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As of mid-2025, the average apartment price in Riyadh ranges from SAR 514,000 to SAR 624,000 for a typical 100-120 sqm unit, with premium areas commanding over SAR 1 million for similar properties. The city's residential market has experienced significant growth, with prices increasing 35-40% over the past five years, driven by Vision 2030 initiatives and strong population growth.
Premium districts like Al Olaya and Al Nakheel command prices exceeding SAR 10,500 per square meter, while affordable areas like Al Suwaidi offer properties from SAR 2,000 per square meter. The new 5% Real Estate Transaction Tax (RETT) has replaced the previous 15% VAT, making property purchases more accessible to buyers. Current mortgage rates averaging 5.31% for 20-year terms, combined with a 28.3% increase in mortgage lending, reflect the market's robust demand and government support for homeownership.
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Riyadh's apartment market shows significant price variation across districts, with luxury areas like Al Olaya reaching SAR 10,500+ per sqm while affordable neighborhoods start at SAR 2,000 per sqm.
The market has grown 35-40% over five years, with new tax policies and favorable mortgage conditions supporting continued demand and investment opportunities.
| District Category | Price Range (SAR/sqm) | Typical Apartment Cost | Key Features |
|---|---|---|---|
| Premium Areas | 6,600 - 10,500+ | 800,000 - 1,260,000 | Al Olaya, Al Nakheel, KAFD |
| Mid-Range Areas | 4,000 - 6,000 | 480,000 - 720,000 | Al Sahafa, Al Hamra, Al Narjis |
| Affordable Areas | 2,000 - 4,000 | 240,000 - 480,000 | Al Suwaidi, Al Aziziyah, Al Manar |
| Studio Apartments | 4,000 - 6,000+ | 160,000 - 360,000 | 40-60 sqm typical size |
| 3-Bedroom Units | 5,000 - 10,500+ | 650,000 - 1,890,000 | 130-180 sqm typical size |
| Transaction Costs | 6-7% of purchase price | 30,000 - 84,000 | 5% RETT + 1-2% other fees |
| Market Growth | 8-10% annually | 35-40% over 5 years | Strong demand, limited supply |
What's the current average price of an apartment in Riyadh including all fees and taxes?
As of mid-2025, the average apartment price in Riyadh stands at approximately SAR 5,140 to SAR 5,200 per square meter across the city.
For a typical 100-120 square meter apartment, buyers should expect to pay between SAR 514,000 and SAR 624,000 at the city average. Premium neighborhoods can easily push this figure above SAR 1 million for similar-sized properties, with top-tier areas like Al Olaya reaching up to SAR 10,500 per square meter.
The total cost of purchasing an apartment includes the new Real Estate Transaction Tax (RETT) of 5% of the property value, which replaced the previous 15% VAT system. Additional fees including registration, notary, and agent costs typically add another 1-2% to the purchase price. This brings total transaction costs to approximately 6-7% of the property's value.
For a concrete example, a SAR 600,000 apartment would require approximately SAR 30,000 in RETT plus SAR 6,000 to SAR 12,000 in additional fees, bringing the total cost to around SAR 636,000 to SAR 642,000.
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How do apartment prices vary by neighborhood or district across Riyadh?
Riyadh's apartment market shows dramatic price variations across different districts, with premium areas commanding three to five times the prices of affordable neighborhoods.
Premium districts including Al Olaya, Al Nakheel, Al Yasmin, Hittin, Al Malqa, and the King Abdullah Financial District (KAFD) represent the city's most expensive residential areas. These neighborhoods feature prices ranging from SAR 6,600 to over SAR 10,500 per square meter, driven by their central locations, luxury amenities, and business proximity.
Mid-range areas such as Al Sahafa, Al Hamra, Al Arid, and Al Narjis offer a balance between accessibility and amenities, with prices typically falling between SAR 4,000 and SAR 6,000 per square meter. These districts attract professionals and families seeking quality housing without premium price tags.
Affordable neighborhoods including Al Suwaidi, Al Aziziyah, Al Manar, and Al Nuzha provide entry-level opportunities with prices ranging from SAR 2,000 to SAR 4,000 per square meter. While these areas may lack some premium amenities, they offer significant value for budget-conscious buyers and first-time property owners.
What are the average price differences between studios, 1-bedroom, 2-bedroom, and 3-bedroom apartments?
Apartment prices in Riyadh scale significantly based on size and bedroom count, with larger units commanding premium prices per square meter.
| Apartment Type | Typical Size (sqm) | Price Range (SAR/sqm) | Total Purchase Price Range |
|---|---|---|---|
| Studio | 40-60 | 4,000-6,000+ | 160,000-360,000 |
| 1-Bedroom | 60-90 | 4,000-6,500+ | 240,000-585,000 |
| 2-Bedroom | 90-130 | 4,500-7,500+ | 405,000-975,000 |
| 3-Bedroom | 130-180 | 5,000-10,500+ | 650,000-1,890,000 |
| Luxury 3-Bedroom | 180-250 | 8,000-10,500+ | 1,440,000-2,625,000 |
How much does apartment price typically vary depending on the size or square meterage?
