Real estate demand in Saudi Arabia to stay strong on Vision 2030: S&P

Riyadh city

Demand for real estate in Saudi Arabia will continue to be robust, supported by the Vision 2030 investments, which are expected to attract new companies and expatriates, S&P said.

The expected decrease in interest rates starting from the second half of 2024 will contribute to a revival in the demand for mortgages after the decline witnessed during 2023.

 It added that the new residency system, which supports property ownership for foreigners, will drive real estate demand, expecting significant growth in off-plan sales.

The agency added that the anticipated growth in the gross domestic product (GDP) and population growth, ranging from 2% to 3%, are incentives supporting the growth in real estate demand.

Moreover, the strong recovery in the tourism sector will contribute to supporting aviation, entertainment, hospitality sectors, and retail sales, which will further drive real estate demand.

The shortage of properties in Riyadh will continue to exert pressure on prices, limiting buyers amid rising mortgage rates, S&P added.