Key findings at a glance.
Grade A office in the Diplomatic Quarter reached SAR 2,400/m² - 7-year high.
Waterfront pre-completion units appreciated 22% since Q3 2025 launches.
Phase 2 financing confirmed; private investor windows opening Q3 2026.
2026 SAGIA amendments eliminate remaining ambiguity in 14 asset classes.
Population growth and Vision 2030 targets create structural supply deficit.
Foreign investors in approved zones pay zero capital gains on exit - confirmed.
Riyadh: The Corporate Capital Surge
The mandatory HQ relocation programme - requiring all multinationals to base their regional headquarters in Riyadh by end-2024 - has created structural demand for Grade A office and executive residential that the market cannot yet supply.
- Grade A office vacancy: 5.2% (MENA record low), driving 18% rent growth YoY
- Executive residential demand up 34% - serviced apartments outperforming standard residential
- Mixed-use development: King Salman Park and Diriyah Gate anchoring two new prime submarkets
- Branded residence pipeline: Four Seasons, Ritz-Carlton and Mandarin Oriental all announced
- Recommended asset: Grade A office floors (8–11% yield) and executive serviced apartments
Jeddah: The Coastal Lifestyle Premium
Jeddah is evolving from gateway city to premium coastal lifestyle destination. The Corniche redevelopment, Al-Balad UNESCO recognition, and the Obhur Creek marina expansion are collectively repositioning Jeddah real estate in the same conversation as Dubai Marina - at 40% lower prices.
- Corniche branded residences: SAR 1.8M–4.2M, 8–9% projected yield under hotel management
- Al-Balad premium retail: heritage-certified boutique hotel conversions 85% pre-sold
- Obhur Marina: 340-berth expansion complete; marine-adjacent residential premium 28%
- Short-stay hospitality: 74% average occupancy, ADR up 31% on 2024
2026 Legal Updates for Foreign Investors
SAGIA Amendments (Jan 2026)
- 14 new asset classes added to 100% foreign ownership list
- Commercial registration time reduced from 14 days to 3 days
- Minimum capital requirement removed for most RE categories
Tax Position (Confirmed)
- 0% capital gains tax on approved investment zone exits
- Rental income: flat 15% witholding for non-resident entities
- REIT route available for institutional investors - 0% CGT confirmed
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