Saudi Arabia's Real Estate Market Heats Up with Non-Oil Economic Growth and Regulatory Reforms

The Kingdom of Saudi Arabia is experiencing robust non-oil economic growth, which has fueled real estate development and investment in various sectors. According to CBRE's Q2 2026 report, Saudi Arabia remains one of the world's most active real estate markets, supported by ongoing regulatory reforms and a significant pipeline of infrastructure projects.

The report notes that non-oil economic activities expanded by 2.9% year-over-year in Q1 2026, driving overall GDP growth to 3%. This sustained investment environment has benefited the kingdom's real estate sector, with large-scale projects progressing across multiple sectors. Major contracts were awarded in various areas, including Riyadh, Makkah, Madinah, and Aseer.

The residential market saw a moderate decline in transaction volumes, with 41,000 transactions worth SAR38 billion, down from the previous year. However, the National Residential Price Index increased by 2.6% year-over-year, supported by continued end-user demand and land scarcity in key urban markets. The implementation of regulations under the Law on Non-Saudi Ownership of Real Estate has opened new opportunities for international investment within designated areas.

The office market remains one of the kingdom's top-performing asset classes, particularly in Riyadh, where demand for Grade A office space continues to outpace available supply. CBRE notes that major multinational corporations are establishing operations under the Regional Headquarters (RHQ) program, driving growth across technology, healthcare, financial services, and consulting sectors.