Real estate experts expect the construction sector in Saudi Arabia to maintain its growth momentum, despite heavy pressure from low crude oil prices. The sector is expected to grow by 7.8% from 2015-2019, driven by mega projects in the holy cities of Makkah and Medina, according to recent reports and studies.

Real estate experts have predicted that Saudi Arabia's construction sector will maintain its growth momentum, despite the heavy pressures of low crude oil prices.

Furthermore, major infrastructure projects such as: railroad and road projects, as well as the continued high demand for homes, are driving the construction sector. According to a study conducted by Allen Capital Advisory & Financial Services, the Saudi government's efforts to promote religious tourism and growth in the hospitality and retail industries will lead to more construction activities in the near future.

According to a study conducted by Allen Capital Advisory & Financial Services.

The study also indicates that infrastructure projects to be implemented between 2015 and 2019 at a cost of $180 billion will be the main driver of construction activities. Despite Saudi Arabia's rapidly growing population, only 30 percent of Saudis are homeowners, meaning the supply is insufficient to meet demand. Therefore, there is a need to build 200,000 homes per year until 2019.

PDF of the study.