A growing economy and a young population is driving demand for more real estate, says the report. About 45 per cent of Saudis are under the age of 20.
The report, called the Gulf's Powerhouse - Saudi Arabia's Real Estate Market, adds that the stock of commercial space is expected to increase by more than 60 per cent by 2012.
Demand for hotels is also expected to benefit from growth in religious tourism over the next few years.
The report was published on 25 November.