Market Growth Becomes More Selective

Saudi Arabia’s property market entered the second half of 2026 in a period of recalibration. Long-term fundamentals remain strong, but residential demand is becoming increasingly price- and affordability-sensitive, favouring well-located and correctly priced projects over broad market speculation. 

Real estate transaction value reached SAR 112 billion in Q1 2026, up 6.8% year-on-year, while Q2 recorded 53,663 transactions worth SAR 72.3 billion. Residential prices increased 1.3% year-on-year, but financing conditions and affordability are playing a larger role in buyer decisions. 

Demand remains structurally supported by population growth, household formation and Saudi Arabia’s homeownership agenda, although buyers are becoming more selective about value, location and end-user demand. 

Riyadh Office Market Remains a Standout

Riyadh continues to offer one of the strongest commercial property stories. Prime office rents reached SAR 3,320 per sqm in Q2 2026, up 3% year-on-year, while Grade A occupancy remained near full capacity. 

Limited high-quality supply, corporate expansion and continued Vision 2030 investment are supporting office demand. Broader opportunities are also emerging across hospitality, logistics, industrial, mixed-use and infrastructure-linked assets, supported by tourism development, economic diversification and major construction activity. 

Outlook

Saudi Arabia remains a positive long-term growth market, but investment is shifting toward a more fundamentals-driven approach. Riyadh is likely to remain the strongest opportunity, while investors should prioritise location, tenant or end-user demand, cash flow visibility and development execution.

Affordability pressure, financing conditions and differences between prime and secondary locations remain key risks, reinforcing the need for a selective rather than broad-based investment strategy.

The contents of this article were contributed by Shareef Ghaleb Kattan, Head of IQI Saudi Arabia.

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Riyadh Leads a Resilient Property Market

Saudi Arabia’s real estate market remained resilient in July 2026, supported by Vision 2030 projects, infrastructure investment and sustained residential demand.

Riyadh continued to lead growth across both the residential and commercial sectors, while hospitality and logistics benefited from tourism expansion and broader industrial development.

Residential transactions remained above 20,000, signalling continued underlying demand even as overall transaction volumes moderated compared with the previous year.

In the commercial market, Riyadh remained the Kingdom’s strongest-performing location, with prime office rents continuing to rise amid limited Grade A supply. This supply-demand imbalance is helping support rental performance in the capital. 

Mega-Projects Continue to Support Investor Confidence

Saudi Arabia’s large-scale development pipeline remains central to its long-term real estate story.

Major projects including NEOM, Diriyah Gate, New Murabba, King Salman Park, Qiddiya, Jeddah Central and the Red Sea developments continue to attract domestic and international attention.

These projects, combined with ongoing foreign investment reforms, are reinforcing confidence in the Kingdom’s property market despite some moderation in transaction activity.

The broader investment environment also remains supported by Saudi Arabia’s long-term economic fundamentals, infrastructure expansion and continued efforts to improve market accessibility for international investors.

Outlook

Saudi Arabia’s property market is expected to remain resilient through the second half of 2026.

Residential price growth may remain modest, but government investment, population growth and business expansion should continue to support demand across residential, commercial, hospitality and logistics sectors.

The strongest opportunities are likely to remain in markets benefiting from limited prime supply, major infrastructure investment and long-term Vision 2030 development, with Riyadh continuing to stand out as the Kingdom’s key commercial growth centre.

The contents of this article were contributed by Shareef Ghaleb Kattan, Head of IQI Saudi Arabia.

The post Saudi Arabia Property Market 2026: Vision 2030 Projects Support Resilient Growth appeared first on IQI Blog.

Property Fundamentals Pass the Mid-Year Test

The first half of 2026 tested global property markets through regional security tensions, temporary repricing and changing financing conditions.

What followed was a rapid recovery and a clearer investment picture. Capital is now moving towards markets supported by demographics, infrastructure and policy, rather than short-term speculation.

The United Arab Emirates demonstrated strong resilience. Dubai recorded approximately AED 286 billion in property sales during H1 2026, the second-highest first-half result on record. Rental yields remain near 7%, while freehold ownership, tax-free rental income and Golden Visa eligibility continue to attract international investors.

Saudi Arabia is emerging as a new foreign investment destination following the introduction of its non-Saudi property ownership law in January 2026. Riyadh offers gross yields of around 7% to 9%, while apartment rents have risen nearly 20% year-on-year. More than 780 multinational companies have also committed to establishing regional headquarters in the Kingdom. 

Malaysia and Japan Offer Different Strengths

Malaysia remains one of ASEAN’s most accessible growth markets. Property transactions reached RM241.9 billion in 2025, while Johor attracted a record RM110 billion in approved investment.

The upcoming Rapid Transit System Link between Johor Bahru and Singapore is strengthening interest near station locations, where selected units have already appreciated 18% to 20%. Prime transit-linked properties in the Klang Valley continue to offer yields of approximately 4% to 5%.

Japan provides a more defensive opportunity. The average price of a new condominium in Tokyo’s 23 wards reached ¥137.8 million, up 18.5%, while supply fell to its lowest level since 1973. High occupancy, transparent ownership rules and a weaker yen continue to support demand.

Outlook

The strongest property opportunities in the second half of 2026 are likely to be found in markets where policy reform, infrastructure investment and genuine demand support long-term returns.

The UAE and Saudi Arabia offer stronger yields, Malaysia provides accessible growth, while Japan remains a stable portfolio anchor.

The post Where to Invest in Property in 2026: Four Global Markets to Watch appeared first on IQI Blog.

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.

The post Saudi Arabia Property Market Outlook 2026: Vision 2030 Sustains Growth appeared first on IQI Blog.

Saudi Residential Market Cools After Rapid Growth

Saudi Arabia’s residential property market is entering a clear cooling phase after several years of strong price growth.

The national Real Estate Price Index stood at 103.3 in Q1 2026, down 0.2% quarter-on-quarter and 1.6% year-on-year. The decline was mainly driven by housing, where prices fell 3.6%, led by lower residential land, apartment and villa prices.

The correction is most visible in Riyadh, where real estate prices declined 4.4%. This marks a sharp shift after the capital recorded strong gains in both 2023 and 2024.

The main pressure point is affordability. After major price increases over the past five years, higher mortgage costs have reduced buyer activity and pushed the market into a more selective phase.

However, this is not a weak market story. Rental demand remains strong. In Riyadh, apartment rents rose 19.6% year-on-year, while villa rents increased 17.2%. Saudi Arabia’s average gross rental yield stood at 6.84% in Q1 2026, supporting income-focused investors. 

Policy Support and Foreign Ownership Strengthen Long-Term Demand

Saudi Arabia’s long-term housing fundamentals remain supported by Vision 2030, which targets a 70% homeownership rate, lower down payments and greater mortgage liquidity.

The country is also expected to need more than 800,000 additional homes by 2030, pointing to a continued supply gap.

A major catalyst is the new foreign ownership law, which took effect in January 2026, allowing non-Saudis to buy property in the Kingdom for the first time.

Outlook

Saudi Arabia’s market is shifting from fast capital gains to a more fundamentals-driven cycle.

For investors, mid-2026 may offer a buyer repricing window, especially where rental demand, policy support and long-term supply needs remain strong. The outlook is more disciplined, but still attractive for investors focused on income, quality assets and long-term market growth.

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