Real Estate Transactions - The housing sector in the Kingdom of Saudi Arabia continued its pivotal performance, accounting for approximately 63% of the total value of real estate transactions, which amounted to 123.8 billion riyals during the first six months of 2025, according to a report issued by the company. Knight Frank For global real estate consulting.
Growth in residential real estate transactions
register Real estate market Approximately 93,700 housing deals worth SAR 77.5 billion, a 7% annual increase, supported by increased real estate financing, continued government initiatives, and the delivery of new housing projects in major cities.
Medina is at the forefront
Data showed that Medina led the growth, with the value of transactions rising by 49% to SAR 3.4 billion, while the number of transactions increased by 38%, reflecting rising demand and investor confidence in the local market.
Riyadh enters the equilibrium phase
In contrast, the capital, Riyadh, saw a 20% decline in deal value, reaching SAR 29 billion, and a 31% decrease in deal volume compared to last year.
However, prices continued their upward trajectory, with average apartment prices rising by 10.6% in the second quarter of 2025 to reach SAR 6,175 per square meter.
In Al Taawun district, villa prices jumped 32% to SAR 9,470 per square meter.
In King Abdullah District, it rose by 17% to 7,656 riyals per square meter.
The launch of the Riyadh Metro in late 2024 will also enhance the attractiveness of neighborhoods near stations, such as Al Olaya, Al Yasmin, and Hittin.
Market-stimulating legislation
Faisal Durrani, Head of Research at Knight Frank, explained that one of the most anticipated developments is the implementation of the foreign property ownership regime in early 2026. This is expected to boost market liquidity and investor confidence, alongside mortgage market reforms and accelerated residential unit deliveries.
Villa prices continue to rise
Across the Kingdom, villa prices rose by 8.2% in the second quarter of 2025, reaching SAR 5,470 per square meter.
North Riyadh topped the list of highest-priced areas, with an average of SAR 8,660 per square meter. Al-Sahafa recorded a 24% increase, reaching SAR 8,050, followed by Al-Narjis, with a 16.6% increase, reaching SAR 8,750 per square meter.
Future prospects
Harmen de Jong, Head of Advisory at Knight Frank in the Middle East, confirmed that Riyadh remains one of the most active real estate markets, thanks to major infrastructure projects and Saudi Vision 2030 initiatives.
He added that the implementation of the foreign ownership law will give the market additional momentum, stressing that the current decline is not a sign of weakness, but rather a step toward a more mature and sustainable market.
