4 factors driving the growth of the real estate market in Saudi Arabia during 2026
A new report on the Kuwaiti financial position (Markaz) expects that the real estate market in the Gulf Cooperation Council countries in general, and in Saudi Arabia in particular, will maintain its upward path until the first half of 2026, based on the strong momentum recorded in the latter part of 2025.
The report indicated that rising oil production, growth of the non-oil economy, and continued government spending on infrastructure and development projects, along with lowering interest rates, are expected to improve liquidity and credit growth, which will contribute In supporting borrowing and investment activities in the residential, commercial and industrial real estate sectors.
The real estate sector in Saudi Arabia: continuous growth
The Real estate in Saudi Arabia accelerated growth during the second half of 2025, driven by strong activity in the residential and office units market.
And Residential units increased by 17.9% on a quarterly basis in the third quarter of 2025, with Riyadh and Jeddah topping the list of the most active cities, while developers continued to increase supply through mega projects and luxury residential complexes.
As for the office sector, it continued to suffer from great pressure, especially with rising demand thanks to the regional headquarters program and the expansion of the healthcare and technology sectors.
The report expects continued capital spending on For the real estate sector and construction activities within "Vision 2030"to keep pace with demand in the commercial and residential sectors, especially with continued population growth.
Based on these indicators, the report suggests that the real estate market in the Kingdom of Saudi Arabia is still in a phase of accelerated growth, and is expected to maintain its momentum during the first half of 2026, which indicates market stability and the possibility of achieving more gains for investors.
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