Residential property sales values in Saudi Arabia’s capital Riyadh have surged 63% year-on-year to SAR65.7 billion ($17.5 billion) in the first half of this year, says leading real estate advisory and property consultant, Cavendish Maxwell.
The city recorded 35,600 sales transactions in H1 this year – an increase of 10% on the same period in 2024.
In Jeddah, sales values between January and June this year reached SAR18.3 billion ($4.9 billion), 34% up on last year, with transactions climbing by a quarter (25%) to 15,200, the company said.
Sales prices and rental rates were also up year-on-year in both Riyadh and Jeddah according to Cavendish Maxwell’s KSA Residential Real Estate Market Performance report, published on Monday.
The research, which complements Cavendish Maxwell’s regular, trusted market analyses for Dubai, Abu Dhabi and Oman, comes as the company expands its consultancy services in KSA, where a nationwide real estate transformation is under way as part of Vision 2030.
Demand for real estate in the Kingdom, fuelled by population growth and upcoming events like Riyadh Expo 2030 and FIFA World Cup 2034, is at unprecedented levels. The country is targeting 70% home ownership among Saudi nationals by 2030, and the new law allowing foreigners to invest in real estate in certain zones, which comes into effect in January 2026, will further heighten demand, Cavendish Maxwell says.
Focusing on Riyadh and Jeddah, with a wider analysis for KSA planned for future market studies, the report also shows:
• Apartment and villas sales prices in both cities rose year-on-year in H1 2025
• Apartment rental rates rose in both areas. In Riyadh, villa rents also increased, but saw a slight decline in Jeddah
• 8,100 new residential units were delivered across the two cities between January and June this year, with another 30,700 more expected by December 2025 – and an additional 72,000 by 2027
• More than a third (33.4%) of KSA’s population – projected to surpass 38 million by the end of the year – is in Riyadh and Jeddah
• Expats account for nearly half (45%) of KSA’s population
72,000 new units are set for delivery across Riyadh and Jeddah by 2027, with 48,000 of them in Riyadh, where key giga and mega projects like Diriyah, New Murabba and Sedra District will significantly contribute to the city’s housing supply. In Jeddah, major developments such as Jeddah Central, Al Arous by ROSHN and Government housing initiatives are gradually reshaping the city’s residential offering.
Riyadh-based 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% home ownership in the next five years.”
In Riyadh, apartment prices jumped 10.5% and villas 12.4% compared to H1 last year. In June 2025, apartments averaged SAR6,100 ($1,600) and villas SAR5,396 ($1,439) per square metre. There was modest but steady price growth in Jeddah: SAR4,376 ($1,167) per sqm for apartments and SAR5,114 ($1,364) for villas, a year-on-year rise of 1.8% and 2.5% respectively.
Rental rates
Rental prices for apartments in Riyadh rose 10.3% year-on-year, with villas commanding 14.4% more in rent – the result of continued growth in families and professionals moving to the Saudi capital for employment and enhanced quality of life, Cavendish Maxwell said. The launch of the Riyadh Metro also boosted the appeal of homes near metro lines. In Jeddah, apartment rental rates rose 4.7%, but there was a drop of 2.7% for villas.
Delivery in 2025 and beyond
Riyadh delivered around 6,000 new homes in the first half of 2025, with 18,000 more expected to come to market in H2. Another 48,000 new properties are projected by 2027, by which time the capital’s total residential real estate supply will reach an estimated 1,995,000. As of June 2025, Riyadh’s inventory stood at 1,922,000.
Jeddah added 2,100 new units to its inventory in H1, with 12,700 more on the way this year and an additional 24,000 by 2027. Jeddah’s currently supply of 1,092,000 units is set to grow to 1,131,000 by the end of 2027.
Sean Heckford added: “As KSA continues to diversify its economy and increase non-oil GDP, Riyadh and Jeddah – and their real estate sectors – will play increasingly pivotal roles in helping to realise the country’s vision. Riyadh is already firmly established as the Kingdom’s primary growth engine, reinforced by the Government’s Regional Headquarters (RHQ) programme, which is attracting multinational firms to the capital, giga projects like New Murabba and Diriyah, and Expo 2030. With rising levels of foreign direct investment also supporting the city’s diversification, Riyadh is set to evolve into a thriving hub of over 12 million people by 2035, and its property sector is set to expand in parallel with its economic and demographic growth.
“Meanwhile, Jeddah is carving out a complementary role, leveraging its position as KSA’s commercial gateway. The city is building on its cultural heritage and pursuing ambitious urban and waterfront developments to support a projected population of over 6 million by 2035.” -TradeArabia News Service
