RIYADH: Saudi Arabia’s residential market recorded nearly 93,700 deals in the first half of the year, a 7 percent year-on-year increase, driven by strong mortgage activity and government support, according to Knight Frank.
The segment accounted for 63 percent of total real estate activity in the Kingdom, with transactions valued at SR77.5 billion ($20.6 billion), the consultancy said in its latest market overview.
This comes as Saudi Arabia’s real estate market maintained steady growth in the second quarter, with overall property prices across the Kingdom rising 3.2 percent year-on-year, official data showed. Residential property costs recorded a 0.4 percent increase, according to the General Authority for Statistics.
The performance highlights a broader surge in the Saudi real estate sector, driven by the nation’s economic diversification strategy. With the Real Estate General Authority projecting the market to reach $101.62 billion by 2029, housing has become a key pillar in the Kingdom’s Vision 2030 strategy to reduce reliance on oil.
“One of the most significant legislative developments this year has been the approval of the new Law of Real Estate Ownership by Non-Saudis,” said Faisal Durrani, partner and head of research for the Middle East and North Africa region at Knight Frank.
