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Riyadh's apartment market is experiencing significant growth with average prices reaching SAR 5,000 per square meter in 2025.
The capital city's property values have risen consistently over the past five years, driven by Vision 2030 initiatives, population growth, and major infrastructure developments. Price variations are substantial across different districts, with luxury areas like KAFD commanding premium rates while emerging neighborhoods offer better value for investors.
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Average apartment prices in Riyadh range from SAR 4,971 to SAR 5,140 per square meter as of mid-2025, with significant variations across districts and property types.
Total buying costs including taxes and fees add approximately 8.5-9.5% to the purchase price, while mortgage rates currently range from 5.3% to 7.4%.
| Apartment Type | Average Size (sqm) | Price Range (SAR) | Best Districts |
|---|---|---|---|
| Studio | 40-60 | 250,000-350,000 | Al Yarmuk, South Riyadh |
| 1-Bedroom | 55-85 | 350,000-500,000 | Al Narjis, Al Hamra |
| 2-Bedroom | 80-120 | 500,000-800,000 | Al Yasmin, Al Munsiyah |
| 3-Bedroom | 110-180 | 700,000-1,200,000 | Al Malqa, Al Yasmin |
| Luxury/Penthouse | 180-350+ | 2,000,000+ | KAFD, Al Olaya |
| Budget Options | 55-80 | 350,000-600,000 | Al Yarmuk, South Riyadh |
| Investment Properties | 70-110 | 500,000-900,000 | Al Narjis, Qurtubah |
What's the current average price of an apartment in Riyadh?
The average apartment price in Riyadh currently stands between SAR 4,971 and SAR 5,140 per square meter as of June 2025.
For a typical 100 square meter apartment, buyers can expect to pay between SAR 497,100 and SAR 514,000. This represents the middle range of the market, excluding both budget properties in outer districts and luxury units in premium locations.
The Riyadh apartment market has shown consistent growth throughout 2024 and into 2025, with prices rising approximately 6.6% to 10.7% over the past 12 months. This growth reflects strong demand driven by population increases, government initiatives under Vision 2030, and continued infrastructure development across the capital.
These averages encompass all apartment types and locations within Riyadh, from affordable units in developing areas to high-end properties in established districts. The price range varies significantly based on specific location, building age, amenities, and apartment size.
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How do average prices differ by apartment type?
Studio apartments represent the most affordable entry point, typically ranging from SAR 250,000 to SAR 350,000 for units between 40-60 square meters.
One-bedroom apartments command higher prices, generally falling between SAR 350,000 and SAR 500,000 for spaces ranging from 55-85 square meters. These units appeal to young professionals and small families starting their property journey in Riyadh.
Two-bedroom apartments occupy the mid-market segment, with prices spanning SAR 500,000 to SAR 800,000 for units between 80-120 square meters. This category represents the most popular choice among families and offers good rental potential for investors.
Three-bedroom apartments cater to larger families and affluent buyers, with prices ranging from SAR 700,000 to SAR 1,200,000 for spaces between 110-180 square meters. These properties often feature premium finishes and better locations within residential compounds.
Luxury penthouses and high-end apartments start at SAR 2,000,000 and can exceed SAR 5,000,000, typically spanning 180-350+ square meters with premium amenities, prime locations, and exclusive features.
What are the average prices by neighborhood or district in Riyadh?
| District/Area | Average Price (SAR/sqm) | Typical Apartment Price (SAR) | Character & Notes |
|---|---|---|---|
| Al Olaya, KAFD | 8,000-10,000 | 1,500,000-3,000,000+ | Luxury business district, premium towers |
| Al Yasmin, Al Malqa | 6,000-8,500 | 800,000-1,500,000 | Family-friendly, established amenities |
| Al Narjis, Al Munsiyah | 4,500-6,000 | 600,000-1,000,000 | Emerging areas, good investment potential |
| Al Yarmuk, Al Hamra | 3,500-5,000 | 400,000-800,000 | Affordable, developing infrastructure |
| South/West Riyadh | 3,000-4,500 | 350,000-700,000 | Budget-friendly, future growth potential |
| Diriyah Area | 7,000-9,000 | 1,200,000-2,500,000 | Historical significance, luxury developments |
| Al Nakheel | 5,500-7,000 | 700,000-1,300,000 | Mixed residential, good schools |
What are the typical sizes and price per square meter for apartments in different areas?
Apartment sizes in Riyadh vary significantly based on the target market and location, with clear patterns emerging across different price segments.
Studio apartments typically range from 40-60 square meters, priced between SAR 4,500-5,500 per square meter. These compact units are most commonly found in business districts and areas targeting young professionals.
One-bedroom apartments span 55-85 square meters with prices of SAR 4,800-5,200 per square meter. The larger units in this category often include additional features like balconies or storage spaces.
