A recent report by JLL JLL shows that the Kingdom's residential real estate market is witnessing remarkable growth and differential performance between major cities, with around 28.4 thousand new housing units expected to be added in Riyadh, Jeddah and Dammam by the end of this year, reflecting continued investment momentum supported by Saudi Vision 2030.

Price growth

Riyadh recorded a strong performance in the second quarter of 2025, with villa prices rising by 15.1% to reach SAR 6567 per square meter, while apartment prices increased by 13.3% to reach SAR 6067 per meter. The average price of luxury properties jumped to 9203 riyals per meter.

<Jeddah witnessed a limited rise in villa prices by 4.4% to SAR 6565 per meter, while apartment prices fell by 3%. Luxury villas recorded an average of 7831 riyals per meter. In the Dammam metropolitan area, Al Khobar showed significant growth with apartment prices increasing by 5.8% and villas by 2.2%, while prices in Dammam remained almost stable with a slight increase for villas of 1.8%.

Rents and Transactions

<The report shows that villa rents in Riyadh increased by 13.9% and apartments by 6.9%, while villa rents in Jeddah decreased by 2.8% against a slight increase in apartments of 2.4%. In terms of transactions, Riyadh's sales decreased by 1.5% until Q2 2025, while transactions in Jeddah increased by a significant 46.1%, against a growth of 23.7% in Khobar and a decline of 6.7% in Dammam.

Dammam.

Residential Supply

<According to the report, 5,600 units were completed in Riyadh during the first half of 2025, with an additional 18.9 thousand units expected to enter in the second half, bringing the inventory to more than 2.17 million units. In Jeddah, 2110 units were completed with 8,640 new units expected to be added, while Dammam recorded 1740 units completed and another 860 units are expected to enter, bringing the total inventory to about 730,000 units.

Future Investments

<JLL believes that continued government initiatives, coupled with the Foreign Ownership Law due to be implemented in early 2026, will give the sector a boost by attracting international developers and investors and opening up more opportunities for urbanization. It also emphasized that the growing demand for residential complexes with integrated planning and various facilities, especially in Riyadh and Jeddah, will determine the future supply, while urban expansion in Dammam will be directed towards the interior and southern areas of the metropolis.