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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