Leading real estate consultancy and property consultant Cavendish Maxwell reports that residential property sales values in Saudi Arabia’s capital, Riyadh, have increased 63% year over year to SAR65.7 billion ($17.5 billion) in the first half of this year.
In H1 of this year, the city registered 35,600 sales transactions, a 10% increase over the same time in 2024.
According to the corporation, sales in Jeddah between January and June of this year totaled SAR18.3 billion ($4.9 billion), which is 34% more than the same period last year. Transactions also increased by a quarter (25%) to 15,200.
Cavendish Maxwell’s KSA Residential Real Estate Market Performance report, which was released on Monday, also showed that both Riyadh and Jeddah saw increases in sales prices and rental rates year over year.
As the company grows its consulting services in Saudi Arabia, where a statewide real estate change is underway as part of Vision 2030, the research complements Cavendish Maxwell’s frequent, reliable market studies for Dubai, Abu Dhabi, and Oman.
Due to the Kingdom’s growing population and impending events like the FIFA World Cup 2034 and Riyadh Expo 2030, demand for real estate is at an all-time high. According to Cavendish Maxwell, the country wants 70% of Saudi citizens to buy a home by 2030, and the new regulation that permits foreigners to invest in real estate in specific zones would increase demand even more when it takes effect in January 2026.
The paper also demonstrates the following, with a focus on Riyadh and Jeddah and a broader analysis for KSA planned for future market studies:
- In H1 2025, the prices of apartments and villas sold in both cities increased annually.
- Both regions saw increases in apartment rental prices. Villa rentals went up in Riyadh as well, although they went down a little in Jeddah.
- Between January and June of this year, 8,100 new residential units were delivered in the two cities; by December 2025, another 30,700 are anticipated, and by 2027, an additional 72,000.
- Riyadh and Jeddah are home to more than a third (33.4%) of the KSA’s population, which is expected to reach 38 million by the end of the year.
- Nearly half (45%) of Saudi Arabia’s population is made up of foreigners.
By 2027, 48,000 of the 72,000 additional units that are scheduled to be delivered in Riyadh and Jeddah will be in Riyadh, where major giga and mega projects like Diriyah, additional Murabba, and Sedra District will greatly increase the city’s housing supply. The residential offering in Jeddah is being progressively reshaped by significant developments like Jeddah Central, Al Arous by ROSHN, and government housing initiatives.
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.”
Prices for apartments and villas in Riyadh increased by 10.5% and 12.4%, respectively, over H1 of the previous year. Apartments and villas averaged SAR6,100 ($1,600) and SAR5,396 ($1,439) per square meter in June 2025. In Jeddah, prices increased slightly but steadily, up 1.8% and 2.5% year over year for apartments and villas, respectively, at SAR4,376 ($1,167) and SAR5,114 ($1,364) per square meter.
Rates for rentals
According to Cavendish Maxwell, the reason for the 10.3% annual increase in rental prices for apartments in Riyadh and the 14.4% increase in rent for villas is the ongoing migration of professionals and families to the Saudi capital in search of better job opportunities and a higher standard of living.
Homes close to metro lines become more appealing with the opening of the Riyadh Metro. Apartment rental prices in Jeddah increased 4.7%, while villa rental prices decreased 2.7%.
Delivery by 2025 and later
Approximately 6,000 additional residences were supplied by Riyadh in the first half of 2025, and an additional 18,000 are expected to be completed in the second half of the year. By 2027, a further 48,000 new properties are anticipated, bringing the total supply of residential real estate in the city to an estimated 1,995,000. The total inventory in Riyadh as of June 2025 was 1,922,000.
In H1, Jeddah added 2,100 new units to its inventory; by 2027, another 24,000 will have been added, and another 12,700 will be added this year. By the end of 2027, Jeddah’s present supply of 1,092,000 units is expected to increase to 1,131,000.
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.”
