The real estate market in Saudi Arabia is undergoing a historic transformation driven by government housing programs, rising ownership rates, and increasing demand for residential units in major cities. As we enter 2025, all eyes are on the future of the real estate scene in the Kingdom, where reports expect continued growth in housing supply, amid remarkable changes in prices and real estate deals, revealing a real boom led by major cities, led by Riyadh, Jeddah and Dammam.
The real estate market in Saudi Arabia is undergoing a historic transformation, driven by government housing programs, high ownership rates, and increased demand for residential units in major cities.
Knight Frank revealed in its Saudi Arabia 2025 real estate report that the volume of housing supply in the five largest Saudi cities reached about 3.5 million housing units, with expectations that the number will rise to 3.9 million units by 2028, driven by government programs and various housing initiatives.
The report noted the pivotal role played by programs such as Wafi and Sakani in boosting the homeownership rate, with the ownership rate reaching 63.7% by the end of 2023, reflecting the success of these programs in achieving their objectives.
The report noted that the number of housing units in Saudi cities reached 3.5 million units, with the number expected to increase to 3.9 million units by 2028, driven by government programs and various housing initiatives.
Significant rise in the number and value of real estate transactions
In terms of real estate transactions, Knight Frank explained that the Saudi market witnessed a significant increase in the number of transactions during 2024 by 37% to reach 236.69 thousand transactions, while the value of transactions jumped by 27% to exceed SAR 267.8 billion, reflecting the increasing activity witnessed by the sector.
According to the report, the number of real estate transactions in 2024 increased by 37% to reach 236.69 thousand transactions, while the value of transactions jumped by 27% to exceed SAR 267.8 billion. According to the report, 88% Saudis prefer to buy residential units instead of renting them, while 60% expatriates with a monthly income of more than 30,000 riyals expressed their desire to buy units instead of renting them, reflecting a gradual change in the housing culture among residents in the Kingdom.
Riyadh. Record price jumps in apartments and villas
In Riyadh, residential prices are at record highs, driven by a growing population, internal migration to Riyadh, and continued government initiatives to support home ownership. Knight Frank estimates that the capital will need 305,000 new housing units over the next ten years just to meet the needs of citizens, with 330,000 new housing units expected to be added by 2030.
Night Frank estimates that Riyadh will need 305,000 new housing units over the next ten years just to meet the needs of citizens.
Continued price growth in 2024
Riyadh residential prices in 2024 saw continued growth, with apartment prices increasing by 10.6%, while villa prices grew by 6.3% during the same period, reflecting the continued strength of demand in the capital.
Riyadh residential prices in 2024
Jeddah. Highest growth rates in 2024
In Jeddah, the housing market during 2024 recorded the highest growth rate among major cities, as the number of residential sales increased by 53% to reach 28.07 thousand units compared to 18.3 thousand units in 2023. The value of transactions also increased by 43% over the same period.
<At the price level, apartment prices in Jeddah increased by 3.1% over the past 12 months, to reach SAR 4215 per square meter by the end of Q4 2024. On the other hand, villa prices fell by 1.7% to record 5000 SAR per square meter.
Dammam Urban. Significant growth in deals and prices
In the Dammam metropolitan area, which includes Dammam, Dhahran and Al Khobar, the real estate market witnessed remarkable growth in line with trends in Riyadh and Jeddah. The number of residential transactions increased by 49% to reach 11.28 thousand transactions, while the value of transactions grew by 44% to reach 13.5 billion riyals.
Apartment prices in the urban area of Dammam increased by 6.2% to reach 3743 riyals per square meter, while villa prices increased by 2.7% to reach 3530 riyals per square meter.
Also, prices of apartments in the urban area of Dammam increased by 6.2% to reach 3743 riyals per square meter.
Strong indicators for continued growth
Knight Frank figures confirm that the Saudi real estate market is on track for further growth and stability, driven by government housing programs, rising domestic demand, and the increasing trend towards ownership, especially in light of the rapid population growth in major cities and the continued implementation of mega housing projects aimed at meeting the growing demand.
In conclusion, it seems that the Saudi real estate market is on track for continued growth and stability. In conclusion, it seems that the Saudi real estate market is poised for further momentum and development in the coming years, as the government continues to enhance the housing environment and enable citizens to own their homes, amid dynamic changes in prices and preferences, making it one of the most vibrant real estate markets in the region.
In conclusion, the Saudi real estate market seems poised for further momentum and development in the coming years.
