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Tag: Saudi Vision 2030

  • Dammam Leads Saudi Real Estate with 71% Sales Surge

    Dammam Leads Saudi Real Estate with 71% Sales Surge

    Dammam has emerged as the standout performer in Saudi Arabia’s residential real estate sector during the first quarter of 2026, with quarterly sales values surging 71 percent to SAR3.6 billion ($957 million), according to new data from Cavendish Maxwell.

    Around 2,900 homes changed hands in Dammam from January to March this year, marking a 41 percent increase on the previous quarter, when sales values stood at SAR2.1 billion. Compared to the same period in 2025, sales volumes in the Eastern Province city rose 25 percent, with transaction values up 48 percent.

    March 2026 delivered the strongest monthly performance, with 1,265 transactions recorded despite ongoing regional tensions—a sign of the housing sector’s resilience in Dammam.

    “While the potential implications of the regional geopolitical situation remain closely monitored by market participants, it is still too early to draw definitive conclusions,” said Kevin Duffield, Director of Built Asset Consulting at Cavendish Maxwell. “Saudi Arabia’s residential market remains supported by strong domestic demand, with a predominantly local buyer base providing a degree of resilience against short-term external shocks.”

    Riyadh and Jeddah show mixed performance

    Riyadh posted a quarterly rise in transaction volumes and values, with 8,800 sales worth SAR13.4 billion in Q1 2026—an increase of nearly 12 percent in volume and more than 4 percent in value against the final quarter of 2025.

    However, the capital’s year-on-year figures tell a different story. Sales volumes dropped 64 percent compared to Q1 2025, with values down 72 percent, reflecting a normalization following elevated activity in late 2024 and early 2025. Higher financing costs, affordability constraints, Ramadan, Eid, and regional uncertainty also weighed on Riyadh’s Q1 performance.

    Jeddah saw activity moderate further, with sales declining 25 percent compared to Q4 2025 and around 30 percent year-on-year. Investors spent SAR7.2 billion across 5,800 transactions in the first three months of the year.

    Prices and rents stabilizing across major cities

    While real estate sales prices and rental rates across Riyadh, Jeddah, and Dammam increased year-on-year, the pace of growth is beginning to moderate, with little or no change compared to the fourth quarter of 2025.

    In Riyadh, apartment sales prices averaged SAR6,200 per square meter in Q1, up 3.7 percent year-on-year, while villas climbed nearly 7 percent to SAR5,700 per square meter. Prices for both property types remained broadly flat quarter-on-quarter.

    In Jeddah, the cost of apartments rose nearly 2 percent year-on-year and 1.3 percent quarter-on-quarter to SAR4,400 per square meter, with villa prices reaching SAR5,200 per square meter. In Dammam, apartment prices increased 4 percent annually, with villas up more than 2 percent, though both remained stable compared to Q4 2025.

    Rental rates also rose compared to a year ago but moderated in Q1 relative to the previous quarter. In Riyadh, apartment rents increased nearly 6 percent and villas more than 5 percent year-on-year, but declined 2.8 percent and 1.2 percent respectively quarter-on-quarter—partly due to the rent freeze introduced in September and new residential supply entering the market.

    In Jeddah, apartment rents were up 2.7 percent and villas nearly 1 percent compared to Q1 2025, with a softening against the previous quarter. In Dammam, rents rose 3.2 percent year-on-year for apartments and 2.1 percent for villas.

    Major supply pipeline ahead for Riyadh

    Riyadh delivered almost 3,000 new residential units in Q1 this year, bringing the capital’s residential stock to around 1.94 million. Another 31,000 units are due to come to market by the end of the year, with an additional 61,500 by the end of 2028, by which time Riyadh’s total residential inventory will reach 2.03 million.

    Jeddah now has around 1.1 million units following the delivery of 1,500 new homes in Q1. With 17,500 more in the pipeline this year and nearly 46,000 over the next two years, Jeddah’s residential stock is set to exceed 1.16 million by 2028.

    In Dammam, 4,800 new homes are expected to be delivered in 2026, bringing the city’s inventory to 435,000. Handovers will accelerate in 2027, when 10,600 units are scheduled for completion, with another 3,500 slated for 2028.

