Knight Frank highlights US$6.3bn poised for long-term opportunities despite near-term disruption.
Saudi Arabia’s real estate market remains resilient, with strong underlying fundamentals continuing to support long-term growth, according to Knight Frank’s Destination Saudi 2026 report. While regional tensions have introduced short-term caution, more than US$6.3 billion in global private capital is poised to enter the Kingdom as conditions stabilize.
Confidence is underpinned by population growth, economic expansion, and sustained inward investment. Although near-term activity may slow as investors reassess risk, demand particularly from international buyers, is expected to recover quickly once stability returns.
New law allows ownership across 170 designated areas
A pivotal milestone came in January 2026, when Saudi Arabia opened its property market to non-resident foreign investors for the first time. The new law allows ownership across 170 designated areas, unlocking opportunities in key cities including Riyadh, Jeddah, Makkah, and Madinah. Early indicators suggest strong interest, with billions already targeting residential and branded housing sectors.
Despite affordability pressures evidenced by declining transaction volumes in Riyadh, long-term demand remains significant. The capital alone is projected to require more than 305,000 additional homes by 2034, reflecting continued population growth and urban expansion.
Global investors are primarily focused on Riyadh
Global investors are primarily focused on Riyadh, followed by Jeddah and the Holy Cities, where strong cultural and religious ties continue to drive demand. However, a gap is emerging between buyer budgets and current pricing, highlighting the need for developers to align product offerings with market expectations.
Beyond residential, the retail sector is gaining momentum, driven by rising consumer spending and a shift toward experience-led destinations. Hospitality is also expanding rapidly, supported by ambitious tourism targets and growing domestic travel, while the office sector is experiencing record occupancy levels amid strong demand for Grade-A space.
Overall, Saudi Arabia’s real estate market continues to demonstrate resilience and adaptability. Backed by Vision 2030 reforms and increasing international interest, the Kingdom remains firmly positioned as one of the region’s most compelling investment destinations.
ABOUT THE SURVEY
Knight Frank’s Destination Saudi 2026 report explores the global appetite to own and invest in real estate in Saudi Arabia. Detailed interviews were carried out in partnership with YouGov and capture sentiment among expatriates currently residing in Saudi Arabia and the UAE, as well as international respondents considering real estate ownership or relocation to the Kingdom.
A total of 1,550 people were interviewed prior to the outbreak of the conflict, including 798 international respondents, 552 UAE-based expatriates and 200 Saudi-based expatriates. Collectively, they own 3,947 homes worldwide and have a combined net worth of US$ 1.16bn (excluding the value of their primary residences).
The interview sample reflects a diverse demographic profile, with 45% Muslim and 55% non-Muslim respondents, offering a balanced perspective on how Saudi Arabia’s residential landscape is viewed globally.
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