Saudi property market on uptrend; Al Akaria targets housing projects: Acting CEO

Khaled Al-Suhaibani, Acting CEO of Saudi Real Estate Co. (Al Akaria)

Saudi Real Estate Co. (Al Akaria) is advancing high-quality developments that offer attractive investment opportunities, backed by strong governance and a competitive business environment aligned with Saudi Vision 2030, Acting CEO Khalid Alsehaibny told Argaam.

Speaking on the sidelines of the Saudi Capital Markets Forum, he noted that Saudi Arabia’s real estate market is seeing sustained growth, driven by government initiatives that boost demand for residential and commercial projects.

Despite global economic challenges like inflation and interest rate volatility, the market remains resilient. Strong demand and regulatory reforms continue to support property ownership and investment.

Alsehaibny expects continued growth in the residential sector, especially for integrated housing solutions that enhance quality of life. Commercial projects are also in high demand, aligning with urban development plans and business environment improvements.

The company closely monitors market shifts to ensure its projects meet investor and end-user needs while delivering sustainable returns for shareholders.

Recent asset divestments generated SAR 85.64 million from selling two land plots in Riyadh and Madinah, and SAR 145.15 million from 17 plots in Riyadh.

These sales align with Al Akaria’s 2023 strategy to optimize asset management and maximize shareholder value. The company is reallocating capital from non-core land holdings to higher-value developments.

Al Akaria is focusing on premium residential projects. Sidra 1, with 138 units, is set for completion in Q1 2026. Sidra 2, a 310-unit project, is in the contractor selection stage and is scheduled for completion by the end of 2027.

Other projects include Al Reef Residential in Riyadh’s Diplomatic Quarter, covering 39,000 square meters and set for completion in 2026. The Tilal Riyadh development in Al Malqa, spanning 22,000 square meters, is also scheduled for 2026.

The company is finalizing designs and selecting contractors for new projects across various segments. These include the Narjis Office Project on Al Thumama Road in Riyadh and the Porta Jeddah mixed-use development, which will be managed by Canopy by Hilton.

Foreign investors currently hold about 5% of Al Akaria’s shares. The company aims to expand its investor base and maintain high transparency to attract further investment.