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التقنية العقارية
Apr 16, 2025

Short-term rentals will transform leisure and business travel experiences in KSA

Sabine El Najjar, Chief Commercial Officer and KSA Managing Director - Silkhaus 

 

Saudi Arabia is currently experiencing a transformative shift in its tourism and real estate sectors, driven by the ambitious Vision 2030. As the Kingdom positions itself as a global tourism and business hub, the short-term rental market is emerging as a key enabler for growth in the hospitality industry.  

At the heart of Saudi Arabia’s short-term rental growth is Vision 2030, the country’s long-term economic diversification strategy. With the goal of attracting 150 million annual visitors by 2030, the government is heavily investing in infrastructure, hospitality, and tourism experiences. Mega projects such as NEOM, The Red Sea Project, Qiddiya, and Diriyah Gate are creating new destinations, increasing the need for expansive accommodation options beyond traditional hotels. A number of major trends in the market are indicative of the demand from guests.  

Rising Demand from Business Travelers 

The Saudi government is recognising the importance of short-term rentals in meeting this demand and has been working on regulatory frameworks that ensure a structured and professional rental market while encouraging investment. By facilitating licensing processes, improving property management standards, and supporting professional operators, the government is making it easier for both local and international players to enter and thrive in this space. 

Saudi Arabia’s rapidly expanding business hubs, particularly in Riyadh, Jeddah, and NEOM, are fueling a surge in demand for accommodations from corporate travelers. Riyadh, the capital and financial center, is home to multinational corporations, government institutions, and major industry events. Meanwhile, NEOM is attracting global talent, with business executives, project managers, and expatriates needing flexible, high-quality accommodation. 

Unlike traditional hotels, short-term rental properties offer business travelers more space, privacy, and home-like amenities, making them a preferred choice for extended stays. 

Regulatory Evolution & Licensing Compliance 

As the offer for short-term rental options matures, the Saudi government is taking steps to ensure that operators comply with hospitality standards, taxation policies, and safety regulations. In the past, short-term rentals were dominated by individual hosts, but now, new regulations are favoring structured property management companies that can provide a professional and consistent experience. 

Authorities are implementing clearer licensing requirements, which will help establish trust and reliability in the sector. These regulations will likely set minimum quality standards, pricing guidelines, and guest verification procedures, ensuring that short-term rentals align with Saudi Arabia’s vision for a high-quality tourism and business environment. 

Those who align with regulations early on will gain a competitive advantage, ensuring for themselves a stable position in a market set to grow relentlessly in the next few years. 

Growth of Branded & Serviced Apartments Create Trust with Guests 

One of the most noticeable trends in Saudi Arabia’s short-term rental market is the growing preference for branded and serviced apartments. Unlike traditional vacation rentals, serviced apartments offer hotel-like services such as housekeeping, concierge support, and premium amenities, making them particularly attractive to high-net-worth individuals, corporate travelers, and families. 

This trend is especially evident among Saudi families traveling for major events, such as Riyadh Season and Jeddah Season. These large-scale cultural and entertainment festivals attract millions of visitors, creating demand for luxurious, spacious, and well-managed accommodations. Instead of booking hotel rooms, families prefer short-term rental apartments that offer more flexibility and privacy, particularly when traveling in groups. 

Religious tourism in Makkah and Madinah is further driving demand for short-term rentals. Pilgrims visiting these cities for Hajj and Umrah often seek accommodation that combines comfort, convenience, and affordability, making professionally managed rental properties a desirable alternative to hotels. 

Increase in Market Players & Investment Opportunities 

With demand on the rise, both local and international operators are expanding their footprint in Saudi Arabia. Since 2020-2021, local players have been actively scaling their businesses across multiple cities, capitalizing on the surge in demand. At the same time, global short-term rental companies like Silkhaus have entered the market, recognizing Saudi Arabia’s potential as a major hospitality hub. 

