Executive Summary
Saudi Arabia 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. Though the residential sector transactions have declined under the effect of the higher interest rates on mortgages and sticky property prices, sales price in the residential segment has shown a positive trend in Q3 2023. Office sector has also performed strongly. Measures taken by the government such as ensuring homeownerships for Saudi citizens and setting up regional headquarters by multinational companies would continue to provide impetus to the real estate sector.
On analysis of relevant macro factors that would impact Saudi Arabia’s property market, while non-oil GDP, investments and moderate inflation are supportive of the sector’s growth in 2024, factors such as high interest rates might pose some headwinds.
