The report shows that Rental prices are evolving in Saudi Arabia. <The report shows that evolving end-user needs and increasing demand for affordable apartments are keeping pace with ambitious urban development projects as part of Vision 2030, which continue to attract significant investment in Riyadh, Jeddah and Dammam. Population growth, economic diversification and government initiatives to increase homeownership rates have also contributed to these investments, along with a growing interest in residential complexes with integrated urban planning, especially in Riyadh and Jeddah.
Saud said that the increase in demand for affordable apartments is in line with the ambitious urban development projects under the Kingdom's Vision 2030. <Saud Al-Sulaimani, Regional Director and Head of Capital Markets at JLL Saudi Arabia, said: "The residential real estate market in Saudi Arabia is maturing, driven by government initiatives and the Kingdom's goals to meet the needs of end-users. With the impending implementation of the Foreign Ownership Law in January 2026, we expect this to further drive the sector and boost supply, attracting more international investors and developers and opening up opportunities for all stakeholders."
Residential real estate in Saudi Arabia has matured significantly, driven by government initiatives and the Kingdom's goals for end-users.
Urban Markets Performance
The report showed mixed performance in the major markets. In Riyadh, the market continued to register positive momentum with villa prices rising by 1.15% and apartments by 3.13% during Q2 2025. Rents for villas increased by 9.13% year-on-year, versus a 6.9% increase in apartment rents.
In Jeddah, the market continued to register positive momentum. <In Jeddah, the performance was mixed, with villa prices rising by 4.4% y-o-y, while apartment prices recorded a slight decrease of 3%. In terms of rents, apartment prices increased by 4.2%, while villa rents declined by 8.2%.
<In the Dammam metropolitan area - which includes Dammam, Khobar and Jubail - the region continued to strengthen its position as a destination for waterfront residential projects. Al Khobar saw a year-on-year increase in apartment prices by 8.5% and villas by 2.2%, while Dammam recorded relatively stable apartment prices, while villa prices increased by 8.1%.
Dammam recorded relatively stable apartment prices, while villas increased by 8.1%.
Transaction Dynamics
<According to the report, Jeddah and Al Khobar saw an increase in sales transactions, while Riyadh and Dammam recorded a slight decline. Total sales transactions in Riyadh decreased by 5.1% year-on-year until Q2 2025, with some 82,758 transactions recorded, of which apartments accounted for the majority at 81.3%. Al Narges area was the most active in apartment transactions, while Al Yasmeen area topped the villa transactions.In Jeddah, the volume of transactions increased by 5.1%. <In Jeddah, the volume of transactions increased by 1.46% to reach 101,000 transactions, with Al Marwa emerging as the most active neighborhood in apartment transactions, while Al Rawda topped the villa transactions. In Khobar, transactions recorded a year-on-year increase of 7.23%, while Dammam saw a decline of 7.6%, with apartments dominating most of the transactions.
Residential Supply
<In Riyadh, total housing stock rose to 1.72 million units following the delivery of 5,600 new units during the first half of the year, with an additional 18,900 units expected to enter the market by the end of 2025. In Jeddah, the inventory rose to 1.23 million units after 8,640 units were delivered, with more to be added in the coming months. The report noted that future supply is heading north of Riyadh and Jeddah, with an increasing share of integrated residential complexes, while current inventory in Dammam and Khobar is centered on coastal areas, and is expected to gradually expand towards the southern interior parts.Future supply is heading north of Riyadh and Jeddah, with an increasing share of integrated residential complexes.