This influx of experienced operators, technology-driven platforms, and professional management firms is reshaping the industry: guests can expect standardized service, seamless booking experiences, and premium quality—factors that were previously inconsistent in the Saudi short-term rental market. 

For investors, Saudi Arabia presents a lucrative opportunity in short-term rentals. The combination of rising tourism, strong government backing, and increasing professionalization of the sector makes it an attractive space for real estate developers, hospitality brands, and property owners looking to maximize returns. 

Looking Ahead: What’s Next for Saudi’s Short-Term Rental Market? 

Saudi Arabia’s short-term rental market is entering a pivotal phase, driven by the country’s ambitious event calendar of the next few years and increasing global visibility. Major international events like the FIFA World Cup and Expo are on the horizon, and demand for high-quality, well-located accommodations will surge. Operators, to keep pace, must scale rapidly: portfolio expansion, distribution channels optimization, and technology leverage for higher guest volumes are the next must-have. These years will also push the industry toward greater standardization, as travellers expect seamless, hotel-like experiences. 

At the same time, we expect the competitive landscape to shift. As the market matures and regulatory frameworks stabilize, we can expect a wave of consolidation. Larger players will likely absorb smaller operators who struggle to meet evolving guest expectations and compliance requirements. Institutional investors, hotel brands, and real estate funds may also enter the space, bringing greater professionalism and capital to accelerate growth. The industry will transition from fragmented growth to a more structured and competitive ecosystem, where scale, operational efficiency, and brand reputation will define long-term success. 

Saudi Arabia’s short-term rental market is definitely entering an exciting phase of growth and transformation. With strong government backing, evolving regulations, and increasing demand from business and leisure travelers, the sector is rapidly becoming a key pillar of the Kingdom’s tourism strategy. 

As local and international players continue to scale operations, and improve service quality, Saudi Arabia is well-positioned to become a leading market for short-term rentals in the Middle East. For investors, property owners, and hospitality operators, the time to enter this dynamic market is now. 

 

 

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Feb 5, 2025

Building Tomorrow: How PropTech is Shaping Saudi Arabia

Ghada Ismail

 

Saudi Arabia’s real estate sector is in the midst of a profound transformation, driven by the rapid adoption of Property Technology (PropTech). No longer confined to the fringes of the industry, PropTech has become a game-changer, reshaping property transactions, management, and investment with cutting-edge digital solutions. 

 

The range of PropTech capabilities broadens to include significant instruments starting from AI-powered property matchmaking to blockchain-secured contracts, virtual property tours, or AI-driven property management, rewriting the rules of real estate. With Vision 2030 fueling a national shift toward innovation and sustainability, Saudi Arabia is emerging as a powerhouse in the global PropTech revolution. As investors, startups, and policymakers rally behind this digital shift, the Kingdom is setting a new standard for how real estate is bought, sold, and managed in the 21st century.

 

Understanding the PropTech Ecosystem

PropTech encompasses a wide range of technologies designed to improve real estate processes. These innovations include AI-driven property valuations, blockchain-based transactions, smart building solutions, and IoT-integrated urban planning. The integration of these technologies into Saudi Arabia’s real estate sector is fostering transparency, efficiency, and smarter decision-making across the board. 

 

Speaking the language of numbers, Saudi Arabia’s PropTech sector saw a 35% annual increase in venture capital investments in 2023, reaching $9 million, according to a report issued by the leading startup directory MAGNiTT.

The Kingdom is said to be leading the Middle East, Africa, Pakistan, Turkiye, and Southeast Asia in deal count, closing six PropTech transactions last year. In total funding, Saudi Arabia ranked fifth among these markets, further cementing its position as a growing hub for real estate innovation.

 

Despite a broader global slowdown in PropTech funding, the Saudi market demonstrated resilience, aligning with the country’s Vision 2030 initiatives that promote real estate digitalization and smart technology adoption.

The report also highlighted that key PropTech subsectors, including property marketplaces, co-working spaces, tenancy management, and facility management, continue to attract investor interest in the Kingdom. 

