Riyadh property sales jump 63% to $17.5bn; Jeddah up 34% in Saudi real estate surge
Residential property sales values in Saudi Arabia’s capital, Riyadh, surged 63 per cent year-on-year to SR65.7bn ($17.5bn) in H1 2025, according to new research by Cavendish Maxwell.
The city recorded 35,600 transactions, up 10 per cent compared with the same period in 2024.
In Jeddah, sales values between January and June reached SR18.3bn ($4.9bn), a 34 per cent increase year-on-year. Transaction volumes rose by 25 per cent to 15,200 during the first half of the year.
Saudi real estate surge
The findings are published in Cavendish Maxwell’s KSA Residential Real Estate Market Performance report, which tracks sales prices, rental trends, and supply levels across Riyadh and Jeddah.
The research complements the company’s established market analyses for Dubai, Abu Dhabi, and Oman and reflects its expansion of consultancy services in the Kingdom, where a nationwide real estate transformation is under way as part of Vision 2030.
Population growth, giga and mega projects, and upcoming global events such as Riyadh Expo 2030 and FIFA World Cup 2034 are fuelling unprecedented demand.
Saudi Arabia is targeting 70 per cent home ownership among nationals by 2030, while a new law enabling foreign investment in designated real estate zones from January 2026 is expected to further lift demand.
Cavendish Maxwell noted that apartment and villa sales prices rose year-on-year in both Riyadh and Jeddah. Apartment rental rates increased in both cities, while villa rents rose in Riyadh but dipped slightly in Jeddah.
In Riyadh, apartment prices jumped 10.5 per cent and villas 12.4 per cent compared to H1 2024.
In June 2025, apartments averaged SR6,100 ($1,600) per square metre and villas SR5,396 ($1,439) per square metre.
Jeddah saw steadier growth, with apartment prices at SR4,376 ($1,167) and villas at SR5,114 ($1,364), up 1.8 per cent and 2.5 per cent respectively.
Rental prices also climbed. Riyadh apartment rents rose 10.3 per cent, with villa rents up 14.4 per cent, driven by rising family and professional relocations.
The launch of the Riyadh Metro further boosted the appeal of homes along metro lines. Jeddah saw apartment rents increase 4.7 per cent, though villa rents declined 2.7 per cent.
Between January and June, 8,100 new residential units were delivered across Riyadh and Jeddah. A further 30,700 are expected by December 2025 and an additional 72,000 by 2027.
Riyadh added 6,000 homes in H1, with 18,000 more due this year and 48,000 by 2027. The capital’s total residential inventory is set to reach nearly two million units by then, compared with 1.92m as of June 2025.
Jeddah delivered 2,100 units in H1, with 12,700 more forecast in H2 and another 24,000 by 2027. The city’s inventory will grow from 1.09m units today to 1.13m by the end of 2027.
Key projects underpinning supply include Diriyah, New Murabba and Sedra District in Riyadh, and Jeddah Central and Al Arous by ROSHN in Jeddah, alongside government housing initiatives.
Sean Heckford, Director of Built Asset Consulting at Cavendish Maxwell, said: “The unprecedented growth of KSA’s residential sector reflects a deeper story: a region balancing tradition with modernity, where investment fuels progress while retaining the country’s charm and culture.
“More than just a property trend, this is a catalyst for regional development, driving improvements in infrastructure, services and lifestyle.
“Policy reforms are also transforming the Kingdom’s real estate landscape. Under the new foreign property ownership law, non-Saudi’s will be able own property in designated areas, significantly broadening market access, while the increased White Land Tax and Vacant Property Tax should stimulate supply, discourage speculative holding, and promote more efficient land use.
“These measures are expected to accelerate housing delivery, stabilise long-term price growth, and reinforce the Kingdom’s Vision 2030 objectives, which include 70 per cent home ownership in the next five years.”
Heckford added that Riyadh is set to evolve into a city of more than 12m people by 2035, supported by foreign direct investment, giga projects, and the Government’s Regional Headquarters (RHQ) programme.
Jeddah, meanwhile, is positioning itself as Saudi Arabia’s cultural and commercial gateway, pursuing ambitious waterfront and urban regeneration projects to support a population of more than six million by 2035.
This article was originally published in Arabian Business.
