A recent report by real estate research and advisory firm JLL has revealed that the residential real estate sector in Saudi Arabia saw a strong performance in the first half of 2024, driven by government efforts to boost home ownership.

Recovery of Residential real estate in Saudi Arabia.

Recovery of residential real estate sector

JLL's report indicated that Saudi Arabia's residential real estate sector got off to a strong start during the first half of 2024, with 27.5k new residential units entering the market in the cities of Riyadh and Jeddah. Of these, 16.2 thousand units in Riyadh and 11.3 thousand units in Jeddah, raising the total housing stock in Riyadh to 1.46 million units and in Jeddah to 891 thousand units.

The report suggests that the residential real estate sector in Saudi Arabia got off to a strong start during the first half of 2024. <The report suggests that another 16,000 units will be added in both Riyadh and Jeddah during the second half of 2024. In this context, sale prices of residential properties in Riyadh increased by 10% year-on-year and average rents rose by 9%, reflecting the strength of growing demand. Jeddah recorded lower growth rates with sale prices rising by 5% and rents by 4% over the same period. <Despite high construction costs and the complexity of mega-projects, Saudi Arabia's residential real estate market is showing strong resilience, benefiting from significant government support and initiatives that facilitate access to finance and home ownership. The report noted that the sector is heading towards further expansion, especially in new areas such as Khobar city, which is witnessing increased real estate activity, where sales prices have remained stable, while rents have increased by 4% per year.

Rentals have increased by 4% per year.