Saudi Arabia is expected to attract $6.3 billion in private international capital into its property sector once geopolitical tensions in the Middle East stabilize, as strong underlying demand continues to support market fundamentals, according to Knight Frank.

The report highlights population growth, business expansion, inward migration, and rising consumer confidence as key drivers sustaining the Kingdom’s real estate momentum, even as regional conflict weighs on short-term activity.

While the ongoing Iran war has impacted non-oil sectors across the Gulf Cooperation Council, Saudi Arabia continues to advance its long-term strategy to globalize its property market. Regulatory reforms, combined with favorable demographics, are reinforcing expectations of renewed foreign investor interest.

“Notwithstanding the human and economic costs of the Middle East conflict, GCC governments have moved swiftly to demonstrate a heightened level of security and resilience, showcasing their defensive capabilities to reinforce the long-term stability the region has maintained for decades,” said Faisal Durrani of Knight Frank.

He added that expatriate confidence remains anchored in decades of investment in public welfare and quality of life across the region.

Although near-term investment flows may soften as investors reassess geopolitical risks, the Kingdom’s long-term outlook remains intact. The Real Estate General Authority forecasts the market will reach $101.62 billion by 2029, growing at a compound annual growth rate of 8 percent as Saudi Arabia accelerates efforts to diversify beyond oil.

A key inflection point came on January 22, when the Kingdom opened its real estate market to non-resident foreign buyers for the first time. The move allows ownership across 170 designated zones, unlocking new opportunities in cities such as Riyadh, Jeddah, Makkah, and Madinah.

Knight Frank describes the reform as a “landmark moment” that could inject fresh capital, enhance liquidity, and attract a broader global investor base.

Demand signals are already emerging. More than half of high-net-worth individuals with assets exceeding $3 million are willing to invest upwards of $2 million in residential property in the Kingdom, while over a third of Saudi-based expatriates are targeting purchases below $500,000.

Among Saudi cities, Riyadh leads investor preference, followed by Jeddah, with Madinah and Makkah also attracting strong interest—highlighting the Kingdom’s growing appeal as a global real estate destination.