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RIYADH: ��������’s residential market recorded nearly 93,700 deals in the first half of the year, a 7 percent year-on-year increase, driven by strong mortgage activity and government support, according to Knight Frank. 

The segment accounted for 63 percent of total real estate activity in the Kingdom, with transactions valued at SR77.5 billion ($20.6 billion), the consultancy said in its latest market overview. 

This comes as ��������’s real estate market maintained steady growth in the second quarter, with overall property prices across the Kingdom rising 3.2 percent year-on-year, official data showed. Residential property costs recorded a 0.4 percent increase, according to the General Authority for Statistics. 

The performance highlights a broader surge in the Saudi real estate sector, driven by the nation’s economic diversification strategy. With the Real Estate General Authority projecting the market to reach $101.62 billion by 2029, housing has become a key pillar in the Kingdom’s Vision 2030 strategy to reduce reliance on oil. 

“One of the most significant legislative developments this year has been the approval of the new Law of Real Estate Ownership by Non-Saudis,” said Faisal Durrani, partner and head of research for the Middle East and North Africa region at Knight Frank.  

“Set to come into effect in January 2026, this new ownership framework, coupled with accelerating residential deliveries and mortgage market reforms, is expected to deepen market liquidity and improve investor sentiment,” he added. 

Knight Frank’s report pointed to diverging trends, with Riyadh showing signs of recalibration while Madinah led the nation in growth. Residential transactions in the holy city jumped 49 percent year on year to SR3.4 billion, as volumes climbed 38 percent. 

Despite a 31 percent drop in transaction volumes, Riyadh’s residential prices continued to climb. Average apartment prices in the capital increased 10.6 percent year on year in the second quarter of 2025 to SR6,175 per sq. meter, with prime central districts like Al-Taawun seeing increases of up to 32 percent. 

In contrast, Jeddah’s market gained momentum, with total transaction value increasing by 28 percent to SR17.3 billion. The city is seeing a shift in demand toward large, master-planned communities that offer integrated lifestyles. 

Looking ahead, the consultancy said that tens of thousands of new homes are due for delivery in Madinah and Makkah by 2028. Makkah’s supply is expected to grow from 428,200 units to 462,000, while Madinah is set to add 27,860 homes, bringing its total inventory to 381,200 units. 

“Large-scale government-backed projects are transforming the urban fabric of Makkah and Madinah,” said Amar Hussain, associate partner at Knight Frank. 

He added: “These developments will elevate the cities’ urban experience, strengthening their appeal to both residents and visiting pilgrims while supporting the government’s broader tourism and economic development goals.” 

The overall outlook remains positive, with strategic reforms and ongoing Vision 2030 initiatives positioning the Saudi residential sector for sustained, long-term growth. 

LONDON: Oil prices fell on Tuesday after surging nearly 2 percent in the previous session as traders monitor developments surrounding the war in Ukraine and potential disruption to Russian fuel supplies.

Brent crude was down 51 cents, or 0.7 percent, at $68.29 a barrel by 11:10 a.m. Saudi time, having hit its highest since early August in the previous session. West Texas Intermediate crude lost 57 cents, or about 0.9 percent, to $64.23.

“The modest setback today is due to risk aversion, with equity markets trading lower,” said UBS analyst Giovanni Staunovo. “Geopolitical factors are something to watch for, particularly what Trump might do if there is no meeting between Russia and Ukraine.”

Oil’s rally on Monday was primarily driven by supply risks after Ukraine strikes on Russian energy infrastructure and the possibility of further US sanctions on Russian oil.

Ukraine’s attacks in response to Russia’s advances in the conflict and its pounding of Ukrainian gas and power facilities have disrupted Moscow’s oil processing and exports and created gasoline shortages in some parts of Russia.

US President Donald Trump, meanwhile, has renewed his threat to impose sanctions on Russia if there is no progress toward a peace deal in the next two weeks.

However, sources have told Reuters that US and Russian government officials discussed several energy deals on the sidelines of this month’s negotiations seeking peace in Ukraine.

“Given the huge amount of uncertainties in the oil market caused by the Ukrainian conflict and the tariff war, investors will remain unwilling to commit themselves to either direction on a prolonged basis,” said PVM Oil Associates analyst Tamas Varga.

In the medium term, Brent prices could be bound to a trading range of $65-$74 for the foreseeable future, he added.

Looming US tariffs against India over its continued purchases of Russian oil are also in focus, said Saxo Bank commodities strategist Ole Hansen. India is the third-largest buyer of Russian crude.

Indian exports could face US duties of up to 50 percent — among the highest imposed by Washington.