Saudi Arabia's real estate market 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 landscape in the Kingdom, with reports predicting continued growth in Housing supplyAmid remarkable changes in prices and real estate deals, the figures reveal a real boom led by major cities, led by Riyadh, Jeddah and Dammam.
and revealed Knight Frank In its Real Estate Report on the Saudi Market 2025, the volume of housing supply in the five largest Saudi cities reached about 3.5 million housing units, with the number expected to 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, which reached 63.7% by the end of 2023, an indicator that reflects the success of these programs in achieving their goals.
Significant increase in the number and value of real estate transactions
At the level of Real estate dealsKnight 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 increased activity witnessed by the sector.
According to the report, 88% of Saudis prefer to buy residential units instead of renting, while 60% of expatriates with a monthly income of more than 30,000 riyals expressed their desire to buy units instead of renting, reflecting a gradual change in the housing culture among residents in the Kingdom.
Riyadh Record price jumps in apartments and villas
In Riyadh, prices of residential units are at an all-time high, due to 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.
Continued price growth in 2024
Residential unit prices in Riyadh during 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.
Jeddah Highest growth rates in 2024
In Jeddah, the housing market during 2024 recorded the highest growth rate among major cities, with the number of residential sales increasing by 53% to 28.07k units compared to 18.3k units in 2023. The value of transactions increased by 43% over the same period.
In terms of prices, apartment prices in Jeddah increased by 3.1% over the past 12 months, to reach SAR 4,215 per square meter by the end of Q4 2024. On the other hand, villa prices fell by 1.7% to register 5000 SAR per square meter.
Urban Dammam. 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 11.28 thousand transactions, while the value of transactions grew by 44% to 13.5 billion riyals.
The prices of apartments in the urban area of Dammam increased by 6.2%, reaching SAR 3,743 per square meter, while the prices of villas increased by 2.7%, reaching SAR 3,530 per square meter.
Strong indicators for continued growth
Knight Frank's figures confirm that the Saudi real estate market is heading towards further growth and stability, driven by government housing programs, rising local 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, the Saudi real estate market seems 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 own homes, amid dynamic changes in prices and preferences, making it one of the most dynamic real estate markets in the region.
