Saudi Arabia's Non-Oil Economy Powers Real Estate Growth
The real estate market in Saudi Arabia is experiencing significant growth due to its expanding non-oil economy, regulatory reforms, and substantial infrastructure projects. According to CBRE's Saudi Arabia Real Estate Market Review for Q2 2026, the kingdom's GDP grew by 3% year-on-year in Q1 2026, driven by a 2.9% expansion in non-oil economic activities.
The real estate sector is benefiting from this sustained investment environment, with large-scale projects progressing across various sectors. Riyadh remained a key focus of investment activity, while other cities such as Makkah, Madinah, the Eastern Province, and Aseer also recorded substantial project awards.
On the residential market, transaction volumes moderated, but price growth remained positive at 2.6% year-on-year nationally. The implementation of regulations under the Law on Non-Saudi Ownership of Real Estate opened new opportunities for international investment within designated areas across the Kingdom.
The office market remains one of the top-performing asset classes in Saudi Arabia, particularly in Riyadh, where demand for Grade A office space continues to outpace available supply. Demand is driven by multinational corporations establishing operations under the Regional Headquarters (RHQ) program and expansion across various sectors.