Real estate in Saudi Arabia maintains its investment momentum despite the repercussions of the war

The Saudi real estate market continues to strengthen its investment presence despite the geopolitical challenges that cast a shadow on a number of economic activities globally, with the Ministry of Municipalities and Housing announcing the pumping of more than 15 thousand residential plots of land through the “Sakani” platform in various regions of the Kingdom from the beginning of 2026 until the end of last October, in addition to a number of other projects pumped by private sector companies, which strengthens the role of this system and the continuation of its momentum in the current period.

The steps of the entire system aim to expand the housing supply and meet the growing demand, and reflect the continued bet on the real estate sector as it is one of the engines of economic growth and the most prominent tributaries of diversification of the national economy, benefiting from the strength of local demand and the continuation of development and urban projects, which makes it an attractive system that attracts investments from inside and outside.

In light of the current geopolitical circumstances and the challenges that war imposes on trade movement, supply chains, and financing and construction costs, the importance of the real estate sector is increasing as it is one of the sectors linked to local demand and capable of supporting the continuity of economic activity.

Despite the escalation of global economic fluctuations and geopolitical tensions, the Saudi real estate market continues to attract international investments as well, supported by clear economic policies, expanding development opportunities, and demand for housing. Arada Real Estate Development recently announced its entry into the local market through a partnership with the local Extopia, within a portfolio of lands and projects worth 50 billion riyals ($13.3 billion), launching with a residential project in the Al-Rimal neighborhood in Riyadh worth 14 billion riyals.

The Riyadh Municipality, the Ministry of Municipalities and Housing, and the National Privatization Center also recently announced the launch of the expression of interest, qualification, and submission of offers phase for the joint land investment project, to develop a plot of land within the municipality’s sector - north of the capital, in partnership with the private sector for a period of 50 years. It is the first project proposed by the Municipality within the joint investment model with the private sector.

Specialists viewed this step as an important step to enable the private sector to develop real estate assets and transform them into sustainable projects with high economic value, and that the long duration of investment encourages developers to raise the quality of construction and services, enhances the economic feasibility of projects, and also contributes to diversifying real estate products and increasing supply in one of the most expensive neighborhoods of the capital.

The importance of pumping land lies in achieving real estate balance, which is the government target announced by Crown Prince and Prime Minister Prince Mohammed bin Salman bin Abdulaziz, by increasing the housing supply by making land available that contributes to expanding the base of options for citizens, and gives a larger segment the opportunity to move from the stage of searching for housing to the stage of construction and ownership.

In this context, an increase in available land, especially in cities and governorates that are witnessing growing demand, can ease pressures on land prices in the medium term, provided that the sites and areas match the actual needs of the market.

Real estate developer Ahmed Omar Basoudan believes that the most important challenge facing the real estate market during the next stage is not only to increase the number of lands and residential units, but rather to ensure that the supply reaches the final beneficiary at prices commensurate with his purchasing capabilities, while providing the necessary infrastructure and services, and controlling development and construction costs.

Oil prices fell by more than 3 percent during trading on Monday, with growing hopes for progress in diplomatic efforts to end the war in the Middle East, after an unconfirmed media report stated that Iran was backing down from its demands related to controlling the Strait of Hormuz and imposing transit fees on ships passing through it.

The pound sterling rose against the dollar on Monday, recovering most of its losses recorded on Friday, in light of the decline in fears related to artificial intelligence stocks, which had supported the US currency at the end of last week, in addition to the decline in oil prices.

Central bank policymakers and investors continue to assess the economic fallout from the conflict and the resulting rise in energy prices. British GDP data is scheduled to be released later this week.