Saudi Arabia’s residential real estate market is showing signs of increasing maturity, with urban centres across the Kingdom posting sharp gains in rental rates and varied transactional activity, according to the latest JLL KSA Living Market Dynamics report for Q2 2025.
The findings point to a housing sector shaped by Vision 2030 urban development projects, population growth, economic diversification, and government-led home ownership initiatives.
Demand is also being driven by a growing preference for affordable apartment living and master-planned communities offering integrated lifestyles.
Saudi real estate foreign ownership law
Saud Al Sulaimani, Country Lead and Head of Capital Markets at JLL Saudi Arabia, said: “The Saudi Arabian residential market is maturing, reflecting a dynamic landscape driven by the Kingdom’s broader objectives to meet end-user needs.
“While ongoing government initiatives have led to strong underlying demand, the sector is poised for further evolution and diversification, catalysed by the upcoming foreign ownership law to be implemented in January 2026.
“This legislation is expected to invigorate the sector and boost real estate supply, attracting international developers and investors to the Saudi market, thereby opening a broader range of opportunities for all stakeholders across the Kingdom.”
Riyadh continued to show strong momentum in Q2 2025:
- Villa prices up 15.1 per cent year-on-year
- Apartment prices up 13.3 per cent
- Villa rents rose 13.9 per cent, while apartment rents gained 6.9 per cent
In Jeddah, performance was mixed:
- Villa prices up 4.4 per cent
- Apartment prices down 3 per cent
- Apartment rents up 2.4 per cent
- Villa rents down 2.8 per cent
The Dammam Metropolitan Area (DMA), including Dammam, Al Khobar and Jubail, saw continued demand for high-end waterfront homes.
Al Khobar’s apartment prices rose 5.8 per cent and villa prices 2.2 per cent, while Dammam apartments remained stable and villa prices edged up 1.8 per cent.
Market activity diverged across regions:
- Riyadh: 2,758 total transactions (down 1.5 per cent year-on-year); apartments made up 81.3 per cent, with An Narjis leading apartment sales (21.9 per cent)
- Jeddah: Transactions surged 46.1 per cent to 1,100; Al Marwah dominated apartment deals (26.1 per cent), Ar Rawdah led villa sales (17 per cent)
- Al Khobar: Transactions up 23.7 per cent
- Dammam: Transactions down 6.7 per cent; apartments remained the majority
Supply outlook
- Riyadh: Residential stock reached 2.17m units in H1 2025, with 5,600 new units delivered and another 18,900 expected by year-end
- Jeddah: Stock climbed to 1.23m units, with 8,640 more units scheduled for delivery in 2025
- DMA: Existing supply concentrated near the coast, with future stock set to expand inland and southward
In Riyadh and Jeddah, new supply is increasingly tied to master-planned communities, with developers focusing on apartment living and modern amenities such as gyms and parking facilities.
The report underlines a market in transition, as Saudi Arabia balances affordability, lifestyle shifts, and investor appetite, positioning the sector for sustained growth under Vision 2030.