Two-bedroom apartments occupy 80-120 square meters, commanding SAR 4,900-5,500 per square meter. These family-oriented units frequently include two bathrooms and living areas designed for comfortable family life.
Three-bedroom apartments range from 110-180 square meters, priced at SAR 5,000-6,000 per square meter. Premium locations and newer developments within this category often exceed the upper price range significantly.
Luxury apartments and penthouses span 180-350+ square meters, with prices reaching SAR 8,000-10,000 per square meter in prime locations like KAFD and Al Olaya.
What is the total cost of buying an apartment, including all fees, taxes, and agency commissions?
The total cost of purchasing an apartment in Riyadh extends well beyond the listed price, with additional fees typically adding 8.5-9.5% to the final amount.
The Real Estate Transaction Tax (RETT) represents the largest additional cost at 5% of the property value, paid entirely by the buyer. This tax applies to all property transactions and cannot be avoided or reduced.
Registration and notary fees add another 1-2% of the property value, covering the legal documentation and official registration of ownership transfer. These fees vary slightly between different registration offices but remain fairly standardized.
Agency commissions typically cost 2.5% of the property value, though this rate can sometimes be negotiated depending on market conditions and the specific agent or agency involved.
Legal and documentation fees range from SAR 3,000 to SAR 10,000, covering lawyer fees, document preparation, and various administrative costs. For a SAR 1,000,000 apartment, total additional costs would include: RETT at SAR 50,000, registration fees at SAR 10,000-20,000, agency commission at SAR 25,000, resulting in total fees of SAR 85,000-95,000.
What are typical mortgage conditions for buying an apartment in Riyadh?
Mortgage conditions in Riyadh have become increasingly competitive as banks compete for real estate financing business in the growing market.
Down payment requirements typically range from 10-30% of the property value, depending on the buyer's financial profile, nationality, and the specific bank's policies. Saudi nationals often qualify for lower down payment requirements compared to expatriate buyers.
Interest rates currently range from 5.3% to 7.4% for fixed-rate mortgages in 2025, with variable rates sometimes offering initially lower costs. The exact rate depends on the loan amount, borrower's creditworthiness, and relationship with the lending institution.
Loan tenure extends up to 20-25 years, with most banks offering flexible repayment schedules. Some institutions provide grace periods or payment holidays under specific circumstances.
For a SAR 1,000,000 apartment with a 20-year loan at 7.2% APR, monthly payments would approximate SAR 7,750. Management and processing fees typically cost 1% of the loan amount, capped at SAR 5,000 by most major banks.
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Which neighborhoods offer the best value for money today?
The best value-for-money neighborhoods in Riyadh depend significantly on your specific investment goals and intended use of the property.
For owner-occupiers seeking quality living conditions, Al Yasmin and Al Malqa offer excellent value with established infrastructure, good schools, family-friendly amenities, and reasonable prices relative to the quality of life provided.
Investment-focused buyers should consider Al Narjis and Al Munsiyah, which represent emerging areas with high rental yield potential and significant appreciation prospects as development continues in these districts.
Long-term capital appreciation seekers should examine KAFD and Diriyah areas, where major infrastructure investments and government initiatives are driving premium demand and sustained price growth.
Budget-conscious buyers can find opportunities in Al Yarmuk, Al Hamra, and South Riyadh, where lower entry prices combine with future development potential to offer attractive risk-adjusted returns. These areas benefit from ongoing infrastructure improvements and increasing connectivity to central Riyadh.
How have apartment prices changed over the past 5 years and 12 months?
Riyadh's apartment market has experienced remarkable growth over the past five years, with prices rising 11.7-14.4% annually since 2020.
This sustained growth reflects the success of Vision 2030 initiatives, massive infrastructure investments, population growth, and increasing economic diversification away from oil dependency. The compound effect of this growth has significantly outpaced inflation and most other investment categories.
Over the past 12 months specifically, apartment prices have increased 6.6-10.7% between Q2 2024 and Q2 2025, representing a slight moderation from the peak growth rates seen in 2022-2023.
The luxury segment has performed exceptionally well, with premium districts experiencing up to 25% growth in some cases, driven by high-net-worth individuals and international investors attracted to Riyadh's emerging status as a regional business hub.
Different apartment types have shown varying performance, with two and three-bedroom family units consistently outperforming studio apartments, reflecting demographic trends and family formation patterns in the growing city.
What are the forecasts for apartment prices in Riyadh over the next 1, 5, and 10 years?
Short-term forecasts for the next 12 months suggest continued but moderated growth of 3-7% as the market begins to mature and supply increases to meet demand.
Five-year projections indicate cumulative growth of 15-35%, driven by ongoing Vision 2030 implementation, population growth, infrastructure completion, and Riyadh's development as a regional business and tourism hub.
The NEOM project, new entertainment districts, and expanded airport facilities will continue attracting both residents and investors, supporting sustained demand for quality residential properties throughout this period.
