The Saudi property market is witnessing significant shifts as Riyadh residential real estate sales soar to SR17.6 billion ($4.69 billion) in Q3 2025, while Jeddah stabilizes and Dammam experiences a remarkable surge. This dynamic landscape reflects the ongoing evolution in the kingdom’s real estate sector, driven by changes in economic conditions, affordability challenges, and government regulations. As property transactions gain momentum, understanding these trends becomes crucial for investors and homebuyers alike.
Riyadh’s Resilient Growth
In Riyadh, residential transactions surged to 13,000 between July and September 2025, marking an impressive 19 percent increase compared to the previous quarter. The capital is set to introduce 57,000 new homes in 2026 and 2027, according to new research from Cavendish Maxwell. The city delivered 10,000 new units in the first nine months of 2025, with an additional 6,000 anticipated in Q4, indicating a robust pipeline for future growth.
Dammam’s Emergence as a Property Hotspot
Emerging as a new focal point for investment, Dammam’s residential sales reached impressive levels, with transactions climbing to 3,000 in Q3 2025—an increase of nearly 60 percent year-on-year and 37 percent from Q2. The sales values surged to SR3.2 billion ($850 million), showcasing Dammam’s appeal to both end-users and investors. This rise is attributed to the city’s affordability, which is attracting a growing number of buyers looking for attractive investment opportunities.
Stability in Jeddah Amid Affordability Pressures
Jeddah also recorded favorable results, with transactions increasing by 10 percent to 7,500, while sales values rose 9 percent quarter-on-quarter to SR8.7 billion ($2.31 billion). Despite this quarterly boost, both Riyadh and Jeddah saw year-on-year declines in sales—44 percent and 19 percent, respectively—largely due to affordability pressures. Sean Heckford, Director of Built Asset Consulting at Cavendish Maxwell, explained, “Riyadh’s rapid price appreciation in 2024 led to sharp increases in both sales and rental prices, prompting the government to introduce a five-year rent freeze to address affordability concerns.”
Future Outlook and Market Forecast
Cavendish Maxwell’s latest research points to a promising future for the Saudi property market, with Q3 2025 sales prices for apartments and villas increasing across all three cities, particularly in Riyadh. Apartment rental rates typically reflect this upward trend; Riyadh recorded the largest increases in rental rates, with apartment rents rising by 11.8 percent year-on-year. However, Jeddah’s apartment rents saw a modest 5.6 percent rise, while villa rents dipped slightly by 2.1 percent.
Looking ahead, the regulatory landscape will play a crucial role in shaping market dynamics. The foreign ownership law, effective in January 2026, is expected to drive buyer activity, while the recently introduced White Land Tax aims to incentivize landowners to sell or develop their plots. As Heckford noted, “Saudi Arabia’s Q3 residential market performance reflects a transitional phase marked by strong macroeconomic fundamentals and evolving regulatory measures.” As the kingdom implements various Vision 2030 initiatives and infrastructure investments, the real estate market is poised for sustained growth and new opportunities across all major cities.