    “Development pipelines are evolving across each city, with Riyadh seeing the most new supply in the medium term, and growth in Jeddah and Dammam more modest and measured,” said Duffield. “Collectively, this expanding pipeline is expected to play an increasing role in shaping market dynamics and gradually improving the balance between supply and demand.”

    Foreign ownership framework brings new opportunities

    Saudi Arabia’s new foreign ownership law, introduced in January 2026, now allows non-Saudi individuals and companies to invest in the country’s real estate market.

    “Recently approved geographical zones in which the new rules apply bring greater clarity on where investors can buy,” Duffield noted. “The long-term impact on sales numbers and pricing will depend on the level of non-Saudi demand, the types of projects located within the designated areas, and how quickly the supporting regulatory framework is implemented over the next few years.”

    In Riyadh, designated locations for foreign ownership include new urban developments such as Qiddiya, New Murabba, and King Abdullah Financial District, while Jeddah has more than 55 zones open to non-Saudi investors. Several other giga-projects and Special Economic Zones, including NEOM, The Red Sea Project, Amaala, AlUla, and King Abdullah Economic City, also fall within the approved framework.

    “Overall, while short-term market activity is expected to remain influenced by affordability constraints, financing conditions, and external uncertainty, the medium-term outlook for Saudi Arabia’s residential sector remains supported by population growth, sustained government investment, and ongoing economic diversification,” Duffield added.

  • Saudi Giga Projects Redefine Urban Planning, Says AtkinsRéalis CEO

    Saudi Giga Projects Redefine Urban Planning, Says AtkinsRéalis CEO

    The Gulf region is undergoing one of the world’s most ambitious infrastructure investment cycles, but according to Campbell Gray, CEO of AtkinsRéalis Middle East, the defining characteristic is no longer magnitude—it’s maturity.

    Over the past five years, the region has transitioned from delivering landmark projects to constructing integrated systems designed to support long-term economic transformation. Saudi Arabia’s giga projects exemplify this evolution, redefining city-making rather than simply expanding it.

    “In recent years, the region has shifted from delivering individual projects to building fully integrated systems and approaches that support long-term economic transformation. National visions now provide a clear sense of direction, aligning investment, delivery models, and expected outcomes,”

    Gray explains.

    From Standalone Projects to Urban Ecosystems

    Giga projects across Saudi Arabia and the UAE are now conceived as interconnected ecosystems, raising expectations for integration, governance, and delivery discipline. Sustainability has become a baseline requirement, and digital tools now anchor how risk, sequencing, and performance are managed.

    “The key difference now is the necessity for clearly defined brief and basis of design leading to a development investment that provides a demonstrable and tangible return,”

    Gray says.

    This emphasis on measurable outcomes marks a departure from earlier rapid-growth phases. Governments and developers now prioritize front-end clarity, lifecycle performance, and return on investment over project completion timelines alone.

    The region’s accelerated localization agenda is reshaping procurement and supply chains, creating clearer pathways for national participation. These changes signal a more mature development environment increasingly focused on measurable results rather than activity alone.

    Redefining City-Making in Saudi Arabia

    While Saudi Arabia’s giga projects are frequently discussed in terms of scale, Gray argues their real impact lies in how they are redefining urban planning fundamentals.

    “These programmes reflect a deeper understanding that cities are dynamic systems that have evolved over decades. Planning now begins with how people will move, live, work, and interact with their environment, as well as how places will perform socially and environmentally over time,”

    he notes.

    This systemic approach influences mixed-use design, mobility integration, and long-term asset stewardship. Development companies are increasingly structured as long-term custodians rather than short-term delivery entities.

    Digital integration has become essential, enabling thousands of decisions and interfaces to be managed with clarity and consistency. Once operational, these cities rely on real-time data to optimize energy use, transport, and public services, creating urban environments that adapt to changing needs and continue generating value long after construction completes.

    Industrialized construction methods, local manufacturing investment, and performance-driven commercial frameworks are becoming standard delivery model features.

    Economic Diversification Drives New Demands

    Economic diversification across the Gulf is creating new asset classes, from cultural districts to innovation hubs, reshaping demand for engineering and advisory services.

