Economics and real estate. A relationship that builds the future brick by brick. Brick by brick

Architect Dr. Hisham Alqasem

Real estate is not just a sector separate from the economy, it is its most visible mirror. When economic indicators rebound, this is directly reflected in the movement of the real estate market, and vice versa; real estate becomes the first to feel any slowdown in growth or volatility in liquidity.
In Saudi Arabia, which is undergoing an unprecedented economic transformation under Vision 2030, the real estate market has become a real observatory to measure the pulse of the non-oil economy. Every improvement in non-oil GDP - which grew by more than 4.5TP3T in the first half of 2024, according to the General Authority for Statistics - is matched by a rise in demand for residential and commercial units, driven by the expansion of service activities and the rising purchasing power of individuals.

Unemployment indicators and disposable income are directly related to the ability of citizens to own and invest, and with the decline in unemployment rates to about 7.7% and the increased participation of women in the labor market, the number of beneficiaries of real estate financing programs increased, and the demand for integrated housing projects increased.
Inflation is one of the most influential factors in real estate prices. While the rising cost of living and building materials are driving up prices, the stabilization of inflation rates at 2% in 2024 has boosted investor confidence and construction rates in major cities.
The role of liquidity and consumer confidence cannot be overlooked. When bank liquidity and loan appetite are high, the market is buoyant. If confidence drops or interest rates rise, investment decisions slow down. Perhaps the biggest challenge for the market today is to balance growth with sustainability, so that real estate remains a supportive sector for the economy rather than a burden. In the end, real estate is the tangible reflection of the economy. The buildings that are built, and the neighborhoods that thrive, are only a reflection of the performance of economic indicators. The better those indicators improve, the more solid the foundation of the Saudi real estate market will be, making it one of the most stable and growing markets in the region.

Real estate is a reflection of the economy.

@ArchHesham