Vision 2030 Continues to Drive Market Momentum
Saudi Arabia’s real estate market maintained strong momentum in June 2026, supported by Vision 2030, major infrastructure investment and continued population growth.
Demand remains healthy across the residential, commercial, hospitality and logistics sectors, particularly in Riyadh, Jeddah and Dammam.
Large government-backed developments, including NEOM, Diriyah Gate, The Red Sea and Qiddiya, continue to attract domestic and international capital. These projects are also creating long-term demand for housing, offices, hospitality assets and supporting infrastructure.
Residential and Office Sectors Lead Growth
Residential property remains the market’s largest segment, accounting for an estimated 45% of investment activity. Demand is being supported by homeownership programmes, improved mortgage accessibility and rising urbanisation.
Commercial property represents around 25% of investment, while hospitality accounts for 15%. Industrial assets contribute approximately 10%, with mixed-use projects making up the remaining 5%.
Office leasing activity is strengthening as corporations expand and multinational companies establish regional headquarters in Riyadh. Industrial and logistics properties are also benefiting from e-commerce growth and increased supply chain investment.
Among major cities, Riyadh recorded the highest investment activity index at 100, followed by Jeddah at 82 and Dammam at 65. Makkah and Madinah recorded indices of 58 and 50 respectively.
Outlook
Saudi Arabia’s property outlook for 2026 to 2028 remains positive.
Prime residential locations are expected to record further price appreciation, while office demand should remain supported by regional headquarters expansion. Logistics and industrial developments may outperform as supply chains and e-commerce activity grow.
Continued regulatory reforms and Vision 2030 projects are also expected to support higher foreign investment, transaction activity and stable rental growth over the medium term.
