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Riyadh's apartment market is experiencing significant growth, with citywide average prices reaching SAR 5,140-5,200 per square meter as of September 2025. Premium districts like Al Olaya and Al Nakheel command prices over SAR 10,000 per square meter, while affordable areas like Al Suwaidi start around SAR 2,000 per square meter. The market has grown 35-40% over the past five years, driven by Vision 2030 investments and population growth.
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Riyadh apartment prices average SAR 5,140-5,200 per square meter citywide, with typical 100-120m² units costing SAR 514,000-624,000. Premium areas can reach over SAR 10,000 per square meter while affordable districts start around SAR 2,000 per square meter.
| District Category | Price per m² (SAR) | Example Areas |
|---|---|---|
| Premium | 6,600-10,500+ | Al Olaya, Al Nakheel, KAFD |
| Mid-range | 4,000-6,000 | Al Sahafa, Al Hamra, Al Narjis |
| Affordable | 2,000-4,000 | Al Suwaidi, Al Aziziyah, Al Manar |
| Studio Apartments | 160,000-360,000 | 40-60m² units citywide |
| 1-Bedroom | 240,000-585,000 | 60-90m² units citywide |
| 2-Bedroom | 405,000-975,000 | 90-130m² units citywide |
| 3-Bedroom | 650,000-1,890,000 | 130-180m² units citywide |
What's the current average price of an apartment in Riyadh?
As of September 2025, the citywide average apartment price in Riyadh ranges from SAR 5,140 to SAR 5,200 per square meter.
For a typical 100-120 square meter apartment, you can expect to pay between SAR 514,000 and SAR 624,000. Premium areas like Al Olaya and Al Nakheel command significantly higher prices, ranging from SAR 6,600 to over SAR 10,500 per square meter, which means similar-sized apartments in these districts can cost over SAR 1 million.
In contrast, affordable areas like Al Suwaidi offer much more accessible pricing, starting around SAR 2,000 per square meter. This means a 40-60 square meter studio apartment in these budget-friendly neighborhoods can range from SAR 160,000 to SAR 360,000.
The wide price range reflects Riyadh's diverse neighborhood offerings and the ongoing development driven by Vision 2030 initiatives.
How do average apartment prices differ by neighborhood or district?
Riyadh's apartment prices vary dramatically by location, with premium districts costing 3-5 times more than affordable areas.
Premium districts like Al Olaya, Al Nakheel, and the King Abdullah Financial District (KAFD) command the highest prices at SAR 6,600-10,500+ per square meter. These areas attract wealthy professionals, diplomats, and business executives who value proximity to major business centers and luxury amenities.
Mid-range neighborhoods including Al Sahafa, Al Hamra, and Al Narjis offer balanced pricing between SAR 4,000-6,000 per square meter. These districts provide good infrastructure, modern shopping centers, and family-friendly environments while remaining more accessible than premium areas.
Affordable districts such as Al Suwaidi, Al Aziziyah, and Al Manar start around SAR 2,000-4,000 per square meter. These neighborhoods serve as entry points for first-time buyers and young families, while also offering attractive rental yields for investors.
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What's the breakdown of average prices by apartment size and surface area?
Apartment pricing in Riyadh follows a clear structure based on size and type, with larger luxury units commanding the highest per-square-meter rates.
| Type | Typical Size (m²) | Price per m² (SAR) | Total Price Range (SAR) |
|---|---|---|---|
| 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 do apartment prices vary between different property types, like studios, one-bedroom, or luxury units?
Property type significantly impacts pricing in Riyadh's apartment market, with luxury units commanding premium rates regardless of size.
Studios represent the most affordable entry point, typically ranging from SAR 160,000 to SAR 360,000. These compact units appeal to young professionals and serve as popular rental properties in business districts.
One-bedroom apartments range from SAR 240,000 to SAR 585,000, offering a step up in space and amenities while remaining accessible to first-time buyers. Two-bedroom units, priced between SAR 405,000 and SAR 975,000, represent the sweet spot for small families and investors seeking strong rental yields.
Three-bedroom apartments show the widest price variation, from SAR 650,000 to SAR 1,890,000, depending on location and quality. Luxury three-bedroom units and penthouses command the highest prices, ranging from SAR 1.44 million to SAR 2.63 million, particularly in premium districts like Al Olaya and the Diplomatic Quarter.
What is the total cost of buying an apartment when including taxes, fees, and maintenance charges?
The total cost of buying an apartment in Riyadh extends well beyond the listing price, with additional costs typically adding 6-12% to your investment.
The most significant additional cost is the 5% Real Estate Transaction Tax (RETT), implemented in April 2025 and applied to all property purchases. Registration fees add approximately 1% of the property value, while legal fees typically range from 1-2%.
