Future of Saudi Arabia Home Furniture Market

The Saudi Arabia home furniture market is entering a new phase of growth, driven by housing expansion, evolving consumer preferences, and shifting lifestyles. With the market projected to grow at a CAGR of 7.4% between 2024 and 2030, demand is being fueled by new residential developments, rising incomes, and supportive government programs.

At the same time, a parallel trend is reshaping the sector—renting furniture. While homeownership continues to boost sales of essential and luxury items, more consumers, especially expatriates and young professionals, are turning to rentals for flexibility and affordability.

Market Overview & Growth Forecast

Market Size & Expected CAGR (2024–2030)

The home furniture market in Saudi Arabia is expected to expand steadily through 2030, supported by rapid industrialization and urbanization. The increase in residential housing projects has boosted sales of beds, sofas, wardrobes, and other essential furniture.

Luxury demand is also rising as higher disposable incomes allow consumers to invest in premium designs. Together, these dynamics position the sector for long-term growth.

Distribution Channels: Online vs Offline Sales

Furniture sales have historically been driven by offline channels, where consumers can assess quality and fit before purchase. Large showrooms and specialty retailers remain important, particularly for high-value items.

However, online channels have gained momentum since 2020, offering attractive discounts, doorstep delivery, and secure payment options. While online demand has largely focused on smaller items like chairs and side tables, it is expected to expand into larger categories as digital trust grows.

What Drives Buying Behavior in Furniture

Housing Ownership Trends & Government Programs

Government initiatives such as the Saudi Housing Program (2018) and the Sakani Program have been instrumental in expanding homeownership. These efforts, aligned with Vision 2030, aim to raise ownership rates to 70% by 2030.

The growth in new housing units directly drives demand for furniture, as families moving into their homes require both essential and decorative pieces.

Aesthetic Preferences, Luxury & Premium Segments

A growing share of consumers are investing in bedroom furniture, particularly beds. Preferences differ across income groups:

• High-income households often favor premium, imported furniture.
• Middle- and low-income buyers opt for mid-range and affordable options available locally or from regional suppliers.

This diversity in preferences ensures that demand spans across multiple price points, supporting steady market growth.

Rise of Renting Furniture: Why Now?

Temporary Residents & Expats & Short-Term Housing Needs

Saudi Arabia’s large expatriate population has significantly influenced the rental market. Many residents on fixed-term contracts prefer renting over buying, as it meets their short-term housing needs without requiring major financial investments.

Youth Trends: Fashion, Design, Flexibility Preferences

Young professionals in urban centers are also driving the shift to rentals. For this segment, flexibility, mobility, and design variety matter more than long-term ownership. Renting enables them to keep up with changing design trends while avoiding the commitments tied to permanent purchases.

Comparative Cost, Convenience & Lifestyle Impacts

Cost Breakdown: Renting vs Buying Over Time

Buying requires a significant upfront investment but offers long-term value, as furniture typically lasts for years. Renting spreads out expenses, making it more affordable in the short run, but it may become more costly if extended over many years.

Storage, Upkeep, Mobility, Obsolescence

Furniture ownership requires storage space, maintenance, and eventual replacement. Renting shifts these responsibilities to providers, making it appealing to consumers who value convenience. Renters also avoid the risk of obsolescence, since they can easily update styles without major expense.

Segments Most Affected: Expatriates, Young Professionals, Urban Dwellers

The expatriate community represents the largest rental segment, reflecting temporary housing needs. Young professionals in cities like Riyadh, Jeddah, and Dammam also find rentals attractive for their flexibility.

Meanwhile, families purchasing homes under government housing initiatives continue to drive the largest share of buying demand. Together, these groups illustrate the dual nature of the market—ownership driving purchases and mobility encouraging rentals.

Business Models & Retailer Response

Rental Companies / Furniture-as-a-Service Models

Furniture rental companies have emerged with subscription-based services that cover delivery, installation, and removal. These models align well with the needs of temporary residents and young consumers.

Retailers Adding “Rental / Lease / Subscription” Options

Traditional retailers are also adapting by adding leasing and rental options alongside direct sales. This hybrid approach allows them to serve both permanent homeowners and short-term renters, capturing growth across consumer segments.

Policy, Real Estate & Ownership Trends Intersecting Furniture Choices

Homeownership Rate Goals (Vision 2030 target: 70%)

Government-backed initiatives to increase ownership are expected to drive long-term buying demand. Subsidized loans, favorable financing options, and rapid construction are all contributing to the expansion of the residential sector.

Property Prices vs Affordability & How That Pushes Renting

At the same time, high property prices in urban hubs have created affordability challenges. This dynamic leads many residents to rent homes instead of buying, and in turn, encourages renting furniture rather than purchasing it outright.

Future Outlook: What’s Next in Renting vs Buying

Looking ahead, the home furniture market in Saudi Arabia will continue to grow strongly, supported by residential expansion and government housing programs. Buying will remain dominant, anchored by Vision 2030’s homeownership goals.

However, renting will keep gaining traction, especially among expats and youth. Multifunctional furniture—such as sofa beds, modular wardrobes, and space-saving designs—will appeal to both buyers and renters, reflecting broader lifestyle shifts.

Retailers that adapt by offering both traditional sales and rental services are likely to capture the greatest opportunities in the evolving market.

Conclusion

The Saudi Arabia home furniture market is set for steady growth, expanding at a projected 7.4% CAGR through 2030. Government housing programs, residential sector expansion, and consumer interest in home design are fueling strong demand for purchases.

At the same time, renting is emerging as a viable alternative, particularly for expatriates and young professionals. This duality—ownership-driven buying and lifestyle-driven renting—is defining the sector’s future.

Companies that embrace this dual demand, offering both permanent and flexible solutions, will be best positioned to thrive in the years ahead.