Executive Summary
Saudi Arabia’s economic growth momentum is expected to mildly slowdown in 2023 after the sharp uptick in 2022 owing to the OPEC+ oil production cuts. Residential real estate transactions declined in Q1 2023. However, price in the residential segment and rents in the office and retail segment witnessed a positive trend in Q1 2023. The Saudi Arabian real estate market remains in a favorable position with stable growth in non-oil activities, a rebound in the hospitality sector, and increased government spending on infrastructure projects. The implementation of the real estate brokerage law and impending law allowing non-residents to own property is Saudi are expected to support the real estate sector growth. However, falling oil prices and rising interest rates pose some headwinds.
