Experts said that the real estate sector in Saudi Arabia is heading towards recovery thanks to the implementation of expansion plans, improved operating profits, and high investment returns and revenues.
They added that the sector continues to maintain annual growth levels due to the high volume of demand, compared to the supply.
Real estate companies listed on the Saudi Stock Exchange (Tadawul) achieved a significant 258 percent jump in their net profits by the end of 2023, reaching about SAR 3 billion ($800 million) during the past year, compared to SAR 831 million ($221 million) during 2022.
In this context, the CEO of Menassat Realty Co, Khaled Almobid, said that the real estate sector in Saudi Arabia is witnessing a state of recovery in terms of price as an asset value, as well as the high demand for various real estate products.
He added that the upcoming indicators are positive, especially with expectations of a cut in interest rates during the coming period and the giant projects announced in a number of cities, as well as Riyadh’s hosting the Expo 2030 exhibition and two important football tournaments, the Asia Cup 2027 and the World Cup 2034.
For his part, Financial Analyst Tariq Al-Ateeq told Asharq Al-Awsat that the most important factors that contributed to achieving a significant jump in the profits of real estate sector companies were represented by the implementation of strong expansion plans, the increase in profit margins, and improved operating profits, as well as the high fair value gains from investment properties.
He added that the real estate market in Saudi Arabia is promising for investment and profitability, given its potential as the largest among the Gulf Cooperation Council countries.
