Despite regional and international economic challenges, Saudi Arabia's residential real estate market continues to assert its position as one of the most vibrant sectors, having accounted for about 63% of the total real estate transactions recorded in the Kingdom during the first half of 2025, valued at 77.5 billion riyals out of a total of 123.8 billion riyals.

In a recent report, global real estate consultancy Knight Frank said that the number of real estate transactions recorded in the Kingdom during the first half of 2025 amounted to 77.5 billion riyals. Global real estate consultancy Knight Frank said in a recent report that the number of residential transactions rose 7% year-on-year to reach about 93.7 thousand transactions, noting that this momentum reflects continued mortgage activity, the expansion of government support programs, and the delivery of new units in major cities.

Madinah. Top growth

Madinah recorded the highest growth rate in residential transaction values in the Kingdom by 49% to reach 3.4 billion riyals during the first half of 2025, driven by an increase in the volume of transactions 38%, although the number of transactions decreased 31% year-on-year. Apartment prices in the city rose by 2.5% to SAR 3,835 per square meter, while villa prices fell 0.3% to SAR 3,500.

Also, prices of apartments in the city rose by 2.5% to SAR 3,835 per square meter.

Riyadh. New equilibrium despite momentum

<Riyadh's market has entered a rebalancing phase after years of expansion, where a slowdown in transactions has not led to lower prices. Average apartment prices rose 11% to SAR 6175 per square meter in Q2 2025, with prices in neighborhoods such as Al Taawun jumping 32% and King Abdullah 17%.

Villa prices continued their upward trajectory, increasing by 8% to reach SAR 5,470 per square meter, with northern neighborhoods such as Al Sahafa and Al Narjis recording the highest growth rates.

North neighborhoods such as Al Sahafa and Al Narjis recorded the highest growth rates.

Mecca. Relative stability

Makkah witnessed relative stability, as apartment prices fell 0.5% to 3650 riyals per square meter, while villa prices rose slightly 0.4% to 3420 riyals. The number of residential units currently stands at 428,000 units, and the supply is expected to exceed 462,000 units by 2028.

Jeddah. Strong growth led by the north

<In Jeddah, transaction volume increased 19% and value increased 28% to reach 17.3 billion riyals. Average apartment prices increased by 2.7% to SR4,324 per square meter, with neighborhoods such as Al Naeem and Al Zahraa leading the growth rates. As for the villa market, average prices rose 3.2% to 5040 riyals per square meter, with northern areas such as Abhur Al Shamaliya and Al Nahda recording the highest rises.

Market profiles and trends

The Knight Frank report noted that the launch of the Riyadh Metro has boosted the attractiveness of neighborhoods with improved access to public transport, while demand for integrated residential complexes that combine residential, commercial, educational and health services continues to grow.

Night Frank's report also noted that the Riyadh Metro's launch has boosted the attractiveness of neighborhoods with improved access to public transport. <The report also noted that strategic projects such as Al Arous by Roshan, supported by the Public Investment Fund, reflect the market's trend towards developing sustainable and attractive residential models, especially in coastal areas.