Prime Highlights:
- Riyadh’s residential sales jumped 19% in Q3 2025, reaching 13,000 transactions and SR17.6 billion in sales.
- Dammam emerged as a growth hotspot, with residential transactions up nearly 60% compared to Q3 2024.
Key Facts:
- Riyadh plans to deliver 57,000 new housing units by 2026–2027 to meet rising demand.
- Despite strong quarterly growth, Riyadh sales remain 44% lower than Q3 2024 due to affordability challenges.
Background:
Saudi Arabia’s residential real estate rebounded in the third quarter of 2025, with Riyadh leading the growth, according to Cavendish Maxwell.
In Riyadh, home sales were 13,000 in Q3 2025, which is 19 per cent higher than the last quarter, and sales were SR17.6 billion (4.69 billion). Nevertheless, the sales remain 44 per cent lower compared to Q3 2024, owing to the affordability factor.
Dammam also performed well, registering 3,000 transactions, the increase being almost 60 per cent compared to Q3 2024. Its sales values in Dammam hit SR3.2 billion. Jeddah saw a 10% increase in transactions, totalling 7,500, with sales values climbing 9% to SR8.7 billion.
“Dammam’s affordability and growing investor interest are making it a new hotspot for property buyers,” said Sean Heckford, Director of Built Asset Consulting at Cavendish Maxwell. “Meanwhile, Riyadh continues to experience strong demand despite price pressures, supported by regulatory measures and new housing projects.”
Riyadh: Apartment prices rose 7.5% to SR6,160 per sq. meter; villa prices increased 10.1% to SR5,500 per sq. meter. Apartment rents climbed 11.8%, and villa rents 10.7% year-on-year.
Riyadh, Jeddah, and Dammam together delivered 13,500 new homes in the first nine months of 2025. The total deliveries will be 22,800 units at the end of the year, including 16,000 in Riyadh, 5,000 in Jeddah, and 1,800 in Dammam.
In the future, the new law of foreign ownership and White Land Tax in Saudi Arabia are likely to increase property investment. The five-year rent freeze in Riyadh is aimed at making housing more affordable but may temporarily affect landlords’ maintenance and new developments.
Heckford noted, “Saudi Arabia’s residential market is in a transitional phase. Strong fundamentals, Vision 2030 initiatives, and evolving regulations will continue to support growth, offering new investment opportunities across all major cities.”
