As the Kingdom\u2019s real estate market continues its dynamic trajectory, the housing sector is emerging as a key driving force, according to a recent report by the global real estate consulting firm Knight Frank. The residential sector accounted for approximately 63% of the total value of real estate transactions, which amounted to 123.8 billion riyals during the first half of 2025.<\/p>\n
The company stated that the number of residential transactions rose by 7% year-over-year to reach approximately 93,700 transactions with a total value of 77.5 billion riyals, driven by growth in mortgage activity, the continuation of government support programs, and the delivery of new units in major cities.<\/p>\n
Medina recorded the highest growth rate in residential transaction values nationwide, with an increase of 49% to reach 3.4 billion riyals in the first half of 2025. The volume of transactions there also rose by 38%, despite a 31% decline in the number of transactions and a 20% drop in total value to 29 billion riyals\u2014the first annual decline in years.
\nAs for prices, the average price of apartments increased by 2.5% to SAR 3,835\/m\u00b2, while villas saw a slight decrease of 0.3% to SAR 3,500\/m\u00b2. 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.<\/p>\n
In Riyadh, average apartment prices rose by 11% year-over-year in the second quarter of 2025 to reach 6,175 riyals\/m\u00b2, driven by strong demand in central neighborhoods. The Al-Taawon neighborhood saw a jump of about 32% to 9,470 riyals per square meter, while prices in the King Abdullah neighborhood rose by 17% to 7,656 riyals per square meter.
\nIn the south of the capital, prices reached an average of 3,000 riyals per square meter, reflecting the entry of a new segment of buyers.
\nAs for villas, prices continued to rise by 8% to 5,470 riyals\/m\u00b2, with northern Riyadh remaining the most expensive area at an average of 8,660 riyals\/m\u00b2. Al-Sahafa recorded growth of 24% to 8,050 riyals per square meter, followed by Al-Narges with an increase of 17% to 8,750 riyals per square meter.<\/p>\n
In Makkah, apartment prices fell by 0.5% to SAR 3,650\/m\u00b2, while villa prices rose by 0.4% to SAR 3,420\/m\u00b2. The current supply stands at 428.2k units, with a projected increase to 462k units by 2028.<\/p>\n
As for Jeddah, it recorded remarkable growth in transaction volume of 19%, and an increase in transaction value of 28% to 17.3 billion riyals. The average price of apartments reached 4,324 riyals per square meter, a year-over-year increase of 2.7%, with notable jumps in the central and western regions of 6% to 5,246 riyals per square meter.
\nSpecifically, prices in the Al-Naim neighborhood rose by 12.2% to 4,885 riyals\/m\u00b2, and in the Al-Zahra neighborhood by 10% to 6,325 riyals\/m\u00b2. As for villas, prices saw a moderate increase of 3.2% to 5,040 riyals\/m\u00b2, while the northern areas remained the most in demand, rising by 5.4% to 6,150 riyals\/m\u00b2. Abhur Al-Shamaliyah led the growth with a 9.2% increase to 5,800 riyals\/m\u00b2, followed by Al-Nahda with an 8.3% increase to 5,850 riyals\/m\u00b2.<\/p>\n
The report noted that the residential real estate market in Riyadh entered a phase of rebalancing during the first half of 2025, but this did not put pressure on prices, as apartments and villas continued their upward trend. The launch of the Riyadh Metro contributed to the increased appeal of neighborhoods with direct access to public transportation, such as Al-Olaya, Al-Yasmin, and Hatin, which saw significant increases in villa prices.<\/p>\n
The report concluded that demand is increasingly shifting toward gated residential complexes with integrated master plans, which include residential, commercial, educational, and healthcare components. It noted that major projects such as Roshen\u2019s Al-Arous project, supported by the Public Investment Fund, are generating significant interest, particularly in coastal areas where there is growing demand for units overlooking the waterfront and community amenities.<\/p>\n
<\/p>","protected":false},"excerpt":{"rendered":"
Reading time: <\/span> 2<\/span> Minutes<\/span><\/span>As the Kingdom's real estate market continues its dynamic trajectory, the housing sector is emerging as a key driving force, global real estate consultancy Knight Frank said in a recent report. The residential sector accounted for approximately 63% of the total real estate transaction value of SR123.8 billion during the first half of 2025. Rising activity with the support of government funding, the company explained ... 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