 

Saudi Arabia’s Real Estate Market: A Breeding Ground for PropTech

In October last year, the Real Estate General Authority (REGA) announced the launch of a Saudi PropTech Hub (sph) at the opening of the Global PropTech Summit, with an ambition to serve entities interested in real estate technology, both domestically and internationally.
 

The hub’s main aim is to provide services designed to strengthen stakeholders in the sector, acting as a primary channel for innovation in real estate technologies in the Kingdom with several key initiatives included in sph: the regulatory sandbox, the real estate technology accelerator, the Global PropTech Summit itself, and the PropTech Council.
as a natural result of such comprehensive efforts, the Kingdom planted every possible seed to become a fertile ground for the PropTech revolution with several key factors driving this transformation.

 

What’s Driving PropTech Growth in Saudi Arabia

Saudi Arabia’s Vision 2030 initiative is a key factor in propelling the growth of the PropTech market. The Kingdom is working hard to reduce its reliance on oil and diversify its economy, with real estate being one of the focal points. With large investments flowing into infrastructure, urban development, and smart city projects, the stage is set for PropTech to thrive and reshape the real estate landscape.

 

The country’s real estate market is also booming, fueled by rapid urbanization, a growing population, and a rising demand for both residential and commercial properties. This surge in growth is creating a need for PropTech solutions that can make property management smoother, improve the user experience, and increase efficiency across the board.

 

On top of this, technological advancements play a huge role in the sector’s evolution. The rise of smartphones, internet connectivity, and cloud computing are all creating the perfect environment for PropTech solutions to flourish. Plus, the government is actively supporting the digital transformation of industries, accelerating PropTech adoption in real estate.

 

Finally, the entrepreneurial spirit is alive and well in Saudi Arabia. With a young, tech-savvy population, the Kingdom is seeing a wave of startups bringing fresh, innovative ideas to the PropTech space. These startups are pushing the boundaries of what’s possible, offering solutions that address the changing needs of property owners, investors, and tenants alike.

 

Breaking Down the Saudi PropTech Market

The PropTech market in Saudi Arabia can be divided into several areas, with different solutions and applications catering to diverse needs.

  • Business Intelligence: These tools focus on data analytics, offering insights into market trends, property performance, and investment opportunities.
  • Facility Management: Solutions designed to streamline the management of building operations, maintenance, and services.
  • Portfolio Management: Tools that help manage and optimize property portfolios, including risk management and asset allocation.
  • Real Estate Search: Platforms making it easier to search for residential and commercial properties, with the integration of virtual and 3D touring options.
  • Asset Management: Solutions for handling property assets, from leasing to sales and maintenance.
  • Enterprise Resource Planning (ERP): These systems integrate all aspects of real estate operations, from finances to human resources.
  • Others:  Niche solutions such as legal tech, property financing, and tenant management systems are also making their mark.

 

Key Players and Emerging Startups

Saudi Arabia’s PropTech landscape is home to a mix of established players, disruptive startups, and government-backed initiatives. Here are some of the most influential entities reshaping the sector:

Leading Startups Driving PropTech Innovation

  • Sakan: Sakan property technology platform is a leading full-stack real estate marketplace, founded to provide a unique and integrated property experience for various stakeholders in the real estate sector. Sakan comes with a mission to offer innovative and creative PropTech solutions in the MENA region and digitize various aspects of the property journey. Sakan sets its key objective to facilitate and enhance real estate transactions and effectively cater to the growing demand by real estate agents, property management companies, landlords, and tenants. A cutting-edge PropTech platform, Sakan offers AI-driven property matching and digital rental agreements.
  • Musanada : Specializing in smart property management solutions that leverage automation for maintenance, tenant interactions, and real-time analytics, Musanda is an award-winning facilities service in Saudi Arabia offering a full range of integrated facilities management solutions tailored to meet client needs.
  • Bayut and Dubizzle (Emerging in Saudi Market):  Dubai-based listings sites expanding their presence in Saudi Arabia to introduce a comprehensive property search and transaction platform.

