Saudi Arabia’s real estate market experienced strategic recalibration, steady structural demand drivers, and continued investor confidence despite a more complex regional economic backdrop in the first quarter of this year, a report said.
The Saudi Arabia Real Estate Market Review Q1 report by CBRE Middle East, a global leader in commercial real estate, said the real estate sector continues to demonstrate strength. Transaction values reached SAR112 billion in Q1 2026, up 6.8% year-on-year, supported by improved financing conditions and stronger access to capital.
At the same time, regulatory reforms, including foreign ownership measures and increased market transparency are strengthening institutional participation and aligning the sector with global standards, it said.
Macroeconomic environment
Saudi Arabia’s macroeconomic environment in early 2026 reflects a period of adjustment, shaped by external pressures and evolving domestic policies. Real GDP growth moderated to 2.8% year-on-year in Q1, with full year forecasts for 2026 revised to 1.9%, due to the significant reduction in oil production and exports and softer non-oil expansion.
Inflation remains stable at 1.8%, while foreign direct investment saw strong momentum, rising 90% year-on-year in Q4 2025, signalling confidence in the kingdom’s long-term prospects.
Fiscal policy remains expansionary, supporting major infrastructure investment alongside ongoing capital market reforms aimed at enhancing liquidity and investor access.
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