In a remarkable surge in the Saudi real estate market, Riyadh property sales experienced a staggering 63% increase, reaching an impressive $17.5 billion. Meanwhile, Jeddah saw a 34% rise in property sales. This surge highlights the growing momentum in the Kingdom’s residential sector, fueled by population growth and significant upcoming events, marking a pivotal shift in Saudi Arabia‘s real estate landscape.
The capital city, Riyadh, recorded a total of 35,600 transactions, reflecting a 10% increase compared to the same period in 2024. This remarkable surge in Riyadh property sales indicates robust demand and shifting dynamics in the local market.
Jeddah’s Growth in Property Sales
In Jeddah, the value of property sales between January and June reached SR18.3 billion ($4.9 billion), marking a 34% year-on-year increase. The transaction volumes in Jeddah rose by 25%, totaling 15,200 during the first half of the year, showcasing the city’s growing appeal and investment potential.
Insights from the Cavendish Maxwell Report
The findings regarding the Saudi real estate surge are outlined in Cavendish Maxwell’s KSA Residential Real Estate Market Performance report, which meticulously tracks sales prices, rental trends, and supply levels across Riyadh and Jeddah. This extensive research complements the company’s ongoing market analysis for other Gulf cities like Dubai and Abu Dhabi, emphasizing its commitment to fostering consultancy services in the Kingdom amid a nationwide transformation linked to Vision 2030.
The booming property market in Saudi Arabia is attributed to various factors, including rapid population growth, ambitious giga and mega projects, and highly anticipated global events such as Riyadh Expo 2030 and FIFA World Cup 2034, all of which are stimulating unprecedented demand in the region.
Rental Trends and Market Dynamics
As a result of the heightened demand, sales prices for apartments and villas in both Riyadh and Jeddah have witnessed notable annual increases. In Riyadh, apartment prices surged by 10.5%, while villa prices rose by 12.4% compared to the first half of 2024. By June 2025, the average price for apartments stood at SR6,100 ($1,600) per square meter, with villas commanding SR5,396 ($1,439) per square meter.
Jeddah displayed steadier growth, with apartment prices averaging SR4,376 ($1,167) and villas at SR5,114 ($1,364), reflecting increases of 1.8% and 2.5%, respectively. Rental prices mirrored this trend, as Riyadh witnessed apartment rents climbing by 10.3% and villa rents increasing by 14.4%. Conversely, Jeddah saw a slight contraction in villa rents, despite a 4.7% rise in apartment rents.
Future Development and Key Projects
Throughout the first half of the year, Riyadh and Jeddah saw the delivery of 8,100 new residential units. An anticipated 30,700 additional units are expected by December 2025, with another 72,000 projected for completion by 2027. Riyadh alone added 6,000 homes in the first half, with plans for 18,000 more this year and 48,000 by 2027, ultimately bringing the capital’s total residential inventory close to two million units by that time.
Jeddah delivered 2,100 units in the first half of the year, with 12,700 more planned for the latter half and an additional 24,000 anticipated by 2027. Key projects driving these developments include Diriyah, New Murabba, and Sedra District in Riyadh, alongside Jeddah Central and Al Arous by ROSHN, bolstered by government housing initiatives.
Sean Heckford, Director of Built Asset Consulting at Cavendish Maxwell, commented on the state of Riyadh’s property market, stating: “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.” He emphasized that this property trend serves as a catalyst for broader regional development, enhancing infrastructure, services, and overall lifestyle.
Furthermore, the introduction of a new law facilitating foreign investment in designated real estate zones starting in January 2026 is poised to further bolster demand, broadening market access. With targets set for 70% national homeownership by 2030 and various policy reforms, the landscape of Saudi real estate is undergoing a substantial transformation, aligning with the Kingdom’s Vision 2030 objectives.
As Riyadh is projected to evolve into a metropolis housing over 12 million residents by 2035, it is fortified by substantial foreign direct investments and significant projects. Meanwhile, Jeddah is striving to establish itself as Saudi Arabia’s cultural and commercial gateway, pursuing ambitious urban regeneration efforts to accommodate a population exceeding six million by 2035.