Jeddah- Mohammed Jamous: The real estate sector in the western region in general and the city of Jeddah in particular is witnessing a remarkable movement and development, driven by several economic and strategic factors directly linked to the goals of the Kingdom's Vision 2030, as the city is characterized by being a major economic and tourism center, making its real estate market one of the most active and vital markets in the Kingdom, and current indicators show that the real estate market in the region is on a steady pace towards growth and expansion, supported by the huge projects being implemented and advanced infrastructure.

Dynamics of prices and demand

Price and demand dynamics

Indicators indicate that real estate prices in Jeddah fluctuate up and down, due to several reasons, most notably the increase in demand for residential units, as economic development continues and attracts more investments, the demand for real estate increases, whether for housing or investment. However, there are attempts to regulate and balance the market, as new regulations such as «white land fees» are expected to incentivize developers to put more properties on the market, which may affect prices in the long term.

New regulations such as "white land fees" are expected to incentivize developers to put more properties on the market, which may affect prices in the long term.

Medina leads «Residential»

" According to a report issued by global real estate consultancy Knight Frank, Medina recorded the highest growth rate in the value of residential transactions in the Kingdom, up 49% to reach 3.4 billion riyals in the first half of 2025, and the volume of transactions increased by 38%, although the volume of transactions decreased by 31% and the total value decreased by 20% to 29 billion riyals, the first annual decline in years.

In terms of prices, Medina recorded the highest growth rate in residential transactions in the Kingdom, up 49% to reach 3.4 billion riyals in the first half of 2025. <In terms of prices, the average price of apartments rose by 2.5% to SR3,835/m², while villas saw a slight decline of 0.3% to SR3,500/m². With 353.4k units by the end of 2024, the supply is expected to increase to 381.2k units by 2028 after an additional 27.86k units are delivered.

With 353.4k units by the end of 2024, the supply is expected to increase to 381.2k units by 2028.

Mecca. Mixed indicators

<In Makkah, apartment prices fell by 0.5% to SR3650/m², while villa prices rose by 0.4% to SR3420/m². The current supply stands at around 428.2k units, with expectations to rise to 462k units by 2028.

Jeddah. Growing activity and varying prices

Jeddah recorded a remarkable growth in transaction volume by 19%, and an increase in value by 28% to SAR 17.3 billion, and the average price of apartments reached 4324 SAR/m², a year-on-year increase of 2.7%, with clear jumps in the central and western areas by 6% to 5246 SAR/m².

According to another report by JLL, Jeddah saw a limited increase in villa prices by 4.4% to SAR 6,565/m², while villa rents declined by 2.8% against a slight increase in apartments of 2.4%.This balance comes in conjunction with the completion of 2110 units with an expected addition of 8640 new units.

Another report by JLL indicates that the city of Jeddah has seen a slight increase in prices of villas by 4.4% to SAR 6,565/m².

Residential and Commercial Projects Movement

<New residential projects are at the forefront of Jeddah's real estate scene, with many companies and developers, such as Roshan Group, aiming to launch integrated residential complexes. These projects not only provide residential units, but also seek to create integrated urban communities that provide a high quality of life, including service and recreational facilities.

In addition, new residential projects are experiencing a surge in popularity in Jeddah. <In addition, Jeddah is witnessing major urban developments, such as the Downtown Jeddah project and waterfront development, which contribute significantly to the city's attractiveness as an investment destination. These projects increase the value of real estate in the surrounding areas and open up new prospects for investment in the residential and commercial sectors.

Factors affecting the future of the sector

<The real estate sector in Jeddah faces some challenges, such as occasional price fluctuations and a gap between supply and demand for affordable housing units. However, future opportunities look very promising. Government support programs and easier mortgage financing, as well as investments in promising sectors such as tourism and hospitality, are expected to continue to support the sector's growth.

In conclusion, Jeddah's real estate market shows promise. <In conclusion, Jeddah's real estate market is showing strength and durability and is an attractive destination for local and international investment. With the continued implementation of major projects and legislative reforms, the market is expected to maintain its position as one of the main drivers of economic growth in the city.

Medina: Highest growth rate in the Kingdom:

The value of residential transactions increased by 49% to reach 3.4 billion riyals.

Volume of deals increased by 38%.

Average prices:

Average price of apartments: 3,835 SR/m² up by 2.5%.

Average price of villas: 3,500 SR/m², down slightly 0.3%.

Supply of units:

353.4k units by the end of 2024.

Predicted addition of 353.4k units by the end of 2024.

Expect to add 27.86k units by 2028.

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Mecca: Mixed indicators

Average prices:

Average price of apartments: 3,650 SAR/m², down 0.51.

Average price of villas: 3,420 SR/m², up 0.4%.

Supply of units:

428.2k units currently.

Supply expected to rise to 462k units by 2028.

Supply expected to rise to 462k units by 2028.

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Jeddah: Growing activity

Deal Value:

Deal value increased by 28% to reach 17.3 billion riyals.

Deal value increased by 28% to reach 17.3 billion riyals.

Transaction volume grew by 19%.

Average prices and rents:

Average apartment price: 4,324 SAR/m², an increase of 2.7%.

Villa prices rose by 4.4% to 6,565 SR/m².

Villas prices rose by 4.4% to 6,565 SR/m².

Apartment rents rose by 2.4%

Apartment rents rose by 2.4%

Villa rents decreased by 2.8%.

Villa rents decreased by 2.8%.

New Units:

.

Completion of 2,110 units.

Expect to add 8,640 new units.