Square meterage directly impacts apartment pricing in Riyadh, with price per square meter varying significantly based on location and property quality.
In affordable areas like Al Suwaidi and Al Aziziyah, prices start at approximately SAR 2,000 per square meter, making a 100 square meter apartment cost around SAR 200,000. Mid-range neighborhoods typically price between SAR 4,000 and SAR 6,000 per square meter, while premium areas can exceed SAR 10,500 per square meter.
Larger apartments generally command higher per-square-meter prices due to premium features and locations. Properties exceeding 150 square meters in premium areas can surpass SAR 1.5 million, while smaller units under 80 square meters in affordable areas may cost less than SAR 300,000.
The price-per-square-meter model allows buyers to quickly calculate expected costs across different neighborhoods and property sizes, providing a standardized comparison method across Riyadh's diverse residential market.
Can you give examples of total apartment purchase costs, including taxes and registration fees?
Understanding total purchase costs requires calculating both the property price and associated transaction fees that buyers must pay.
For an affordable area example, consider a 100 square meter apartment priced at SAR 3,000 per square meter, totaling SAR 300,000. The 5% RETT adds SAR 15,000, while other fees contribute approximately SAR 6,000, bringing the total cost to SAR 321,000.
A mid-range scenario involves a 110 square meter apartment at SAR 5,500 per square meter, costing SAR 605,000. With SAR 30,250 in RETT and SAR 12,100 in additional fees, the total reaches SAR 647,350.
Premium area purchases require significantly higher budgets. A 120 square meter apartment at SAR 9,000 per square meter costs SAR 1,080,000. Adding SAR 54,000 in RETT and SAR 16,200 in other fees brings the total to SAR 1,150,200.
These examples demonstrate how transaction costs represent a substantial additional expense that buyers must factor into their budgeting and financing decisions.
How do mortgage rates and lending conditions affect the total cost of buying an apartment today?
Current mortgage conditions in Riyadh significantly impact the total cost of apartment ownership, with rates and terms directly affecting monthly payments and long-term expenses.
Fixed-rate mortgages for 20-year terms currently average around 5.31%, with rates ranging from 4% to 7% depending on the lender and borrower qualifications. These relatively favorable rates, combined with government initiatives supporting homeownership, have contributed to a 28.3% year-on-year increase in mortgage lending.
For practical application, a SAR 1,000,000 mortgage at 7.22% APR requires monthly payments of approximately SAR 7,750 over 20 years. Lower rates significantly reduce monthly obligations but may require stronger credit profiles or larger down payments.
The improved lending environment has made apartment purchases more accessible to middle-income buyers, while longer-term mortgages reduce monthly payments at the cost of higher total interest payments over the loan's life.
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What are the most expensive areas for apartments in Riyadh, and what makes them so high-end?
Riyadh's premium residential districts command the highest apartment prices due to their strategic locations, luxury amenities, and prestigious addresses.
Al Olaya stands as the city's premier business district, featuring high-rise apartments, luxury shopping destinations, and premium amenities that justify its position as one of the most expensive areas. The district's central location and modern infrastructure attract executives and affluent professionals willing to pay premium prices for convenience and status.
Al Nakheel distinguishes itself through gated communities, proximity to international schools, and access to major shopping malls. The neighborhood's modern infrastructure and family-friendly environment make it particularly attractive to expatriate families and wealthy Saudi families seeking secure, upscale living.
The King Abdullah Financial District (KAFD) represents Riyadh's financial hub, featuring modern skyscrapers and luxury residences that cater to the banking and finance sector. Al Yasmin, Hittin, and Al Malqa round out the premium tier with their combination of green spaces, top-tier schools, and high-end villa and apartment developments.
These areas command premium prices due to their limited supply, high demand from affluent buyers, and the prestige associated with their addresses in Riyadh's social hierarchy.
What are the most promising or upcoming neighborhoods to buy an apartment in right now?
Several emerging neighborhoods in Riyadh offer strong growth potential and attractive investment opportunities for apartment buyers seeking value appreciation.
Al Sahafa has demonstrated strong price appreciation patterns while maintaining luxury project development and proximity to business centers. The area's combination of growth potential and established infrastructure makes it attractive for both investors and residents seeking emerging premium locations.
Al Aqiq shows rapid development with luxury villa projects and new eco-friendly developments that align with Saudi Arabia's sustainability goals. The neighborhood's growth trajectory suggests significant appreciation potential for early investors.
Al Narjis and Al Munsiyah represent excellent opportunities for first-time buyers, offering affordable entry points with developing infrastructure and improving amenities. These areas benefit from ongoing urban development initiatives that should drive future value increases.
The mega-projects of New Murabba and Diriyah Gate, part of Vision 2030 initiatives, represent long-term growth catalysts that will likely benefit surrounding neighborhoods through improved infrastructure and increased demand.
