Executive Summary
The Saudi Arabian real estate market remains in a favourable position with stable growth in non-oil activities, strong performance of the hospitality sector, and increased government spending on infrastructure projects. Q1 2024 numbers indicate a rebound in sales transactions and average prices in the residential sector. The office sector also performed positively with increases in office rents and the growth in rents in regional malls were favourable signs for the retail sector. Key drivers for the positive performance of the hospitality sector include increases in business travel, Hajj and Umrah pilgrims, international events as well as cultural and entertainment offerings.
On analysis of various macroeconomic factors, economic growth is supported by constantly expanding non-oil sector, government spending, and recovering private sector activity. On the other hand, volatile oil prices, higher-for-longer interest rates, and global economic slowdown present some headwinds.
