Riyadh real estate soars as vision 2030 gains pace
Riyadh’s residential property market is surging at an unprecedented pace, with sales values in the first half of this year climbing 63 per cent year-on-year to SAR 65.7 billion ($17.5 billion), according to Cavendish Maxwell’s latest KSA Residential Market Performance report.
The Saudi capital recorded more than 35,600 transactions between January and June, around 10 per cent higher than the same period last year. Jeddah also posted sharp gains, with sales values up by a third to SAR 18.3 billion (US$4.9 billion) and transaction volumes rising 25 per cent to 15,200, as per the report. Both cities witnessed higher sales prices and rental rates, underscoring the strength of demand across Saudi Arabia’s two largest urban centres.
The surge is part of the Kingdom’s wider real estate transformation, a cornerstone of Vision 2030, which targets 70 per cent home ownership for Saudi nationals within the next five years. Analysts say the momentum is being fuelled by population growth, the draw of mega-projects, and upcoming global events such as Riyadh Expo 2030 and the FIFA World Cup in 2034.
Rising prices, rising demand
In Riyadh, apartment prices climbed by more than 10 per cent in the first half of 2025, while villa prices jumped 12 per cent compared with a year earlier. By June, apartments averaged around SAR 6,100 ($1,600) per square metre and villas SAR 5,396 ($1,439). Jeddah recorded more modest increases, with apartment prices edging up 1.8 per cent and villas 2.5 per cent.
Rental markets reflected the same pressure. Apartment rents in Riyadh surged 10.3 per cent year-on-year, while villas commanded 14.4 per cent more, a spike linked to the city’s growing population of families and professionals, and the appeal of homes near the newly launched Riyadh Metro. Jeddah’s apartment rents rose nearly five per cent, though villa rents dipped slightly.
Even with thousands of units delivered this year, supply remains tight. Riyadh added about 6,000 new homes in the first half of 2025 and is on track to complete another 18,000 by December. By 2027, a further 48,000 homes are expected in the capital, driven by giga-projects such as Diriyah, New Murabba and Sedra District.
Jeddah brought 2,100 new homes to market in the first half, with 12,700 more due before year-end and another 24,000 by 2027. Flagship projects such as Jeddah Central and Al Arous by ROSHN are reshaping the city’s waterfront and residential profile.
The government’s new foreign property ownership law, due to take effect in January 2026, is expected to open designated zones to non-Saudi investors, expanding the buyer base significantly. At the same time, the extension of the White Land Tax and the introduction of a Vacant Property Tax are designed to stimulate development and discourage speculative holding.
“These reforms will accelerate housing delivery and stabilise long-term price growth,” said Sean Heckford, Director of Built Asset Consulting at Cavendish Maxwell. “They are central to achieving Vision 2030’s goal of 70 per cent home ownership, while ensuring the market remains attractive to investors.”
Riyadh is already consolidating its position as the Kingdom’s growth engine. Anchored by the government’s Regional Headquarters programme, the city is attracting multinational firms while preparing for Expo 2030. Population projections suggest Riyadh could grow to more than 12 million residents by 2035, with its property sector expanding in parallel. Jeddah, meanwhile, is carving a complementary role as the Kingdom’s cultural and commercial gateway. Its urban regeneration and waterfront developments aim to support a population of more than six million by 2035.
This article was originally published in The Gulf Pulse.
