Jadwa: Saudi real estate activities contribute 9.9% of Non-Oil GDP

A report from Jadwa Investment says that real estate sector contributes 9.9% of Saudi non-oil gross domestic product (GDP). The sector rose by 6.6% (YoY) in the first nine months of 2021.

Jadwa predicts the realty sector will keep growing in 2022 thanks to “Sakani” program launched by Ministry of Municipal & Rural Affairs & Housing. Despite of expected raising the proportion of residential ownership to 70% by 2030, mortgage prices may not necessarily grow (YoY).

The report estimates that real estate prices will hike in Saudi market which will probably make residential detached and semi-detached villas’ cost higher. This will be a result of expected population growth especially in main cities in the kingdom, for example, population in Riyadh is expected to double to at least 15 million people by end of the current decade.

Jadwa sees the realty sector benefited from traded real estate funds (REITs) which grew 8% in 2021. Also, total mortgage loans rose by 1% to SR 156 billion in 2021 (YoY).