Data for the first quarter of 2026 showed an increase in the total assets of publicly traded real estate investment trusts (REITs) listed on the Saudi market to approximately 31.8 billion riyals, achieving year-over-year growth of 6.7% compared to the same period last year, reflecting the sector’s continued expansion and its ability to attract investments despite economic and financial challenges.
The Saudi stock market currently includes 20 publicly traded real estate funds, 19 of which are listed on the main market “TASI,” in addition to one fund listed on the parallel market “Nomu,” which enhances the diversity of options available to investors seeking exposure to the real estate sector through income-generating investment instruments.
Market Performance of REITs
In terms of market performance, the REIT sector index recorded a cumulative return of approximately 2.7% from the beginning of 2026 through mid-July, indicating the sector’s ability to achieve modest gains despite the pressures the markets have faced recently, Short-term performance indicators show that the sector faced some declines in recent weeks, with the index falling by between 1.4% and 1.6% over the past month, while maintaining relative stability over the past three months. Over the past six months, the sector managed to achieve growth ranging between 3.3% and 3.8%, reflecting a gradual improvement in fund performance compared to previous periods.
The performance of REIT funds coincided with the Saudi market’s decline last June, as the TASI index closed at 10,799.9 points, recording a monthly decline of 2.5%, amid declining performance across most sectors listed on the market.
Occupancy Exceeds 91%
In terms of operational performance, real estate assets held by REITs maintained high occupancy rates, with the average occupancy rate reaching approximately 91.2% during the first quarter of 2026, compared to approximately 92.1% during the same period in 2025.
This high occupancy rate reflects continued demand for the income-producing properties owned by the funds and their ability to generate stable operating cash flows, despite the effects of interest rates, changes in real estate asset valuations, and prevailing market conditions.
An Attractive Investment Vehicle
Real Estate Investment Trusts are among the most prominent investment channels that allow investors to benefit from returns in the real estate sector without having to purchase properties directly. These funds invest in a diverse range of assets, including high-rises, office buildings, shopping centers, educational facilities, hotels, and other income-generating properties.
REITs are also subject to regulatory requirements that mandate they distribute at least 90% of their annual net rental income to unit holders, making them a preferred choice for investors seeking a regular, recurring income.
These funds also benefit from ease of trading and liquidity, as their units are traded daily on the Saudi stock market like listed stocks, giving investors greater flexibility in managing their investments compared to direct real estate ownership.
Asset growth and sustained high occupancy rates indicate that Saudi REITs continue to maintain their investment appeal, supported by their asset diversification and ability to generate stable operating returns in a rapidly changing investment environment.