Ten-year outlook suggests continued appreciation but at a more moderate pace as the market matures and supply catches up with demand. Early-stage rapid growth will likely transition to steady, sustainable appreciation more typical of established markets.
Geographic variations will become more pronounced over time, with prime locations maintaining premium growth while peripheral areas may experience more modest appreciation as development spreads throughout the metropolitan area.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Saudi Arabia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How do apartment prices in Riyadh compare to other major cities in the Gulf or MENA region?
Riyadh currently offers competitive pricing compared to other major Gulf cities, with average prices of SAR 4,971-5,140 per square meter positioning it as more affordable than Dubai or Doha.
Dubai commands significantly higher prices at SAR 10,000-15,000 per square meter, reflecting its established status as a global business and tourism hub with extensive international investment.
Doha falls in the middle range at SAR 8,000-12,000 per square meter, driven by expatriate demand and limited supply in desirable areas. Qatar's smaller market size contributes to higher per-unit pricing.
Within Saudi Arabia, Riyadh has become the most expensive market, surpassing Jeddah (SAR 4,027-4,500/sqm) and Dammam (SAR 4,175/sqm) as the capital's economy diversifies and attracts more businesses and residents.
Cairo offers much lower prices at SAR 2,500-4,000 per square meter, though rising demand and limited quality supply are driving increases in premium areas. Riyadh's pricing reflects its emerging status while remaining accessible compared to established regional financial centers.
What are the best options for living, renting out, or flipping properties?
1. **For Living Purposes:** - Al Yasmin and Al Nakheel offer excellent schools, family amenities, and community facilities - Al Malqa provides good connectivity to business districts with residential tranquility - KAFD suits professionals working in financial services with luxury amenities - Diriyah appeals to those seeking cultural significance and premium lifestyle - Consider proximity to work, schools, and lifestyle preferences when choosing2. **For Rental Investment:** - Al Narjis and Al Munsiyah attract young professionals with emerging business hubs - Areas near universities and hospitals provide steady tenant demand - Two-bedroom apartments offer optimal rental yields across most districts - Properties near metro stations command premium rents and lower vacancy - Consider furnished vs unfurnished based on target tenant demographics3. **For Buy-and-Sell Profit:** - Emerging districts near planned infrastructure offer highest appreciation potential - Areas scheduled for major development projects provide pre-development opportunities - Properties requiring cosmetic renovation can offer quick value addition - Focus on neighborhoods with improving transportation connectivity - Monitor government announcements for new project areas and zoning changes4. **For Short-term Rental:** - Central districts like KAFD and Al Olaya attract business travelers - Properties near shopping centers and entertainment venues perform well - Furnished luxury units in prime locations command premium daily rates - Consider proximity to airports and major attractions for tourist appeal - Ensure compliance with local regulations for short-term rental operationsCan you give example listings or price ranges for different segments?
| Market Segment | Size Range (sqm) | Price Range (SAR) | Typical Districts | Target Buyers |
|---|---|---|---|---|
| Budget-Friendly | 55-80 | 350,000-600,000 | Al Yarmuk, South Riyadh | First-time buyers, young professionals |
| Mid-Range | 80-120 | 600,000-1,200,000 | Al Narjis, Al Yasmin, Al Hamra | Growing families, middle management |
| Luxury | 120-350 | 1,500,000-5,000,000 | KAFD, Al Olaya, Diriyah, Al Malqa | Executives, high-net-worth individuals |
| Upcoming Areas | 70-110 | 500,000-900,000 | Al Munsiyah, Qurtubah, Al Narjis | Investors, early adopters |
| Investment Grade | 85-130 | 550,000-1,100,000 | Areas near planned infrastructure | Professional investors, funds |
| Family Compounds | 150-250 | 1,200,000-3,000,000 | Al Yasmin, Al Malqa, Diplomatic Quarter | Large families, expatriate executives |
| Studio/Bachelor | 40-65 | 250,000-450,000 | Business districts, university areas | Singles, students, young professionals |
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 compelling opportunities across multiple price segments, from affordable entry-level properties to luxury investments in premium districts.
With average prices around SAR 5,000 per square meter and strong growth fundamentals driven by Vision 2030, the market offers both residential and investment potential for informed buyers.
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Sources
- Saudi Arabia Price Forecasts - Sands of Wealth
- Riyadh Property Market Analysis - Sands of Wealth
- Saudi Arabia Real Estate Analysis - Aparthotel
- Riyadh Apartment Rentals - Bayut Saudi Arabia
- Best Areas to Buy in Riyadh 2025 - Real Estate Saudi
- Saudi Real Estate Transaction Tax - Real Estate Saudi
- Non-Saudi Property Ownership - Sands of Wealth
- Emirates NBD Saudi Mortgages
- SAIB Financing Products
- Cost of Living in Riyadh - Numbeo