JLL reported in a recent report that residential real estate prices registered a significant slowdown after a period of strong growth, especially in the capital city of Riyadh.

JLL reported in a recent report. Other cities are still experiencing strong demand and continued price increases, confirming a clear divergence in the dynamics of the real estate market.

In this context, Jeddah and the Dammam metropolitan area - which includes Dammam, Khobar and Dhahran - maintain relatively stable demand, driven by economic diversification efforts and infrastructure development initiatives, which enhances their residential and investment attractiveness.

Residential Supply and Developments:

According to the report, total residential inventory in Riyadh totaled around 2.18 million units by the end of the third quarter of 2025, with approximately 9,468 additional units expected to enter the market during the remainder of the year.

According to the report, the total residential inventory in Riyadh totaled around 2.18 million units by the end of the third quarter of 2025. Jeddah's housing supply reached 1.23 million units, with 4,320 new units completed during the third quarter of the same year.

Jeddah's housing supply reached about 1.23 million units. In Dammam, about 428 housing units were completed during the third quarter, bringing the total inventory to about 725.8 thousand units, with about 400 more units expected to be added before the end of the year.

Price movement in major cities:

Sale prices in Riyadh continued their upward trajectory from the beginning of the year to the third quarter of 2025, with apartment prices increasing by 10.3% year-on-year to reach SAR 6,501 per square meter, while villa prices grew by 9.6% to reach SAR 6,810 per square meter, with average luxury villa prices reaching SAR 10,223 per square meter.

In Jeddah, performance was mixed, with apartment prices falling by 2.8% compared to last year to reach SR4,477 per square meter, while villa prices rose by 3.1% to reach SR6,668 per square meter.

In Dammam, the average price of luxury villas reached SR10,223 per square meter. The city of Dammam witnessed a relatively weaker performance, where apartment prices stabilized with a slight increase of only 0.3%, bringing the average price to 3,578 SAR per square meter, while villa prices increased by 1% to 4,917 SAR per square meter.

In Al Khobar, the upward trend in prices continued from the beginning of the year to Q3 2025, with apartment prices increasing by 5% per year to reach 3,956 riyals per square meter, and villa prices recorded an annual increase of 1.6% to reach 6,104 riyals per square meter.

And in Khobar, the upward trend in prices continued from the beginning of the year to Q3 2025.

Price slowdown in Riyadh... momentum varies between cities

Residential Supply

Riyadh: 2.18 million units | +9,468 units expected by the end of 2025

Riyadh

Jeddah: 1.23 million units | +4,320 units (Q3)

Jeddah

Dammam: 725.8k units | +400 units expected

Price Movement (YoY)

Riyadh:

Apartments ↑ 10.3% | SAR 6,501/m²

Villas ↑ 9.6% | 6,810 riyals/m²

Villas ↑ 9.6% | 6,810 riyals/m²

Jeddah:

Apartments ↓ 2.8% | 4,477 riyals/m²

Apartments ↑ 2.8% | 4,477 riyals/m²

Villas ↑ 3.1% | SAR 6,668/m²

Villas ↑ 3.1% | SAR 6,668/m²

Dammam:

Apartments ↑ 0.3% | SAR 3,578/m²

Villas ↑ 1% | SAR 4,917/m²

News:

Apartments ↑ 5% | SAR 3,956/m²

Villas ↑ 1.6% | 6,104 Riyals/m²