Saudi Real Estate Market Sees Record-Breaking Growth Amidst Regional Friction

Saudi Arabia's macroeconomic performance was supported by non-oil momentum in Q2 2026, with total government expenditure rising 20% year-on-year to drive capital execution across major development corridors.

Despite near-term national GDP growth moderating to 1.7%, the Kingdom continued to see a shift towards physical delivery, with the country's construction index climbing to a record 56.3 as contract awards surged past SAR 29.5 billion in June alone.

The capital's office sector faced supply friction, with sustained demand from international firms helping to maintain Riyadh's prime Grade A occupancy rates near capacity, while driving average prime rents up 3% year-on-year to SAR 3,320 per sqm.