RIYADH: The fundamentals underpinning Saudi Arabia’s housing market “transcend” the impact of the Iran war, a property expert has said after residential transaction volumes fell 50 percent year on year in the first quarter of 2026.
Uncertainty caused by the conflict, which began on Feb. 28, was cited as one of the factors behind the decline, along with affordability pressures and weaker mortgage activity.
Despite the softer market activity, Knight Frank said underlying housing demand remains robust, supported by population growth, rising homeownership rates and ongoing government housing initiatives.
Saudi Arabia’s property sector remains a central pillar of Vision 2030 as the Kingdom works to diversify its economy and position itself as a global tourism, investment and business hub.
“The long-term demand fundamentals underpinning the Kingdom’s housing market transcend the ongoing regional conflict,” Faisal Durrani, partner and head of research for the Middle East and North Africa at Knight Frank, told Arab News.