    “Diversification is driving a clear shift toward integrated and multidisciplinary thinking. Cultural districts, innovation hubs and creative clusters need planning, engineering, mobility, landscape, digital and ESG considerations to be shaped as a single coherent strategy rather than separate workstreams,”

    Gray says.

    He highlights the growing importance of upstream advisory work, noting that clients now require technical advisory expertise upfront to ensure vision can be matched in delivery around return on investment, quality, cost, and program.

    Saudi Arabia’s SAR81 billion commitment to cultural infrastructure underscores this shift, with culture targeted to contribute approximately 3% to GDP. Consultants are increasingly expected to stay engaged across the full asset lifecycle, connecting policy ambition with delivery discipline.

    Sustainability as Baseline Expectation

    Sustainability in the Gulf is no longer a differentiator—it’s a baseline expectation. However, the definition has evolved significantly.

    “Sustainability is now viewed through the lens of long-term resilience. Clients want assets that reduce emissions, manage climate risks, and maintain strong performance over many decades,”

    Gray explains.

    Whole-life carbon analysis, circularity, water efficiency, and extreme heat adaptation are now embedded in project briefs from the outset. Nature-based solutions are gaining traction alongside engineered resilience measures.

    Importantly, performance is increasingly evaluated during operation, not just at handover, showing how deeply sustainability is now embedded in everyday decision-making.

    Speed with Discipline

    While the Gulf remains known for pace, Gray believes the narrative has shifted from speed at any cost to speed with discipline.

    “The region has moved beyond the mentality of building fast at any cost. The prevailing approach now is to build fast while safeguarding long-term value,”

    he says.

    Front-end planning, scenario modeling, and closer contractor collaboration are becoming essential. A key development is much closer working relationships with contractors and clients, adopting a joint problem-solving approach.

    However, challenges remain. Governments are increasingly assessing projects based on whole-life value rather than upfront cost or delivery timelines alone, though Gray notes this approach is still immature, and lowest cost often still wins, which rarely creates value for money.

    Digital assurance tools are playing a crucial role in managing complexity at scale, offering real-time risk visibility while maintaining quality and resilience.

    Digital Tools Reshape Decision-Making

    Across the built environment, digital technology is fundamentally reshaping how decisions are made and assets are managed. Digital twins and advanced modeling enable teams to test scenarios and understand impacts well before construction begins.

    AI-enabled delivery tools are enhancing predictability and productivity, while integrated data platforms allow urban systems—energy, mobility, and public services—to be managed proactively.

    This shift from project-level decision-making to system-level planning is creating more resilient, efficient cities and enabling governments to allocate resources with far greater confidence.

    Setting Regional Benchmarks

    Gulf cities continue to draw on global best practices, particularly in transit-oriented development and low-carbon planning. However, the region is increasingly setting its own benchmarks through the pace and scale of implementation.

    “The focus has shifted from iconic individual assets to integrated citywide strategies that connect land use, mobility, climate resilience, and quality of life,”

    Gray notes.

    Major waterfront regeneration projects, heritage districts, and large-scale public realm initiatives demonstrate how global expertise can be adapted to local ambition, similar to emerging master-planned developments across the region.

    Future Focus: Systems Over Projects

    Looking ahead, Gray believes the next phase of growth will center on systems that support diversified, knowledge-based economies.

    Green and resilient infrastructure will be essential as populations expand and climate pressures intensify. Social infrastructure and mixed-use districts will play central roles in developing talent and strengthening quality of life.

    Mass transit will play a defining role. With rapid population growth, how people move around cities will significantly impact how they work, play, and live—a fundamental consideration for regional developers. For the first time, commuter times will play a much bigger part in where and how residents spend their time.

    The emphasis on logistics and industrial infrastructure will reinforce the Gulf’s role as a global trade and innovation hub, while experience-led cultural destinations emerge as critical pillars of diversification.

    Across all sectors, a consistent theme is emerging: the focus will be on long-term performance, integration, and value creation rather than short-term delivery milestones, reflecting broader trends in GCC real estate market evolution.

    For the Gulf’s built environment, scale remains impressive. But maturity, not magnitude, is increasingly the defining characteristic of this infrastructure cycle.