Strong domestic demand driving Saudi real estate
Multibillion-dollar state support will enable Saudi Arabia’s real estate sector to escape a prolonged malaise, with the kingdom’s demographics and vast spending power likely to make it the Gulf’s No.1 property market in the long term.
The Saudi Arabia Real Estate Price Index, which is approximately weighted two-thirds to residential property and one-third to commercial, slipped to an all-time low of 80.4 in the fourth quarter of 2018, data from Trading Economics shows.
The benchmark has steadily declined since late 2014 as plunging oil prices, austerity measures and new taxes and fees sapped demand for all types of real estate. But amid the gloom, industry players report an influx of consultants, lawyers and other experts from abroad as government plans to massively increase home ownership and upgrade the country’s infrastructure accelerate.