Which areas offer the most affordable apartment options, and what are the trade-offs?
Riyadh's most affordable apartment options concentrate in established residential areas that offer significant value but require trade-offs in terms of amenities and location prestige.
Al Suwaidi, Al Aziziyah, Al Manar, and Al Nuzha represent the city's most budget-friendly neighborhoods, with apartment prices ranging from SAR 2,000 to SAR 4,000 per square meter. These areas provide substantial savings compared to premium districts, making homeownership accessible to middle-income buyers and first-time property owners.
The primary trade-offs include longer commute times to business districts, fewer luxury amenities such as modern shopping centers and recreational facilities, and less prestigious addresses. However, these neighborhoods often feature strong community atmospheres, established local businesses, and good access to essential services.
Many affordable areas offer excellent value propositions for buyers prioritizing space over location, allowing larger apartments for the same budget that would purchase smaller units in premium areas. Additionally, these neighborhoods often show steady appreciation potential as the city continues expanding and developing.
Smart buyers can leverage these areas' affordability to enter the property market while building equity for future upgrades to more premium locations.
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How have apartment prices in Riyadh changed over the past 5 years and in the last 12 months?
Riyadh's apartment market has experienced substantial price growth over recent years, with acceleration particularly evident in the most recent period.
Over the past five years, apartment prices have surged 35-40%, rising from approximately SAR 3,550 per square meter in 2020 to the current range of SAR 4,971 to SAR 5,200 per square meter in 2025. This represents one of the most significant appreciation periods in the city's residential market history.
The most recent 12-month period has shown continued strong growth, with prices increasing 8-10% year-over-year across most neighborhoods. Premium areas have experienced even higher appreciation rates, with some districts seeing double-digit increases driven by limited supply and strong demand from high-income buyers.
This growth trajectory reflects several underlying factors including Vision 2030 economic diversification initiatives, population growth, increased foreign investment, and government policies supporting real estate development and homeownership.
The consistent upward trend suggests a robust market foundation, though buyers should consider whether current appreciation rates are sustainable long-term given economic and demographic factors.
What are the expected price trends for apartments in Riyadh over the next 1, 5, and 10 years?
Market forecasts for Riyadh's apartment sector indicate continued growth across multiple time horizons, driven by fundamental economic and demographic factors.
Over the next 12 months, moderate price growth of 5-10% appears likely, supported by continued strong demand and constrained supply in desirable neighborhoods. The pace may moderate from recent years' rapid appreciation as the market adjusts to higher price levels.
The five-year outlook remains positive, with sustained growth expected through Vision 2030 project implementation, continued population growth, and economic diversification initiatives. These factors should support steady appreciation while creating new residential demand centers around mega-project developments.
Long-term projections for the next decade suggest Riyadh's transformation into a major regional hub will continue driving residential demand. The city's growing importance in finance, technology, and entertainment sectors should support premium residential market expansion while affordable housing initiatives address broader population needs.
However, buyers should consider potential market cycles, economic fluctuations, and policy changes that could influence these projections over longer time periods.
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How do Riyadh's apartment prices compare to other large cities in the region or globally?
Riyadh's apartment market positioning reveals both regional competitiveness and global affordability relative to major international markets.
Within Saudi Arabia, Riyadh commands premium prices compared to other major cities. The capital's average prices of SAR 5,140-5,200 per square meter exceed Jeddah's SAR 4,000-4,200 per square meter and significantly surpass Dammam's SAR 2,800-3,700 per square meter range.
Regionally, Riyadh remains more affordable than Dubai's prime areas, which average over SAR 10,000 per square meter for premium properties. However, the gap has narrowed as Riyadh's luxury segments approach Dubai's pricing levels in select neighborhoods.
Globally, Riyadh maintains significant affordability advantages compared to major international cities like London, New York, or Singapore, where prime residential areas command substantially higher prices per square meter. This positioning makes Riyadh attractive for international investors seeking emerging market opportunities with strong growth potential.
The city's rapid price appreciation and growing international profile suggest continued convergence toward regional premium market levels while maintaining relative global affordability for several more years.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Riyadh's apartment market presents a dynamic landscape with significant opportunities across multiple price segments and neighborhoods.
The combination of strong fundamentals, government support, and regional growth positioning makes the market attractive for both residential buyers and investors seeking exposure to Saudi Arabia's transformation.
Sources
- Saudi Laws - Real Estate Transaction Tax
- Aparthotel - Saudi Arabia Analysis
- Sands of Wealth - Saudi Arabia Price Forecasts
- Imtilak - Riyadh Best Neighborhoods
- Bayut - Riyadh Apartments for Sale
- Arab News - Property Market Report
- Real Estate Saudi - Transaction Tax
- CBRE - Saudi Real Estate Market Review
- Numbeo - Cost of Living Riyadh
- Saudi Market Research - Mortgage Lending