Retal’s direct developments portfolio grows 46% in Q2: CFO

Ammar Al-Ghoul, CFO of Retal Urban Development Co.

Retal Urban Development Co.’s (Retal) portfolio of direct development projects rose to SAR 18.7 billion during Q2 2025, a growth of 46% compared to SAR 12.9 billion in the same period a year ago, said CFO Ammar Al-Ghoul.

Speaking to Argaam, he stated that total revenue from development contracts rose 5.5% year-on-year (YoY) to SAR 475.3 million during the second quarter.

The number of available-for-sale units from direct development projects exceeds 3,600, he further stated.

The main reason for lower profits is the YoY slower pace of sales in ongoing projects. However, this decline is justified, expected, and healthy due to the market's continued scrutiny of recent regulatory decisions aimed at controlling prices and investment, according to Al-Ghoul.

Data from the Saudi Central Bank (SAMA) indicates that the Saudi real estate market is witnessing a clear slowdown in the pace of property sales, with the number of mortgage contracts falling by nearly 30% quarter-on-quarter (QoQ) in Q2 2025.

The domestic real estate market is witnessing a strategic repositioning as new regulatory frameworks are carefully assessed, he added.

Despite the climate of cautious anticipation, demand remains strong, driven by the growing need for housing and the momentum of high-quality transformational projects across the Kingdom, said Al-Ghoul.

He also noted that these dynamics reflect the shift towards a more mature and sustainable market in the medium to long term.