CBRE Middle East released its fourth-quarter 2025 report, confirming that the Saudi real estate market is shifting from a foundation-building phase to rapid execution, with government investments focused on mega-projects such as Expo 2025.
The economy recorded positive indicators, including GDP growth of 4.8% and a 34.5% increase in foreign direct investment, alongside continued easing of inflation, reflecting the strength and stability of the economy.
Regulatory reforms—such as the foreign ownership law and the launch of the “Saudi Real Estate” digital portal—have helped attract foreign investors and boost market liquidity.
In the office sector, Riyadh reported high occupancy rates and record rents in areas such as the King Abdullah Financial District, driven by the expansion of multinational companies.
Meanwhile, the residential sector saw price stabilization with an expected increase in supply—particularly in Riyadh and Jeddah—helping to rebalance the market.
The retail sector is shifting toward mixed-use destinations that combine entertainment, luxury, and digital experiences. At the same time, the tourism sector continues to grow despite increased hotel supply, supported by major projects such as Red Sea International Airport and Six Flags Qiddiya.
The industrial and logistics sector also maintained strong performance, supported by e-commerce growth and smart infrastructure projects, with rising rents and the development of large-scale logistics assets in the Golden Triangle.
The report concluded that the Kingdom has entered a golden phase of real estate transformation, where the foundations laid in previous years are now translating into a mature and attractive property market for both local and global investors.
