RIYADH: A recent analysis from S&P Global predicts that the market for residential real estate in Riyadh and Jeddah will continue to be strong due to population expansion, especially from expat arrivals.
According to the analysis, the residential real estate market is expected to rise by an average of 3.3% between 2024 and 2027.
Rental yields are also continuing to develop strongly; in the first half of 2024, they increased by 4% in Jeddah and 9% in Riyadh year over year. Saudi Arabia’s economy still depends heavily on residential real estate, which supports a variety of industries and accounts for around 7% of the GDP.
“To reflect our assessment of the country’s robust non-oil growth prospects and its resilience to volatile oil prices, we recently updated the outlook on our sovereign ratings for Saudi Arabia from’stable’ to ‘positive,'” the S&P report stated.
According to the government’s Vision 2030, 70% of Saudis should be homeowners by 2030. By the end of 2023, 63.7 percent of people were homeowners, according to the Ministry of Municipal and Rural Affairs. In keeping with this trend, the research also noted that mortgages and new residential units are anticipated to increase in 2024.
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