The curtain has fallen on the year 2025 and its files have been closed, its pens have been lifted and its real estate events have been folded with all its achievements and many challenges in Saudi real estate, which during 2025 witnessed unprecedented transformations, with record numbers of transactions and a remarkable rise in prices, in light of huge residential and commercial projects and regulatory initiatives supporting investment, making the market more dynamic and attractive to local and international investors.
The year 2025 has closed its curtain, its files have been closed, its pens have been lifted and its real estate events have been folded with all its achievements and many challenges in the real estate sector of the Kingdom of Saudi Arabia.
The Saudi real estate market recorded unprecedented activity in the first half of 2025, with the number of residential transactions reaching about 93,700 transactions with a total value of about SAR 77.5 billion (~$20.6 billion), accounting for 63% of the total value of real estate activity. Al-Madinah led the record growth in transaction value, up 49% from the same period last year, with a total value of 3.4 billion riyals.
This strong activity reflects the continued growing demand, driven by lenient mortgage financing programs and the expansion of smart city projects and modern urban areas. Official data showed that real estate prices rose by 4.3% during the first quarter of 2025 compared to the same period in 2024, with prices in the residential sector rising by 5.1%.
Official data showed that real estate prices rose by 4.3% during the first quarter of 2025 compared to the same period in 2024.
In Riyadh, the average price per square meter for apartments reached SAR 6,100, while luxury villas recorded SAR 5,396 per square meter.
In Jeddah, the prices of apartments ranged between SR4,200 and SR4,500 per square meter, while villas reached SR5,114 per square meter.
In Jeddah, the average price of apartments ranged between SR4,200 and SR4,500 per square meter.
This increase reflects the continued demand for units in vital locations and proximity to new infrastructure projects, such as the Riyadh Metro.
In Riyadh: Despite some transactions dropping as much as 20% in some segments, real estate prices rose due to strong demand for units in prime areas near infrastructure.
In Riyadh.
In Jeddah and the Western Region: Jeddah achieved 28% growth in transaction value, fueled by investment in urban and tourism development.
Jeddah and the Western Region.
But... why was 2025 an exceptional year?
The increase in real estate financing activity through new and flexible programs has enhanced the ability of investors and buyers to enter the market in addition to huge urban projects and the entry of new residential and commercial projects within the plans of Vision 2030 has provided wide investment opportunities.
If we look at the past year in terms of influential future legislation, we will find that we are facing several legislations that will inevitably affect the Saudi real estate movement, including the imminent implementation of the law of non-Saudi ownership of real estate in 2026, which is an incentive for investors to take advantage of current opportunities before the legislative change.
The increase in real estate financing activity through new and flexible programs enhanced the ability of investors and buyers to enter the market
If this was the case in 2025, how will it be in 2026? The most prominent expectations for the new real estate year are an influx of new investments: New categories of investors will enter the market with the implementation of the ownership law, which will increase liquidity and activity in the market.
One of the most prominent expectations is the increase in demand for smart and sustainable projects, especially residential units that are built within smart city plans, which will remain the focus of attention.
The most prominent expectation is a balance between supply and demand as the availability of new units and public projects will create a relative balance and limit sudden price increases.
The most prominent expectation is a balance between supply and demand as the availability of new units and public projects will create a relative balance and limit sudden price increases.
In conclusion, we say that 2025 was an important milestone for the Saudi real estate market, setting records and a remarkable rise in prices and transactions. As new legislation comes into effect in 2026, the market will move into a phase of dynamic maturity and stability, reinforcing Saudi Arabia's position as a leading investment destination in the region.
Economic journalist
