Residential units in the Kingdom - A recent report issued by JLL showed that the market Real estate Saudi Arabia's housing sector continues to experience remarkable growth, with significant performance disparities across major cities. Some 28.4 new housing units are expected to be launched in Riyadh, Jeddah, and Dammam by the end of the year, reflecting the continued investment momentum supported by Saudi Vision 2030 initiatives.
Housing units in the Kingdom: Price growth in Riyadh, Jeddah, and Dammam
Riyadh:
The capital recorded strong performance in the second quarter of 2025, with villa prices rising 15.1% to SAR 6567 per square meter, while apartment prices rose 13.3% to SAR 6067 per square meter.
The average price of luxury properties also jumped to 9203 riyals per square meter.
grandmother:
Villa prices saw a modest increase of 4.4%, with the average price per square meter reaching SAR 6565, while apartment prices declined by about 3%. Luxury villas, on the other hand, recorded an average of SAR 7831 per square meter.
Dammam and Khobar:
Al Khobar showed significant growth, with apartment prices rising by 5.8% and villas by 2.2%, while prices in Dammam remained relatively stable, with villas seeing a slight increase of 1.8%.
Rental and Transaction Developments
The report indicated that villa rents in Riyadh rose by 13.9%, while apartment rents rose by 6.9%. In Jeddah, villa rents declined by 2.8%, while apartment rents increased slightly by 2.4%.
In terms of real estate transactions, Riyadh sales declined by 1.5% through the end of the second quarter of 2025, while Jeddah saw a strong jump of 46.1%, compared to a 23.7% growth in Khobar and a 6.7% decline in Dammam.
New housing supply
Riyadh: 5600 units were completed during the first half of 2025, with an additional 18.9 units expected to enter the market in the second half, bringing the total inventory to more than 2.17 million units.
Jeddah: 2110 units completed, with 8640 new units expected to be added before the end of the year.
Dammam: 1740 units have been completed, with another 860 units expected to enter production, bringing the total inventory to approximately 730 units.
Future investments boost the market
confirmed JLL Continued government initiatives, along with the foreign ownership law expected to be implemented in early 2026, will give the sector a significant boost by attracting international developers and investors and opening up broader horizons for urban expansion.
The report also indicated that the growing demand for integrated residential complexes, particularly in Riyadh and Jeddah, will determine the future supply, while urban expansion in Dammam is directed towards the city's interior and southern regions.
