A property advisory firm has outlined the current state of the Saudi Arabian real estate market following recent regional security incidents, presenting economic forecasts and transaction data amid geopolitical uncertainty.
According to Off Plan Dubai, which has operated in the GCC property market for a decade, Saudi Arabia is experiencing what it describes as a genuine short-term economic shock. The IMF’s latest forecast anticipates a 3.3% contraction in 2026, followed by a projected 7.9% rebound in 2027.
Official data from Saudi Arabia’s real estate indicators platform shows continued domestic activity. The latest Riyadh dashboard recorded approximately 16,000 transactions totalling SAR 32.3 billion, according to the firm.
Dubai market enters correction phase
The advisory firm noted that Dubai’s property market has shifted into what it terms a more selective phase. More than 13,200 homes were delivered in Q2 2026, with approximately 32,000 additional completions expected in the second half of the year.
City-wide residential prices fell approximately 4% quarter-on-quarter, while rents softened by around 6%. The firm attributed the adjustment to increased supply following five years of growth, giving buyers and tenants more options.
Long-term investment approach
The company stated its focus remains on properties with completion dates three to four years out, assessing market conditions at handover rather than short-term fluctuations. Q4 typically represents the firm’s highest-performing fiscal quarter.
The advisory approach centres on location selection, long-term positioning, and financial comfort levels for investors. The firm reported ongoing sales activity across Jeddah, Riyadh, Qatar, and Abu Dhabi.
The analysis comes as regional property markets navigate geopolitical developments alongside structural changes in supply and demand dynamics. Transaction activity and pricing trends will likely provide clearer indicators of market direction in coming quarters.
