Saudi real estate market expanding at ‘unprecedented rate,’ mortgages up 10-fold

Saudi real estate market expanding at ‘unprecedented rate,’ mortgages up 10-fold

Saudi Arabia’s real estate market experienced exponential growth with residential mortgages up ten-fold in H1 2021 compared to its corresponding financial period in 2016, according to estate consultant firm Knight Frank.

While the Kingdom celebrates its 91st National Day this year, it also marks the fifth anniversary of the Vision 2030 transformation program.

“The momentum injected into the national property market is best reflected in the fact that at over 150,000, the number of residential mortgages issued in H1 2021 is more than 10-times the level registered in H1 2016,” Head of Middle East Research at Knight Frank Faisal Durrani said.

“Clearly, the government is delivering on its pledge to improve access to world-class housing for all and is doing so in style.”

The agency has been tracking close to $1 trillion worth of real estate and infrastructure projects that were announced as part of the Kingdom’s National Transformation Plan. This figure accounts for only a third of the total $3.2 trillion of spending that is planned. As of yet, this includes eight mega-projects and new super cities.

“… In the national office markets, headline rents were clearly impacted by the pandemic, but rates for the best offices in Riyadh have recovered to pre-pandemic levels