Residential Real Estate - A recent report issued by JLL Titled “Saudi Arabia Residential Market Dynamics for Q2025 XNUMX,” the report notes that the Kingdom’s residential real estate market is showing clear signs of maturity, with rental prices rising significantly, while transaction performance varies across urban areas.
Drivers of residential real estate market growth
The report indicated that the development of end-user needs and the increase in demand for affordable residential apartments are in line with ambitious urban development projects within Saudi Vision 2030Which attracts major investments in Riyadh, Jeddah and Dammam.
Population growth, economic diversification, and government initiatives to increase ownership rates have also supported the market.
The report also noted growing interest in residential complexes with integrated urban planning, particularly in Riyadh and Jeddah.
Sector experts' statements
In this context, Saud Al Sulaimani, Regional Director and Head of Capital Markets at JLL Saudi Arabia, confirmed that the market is witnessing significant maturity driven by government initiatives. He noted that the foreign ownership law, scheduled to be implemented in January 2026, will provide a significant boost to the sector by enhancing supply and attracting more international investors and developers.
Urban Market Performance
Riyadh: Villa prices rose by 1.15%, and apartment prices by 3.13% during the second quarter of 2025. Villa rents also rose by 9.13% year-on-year, compared to 6.9% for apartments.
Jeddah: Villa prices grew by 4.4% year-on-year, while apartment prices declined by 3%. As for rents, apartment prices rose by 4.2%, while villa rents declined by 8.2%.
Dammam Metropolitan Area (Dammam, Khobar, and Jubail): Continuing to strengthen its position as a hub for waterfront projects, apartment prices in Khobar rose by 8.5% and villa prices by 2.2%, while Dammam saw relative stability in apartment prices and an 8.1% increase in villa prices.
Transaction Dynamics
The report showed that the volume of real estate transactions varied between cities:
In Riyadh, sales transactions declined by 5.1% to approximately 82,758, of which apartments accounted for 81.3%. Al Narjis was the most active area for apartment transactions, while Al Yasmin topped villa transactions.
In Jeddah, transaction volume increased by 1.46% to 101,000, with Al Marwa area dominating the list of apartment transactions and Al Rawdah area dominating the list of villa transactions.
In Khobar, transactions increased by 7.23%, while in Dammam, they decreased by 7.6%, with apartments dominating the majority of transactions.
Housing supply
The report indicated that the total stock Housing units In Riyadh, it rose to 1.72 million units after 5,600 new units were delivered during the first half of 2025, with an additional 18,900 units expected to enter the market by the end of the year.
In Jeddah, inventory reached 1.23 million units after 8,640 units were delivered, with plans to increase supply in the coming months.
The report also noted that future supply is skewed toward the north of Riyadh and Jeddah, with an increasing share of integrated complexes, while current inventory in Dammam and Khobar is concentrated in coastal areas, with plans to gradually expand southward.