Institutional and Government-Backed Initiatives

  • Public Investment Fund (PIF): Spearheading investments in real estate tech startups as part of its broader economic diversification strategy.
  • Saudi Venture Capital Company (SVC): Supporting early-stage PropTech startups through funding, mentorship, and growth acceleration programs.
  • Ejar System: A government-backed digital rental platform that aims to regulate and streamline the leasing process across the Kingdom. Ejar is a comprehensive rental service e-network established with the aim of regulating the real estate rental sector in Saudi Arabia and preserving the rights of all parties involved in the leasing process —tenant, lessor, and broker. To foster growth in the real estate rental sector and promote its reliability, Ejar offers a large set of e-solutions. Real estate investment is also encouraged by the Program.

The Challenges Facing Saudi Arabia’s PropTech Boom

Despite its rapid ascent, the PropTech sector in Saudi Arabia faces several challenges that could slow its momentum:

  • Regulatory Complexity: Navigating the evolving legal landscape for digital property transactions can be daunting for startups and investors alike.
  • Data Security and Privacy Concerns: As PropTech platforms digitize sensitive real estate data, cybersecurity threats become a major concern.
  • Adoption Resistance from Traditional Players: Many established real estate firms remain hesitant to embrace new technology, slowing down sector-wide transformation.
  • Infrastructure and Connectivity Issues: Although Saudi Arabia is rapidly expanding its digital infrastructure, certain regions still face challenges in seamless PropTech adoption.

How Startups Are Overcoming These Barriers

Forward-thinking PropTech startups are addressing these obstacles through strategic initiatives:

  • Collaboration with Regulators: Companies are working closely with the Saudi government to shape policies that encourage digital transformation while ensuring compliance.
  • Embracing Blockchain and AI for Transparency: Technologies like smart contracts and AI-powered risk assessments are being deployed to enhance trust and security in property transactions.
  • Developing Market Education Strategies: Through partnerships with real estate developers and consumer awareness campaigns, PropTech firms are fostering greater acceptance of digital solutions.

Future Trends: Where is Saudi PropTech Headed?

Saudi Arabia’s PropTech scene is poised for further disruption, with several emerging trends set to shape its future:

  • Smart City Expansion: As giga-projects like NEOM continue to evolve, PropTech solutions will play a critical role in enabling AI-driven urban planning and sustainable living.
  • AI-Enhanced Marketplaces: Property platforms will increasingly leverage AI and big data to offer predictive insights, personalized recommendations, and automated pricing models.
  • Blockchain-Powered Real Estate Transactions: Expect to see wider adoption of decentralized ledgers to facilitate transparent and secure real estate dealings.
  • FinTech-PropTech Convergence: The integration of digital mortgage platforms, tokenized property investments, and AI-driven lending solutions will redefine real estate financing.
  • Sustainability and Green PropTech: With a growing emphasis on sustainability, real estate developers are incorporating energy-efficient smart buildings, IoT-powered utility management, and AI-driven carbon footprint tracking.

 

Conclusion: The Future is Digital

Saudi Arabia's PropTech sector is no longer just emerging, it’s leading a quiet revolution in how the Kingdom builds, buys, and interacts with real estate. By seamlessly integrating cutting-edge technologies with the nation’s ambitious urban visions, PropTech startups are playing a key role in shaping smarter, more sustainable communities.

 

The momentum is undeniable. As the kingdom steps further towards advanced proptech practices varying from digitized property transactions to AI-powered analytics and eco-friendly construction innovations.  The sector’s potential stretches far beyond convenience, it rather promises to redefine the very fabric of real estate in Saudi Arabia.

 

As the country balances rapid growth with long-term sustainability goals, PropTech stands at the crossroads of opportunity and transformation. For anyone watching closely, this is more than an industry shift—it’s a glimpse into the future of urban living, where innovation becomes a cornerstone of progress.

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