- Riyadh’s residential sales values surged 63% (YoY) to SAR 65.7 billion or $17.5 billion in H1 2025, with 35,600 transactions, up 10% from 2024.
- Jeddah saw a 34% increase in sales values to SAR18.3 billion or $4.9 billion, with transactions rising 25% to 15,200.
- Upcoming policy reforms, including foreign property ownership starting January 2026, are expected to boost demand.
Riyadh’s residential property market has seen a remarkable 63% year-on-year increase in sales values, reaching SAR65.7 billion (US$17.5 billion) in the first half of 2025, according to Cavendish Maxwell’s KSA Residential Real Estate Market Performance report. The capital recorded 35,600 transactions, a 10% rise from 2024. Jeddah also experienced strong growth, with sales values up 34% to SAR18.3 billion or $4.9 billion and transactions climbing 25% to 15,200.
Prices across segments rise
Both cities saw rising sales prices and apartment rental rates. In Riyadh, apartment prices jumped 10.5% to SAR6,100 or $1,600 per square meter, while villa prices rose 12.4%. Jeddah’s apartment and villa prices increased modestly by 1.8% and 2.5%, respectively. Apartment rents in Riyadh rose 10.3%, driven by demand from families and professionals, boosted by the Riyadh Metro’s launch. Jeddah’s apartment rents grew 4.7%, though villa rents dipped slightly by 2.7%.
Opening up KSA’s property market
The Kingdom’s real estate boom aligns with Vision 2030, aiming for 70% homeownership by 2030. Demand for real estate in the Kingdom is fuelled by population growth and upcoming events like Riyadh Expo 2030 and FIFA World Cup 2034. The country is also planning a new law that allows foreigners to invest in real estate in certain zones. Expats account for nearly half (45%) of KSA’s population.
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“The unprecedented growth of KSA’s residential sector reflects a region balancing tradition with modernity,” said Sean Heckford, Director of Built Asset Consulting at Cavendish Maxwell. “More than just a property trend, this is a catalyst for regional development, driving improvements in infrastructure, services, and lifestyle,” he added.
Riyadh and Jeddah are set to deliver 72,000 new residential units by 2027, with major projects like Diriyah and New Murabba in Riyadh and Jeddah Central transforming the housing landscape. With 33.4% of Saudi Arabia’s population in these cities and events like Riyadh Expo 2030 approaching, the real estate sector is poised for sustained growth, supporting the Kingdom’s economic diversification.
