur explained that AI infrastructure is becoming a powerful economic multiplier, driving demand across logistics, office, hospitality and residential sectors, while positioning Saudi Arabia as a leading AI compute hub for the region.

USD 100bn Construction Market Signals Long-Term Confidence

Maroun Deeb, Head of Projects and Development Services, KSA at JLL, highlighted the depth of the construction pipeline supporting Riyadh’s growth.

Valued at USD 100 billion in 2025 and forecast to grow at 5.4 percent annually through 2029, the construction sector continues to manage challenges related to skilled labour, material pricing and supply chains, while increasingly leveraging BIM and digital tools to improve efficiency.

While tender price inflation is expected to range between an annual average of plus or minus 2 percent, Deeb stressed that proactive cost management remains critical. Despite these pressures, the outlook remains robust, particularly in Riyadh, supported by mega-events such as Expo 2030, the FIFA World Cup 2034 and King Salman International Airport, alongside legislative reforms and Public Investment Fund-backed private sector partnerships.

A Global Capital Magnet In The Making

JLL concluded that Riyadh’s growth is being shaped by a rare convergence of large-scale infrastructure investment, advanced technology adoption and regulatory momentum.

With sustained focus on innovation, sustainability and execution, the city is positioning itself as a resilient and indispensable hub for real estate development and a powerful magnet for global capital. As Vision 2030 accelerates, Riyadh’s transformation is no longer aspirational but firmly underway, laying the foundations for long-term, diversified economic growth.