Notary fees range from SAR 500 to SAR 2,000, depending on the transaction complexity. Annual maintenance costs vary from SAR 10-50 per square meter, while insurance, utilities setup, and municipality fees can add SAR 1,000-5,000 to your initial costs.
Agent commissions, usually 2.5% and typically paid by the seller, are often factored into the asking price. For example, purchasing an apartment listed at SAR 600,000 would require approximately SAR 30,000 for RETT plus SAR 6,000-12,000 in other fees, bringing your total investment to SAR 636,000-642,000.
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How do mortgage rates and financing options affect the real cost of buying an apartment in Riyadh today?
Mortgage rates in Riyadh remain relatively favorable in September 2025, with the central bank repo rate at 5% and commercial mortgages typically ranging from 5-6.8% APR.
Most lenders offer loan-to-value ratios of 70-90%, with higher ratios available for Saudi nationals and first-time homebuyers. Standard mortgage terms extend to 20 years, though some lenders offer longer periods for qualified borrowers.
Government programs like Sakani provide substantial support for first-home buyers through subsidies and preferential rates. Sharia-compliant financing options are widely available through Murabaha and Ijara structures, appealing to buyers seeking Islamic banking solutions.
Lenders typically require that total debt payments not exceed 40% of monthly income. For a SAR 600,000 apartment with a 20% down payment, monthly payments would range from SAR 2,400-3,200 depending on the specific rate and term, making homeownership accessible to middle-income professionals.
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What are some example purchase prices of apartments in popular areas?
Specific apartment prices vary significantly across Riyadh's popular districts, reflecting each area's unique characteristics and target demographics.
In luxury areas like Al Olaya and the Diplomatic Quarter, apartments and penthouses command SAR 10,000-15,000 per square meter, with premium properties ranging from SAR 2 million to SAR 8 million. Al Nakheel, Al Malqa, and Al Yasmin offer slightly more accessible luxury options at SAR 7,200-13,500 per square meter.
Mid-range neighborhoods including Al Hamra and Al Sahafa provide excellent value at SAR 4,000-7,000 per square meter, attracting both families and investors. These areas offer modern amenities and good connectivity while remaining more affordable than premium districts.
Affordable areas like Al Suwaidi and Al Aziziyah start around SAR 2,000-4,000 per square meter, making them attractive to first-time buyers and investors seeking high rental yields. These neighborhoods often provide the best entry points into Riyadh's property market while offering potential for future appreciation.
Which neighborhoods are considered the most expensive, which ones are up-and-coming, and which ones are more budget-friendly?
Riyadh's neighborhood hierarchy reflects distinct price tiers and investment opportunities across the city.
The most expensive neighborhoods include Al Olaya (SAR 10,000-15,000 per square meter), known for luxury high-rises and business proximity, and the Diplomatic Quarter (SAR 12,000-18,000 per square meter), favored by expatriates for its security and international community.
Up-and-coming areas show strong growth potential and include Al Yasmin, Al Hamra, and Al Muruj. These neighborhoods benefit from new infrastructure development, modern shopping centers, and increasing sales activity while maintaining mid-tier pricing that attracts both end-users and investors.
Budget-friendly options concentrate in areas like Al Suwaidi and Al Aziziyah, where prices start around SAR 2,000-4,000 per square meter. These neighborhoods offer high rental yields and serve as excellent entry points for first-time buyers and young families.
Family-friendly districts like Al Narjis and Al Arid provide balanced pricing with good infrastructure, while investor hotspots including Al Hamra and Al Sahafa deliver consistent rental returns and active resale markets.
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If you're buying to live in, what are the smartest choices right now, compared to buying for rental income or for resale later?
Your investment strategy should determine your neighborhood choice, as different areas excel for different purposes in Riyadh's current market.
For primary residence, central premium areas like Al Olaya and KAFD offer the best lifestyle value despite higher prices, particularly for professionals working in business districts. Modern family-oriented areas like Al Narjis and Al Hamra provide excellent quality of life with good schools, shopping, and infrastructure at more reasonable prices.
Rental income investors should focus on up-and-coming and affordable mid-tier districts where yields can reach 9-11% citywide. Budget areas often deliver higher yields than luxury districts, which typically generate 6-8% returns. Al Hamra, Al Sahafa, and Al Suwaidi represent strong rental markets with consistent tenant demand.
Resale investors should prioritize northern districts experiencing the strongest long-term growth, especially areas near EXPO 2030 venues, planned metro lines, and new development projects. These locations benefit from government infrastructure investment and population growth, positioning them for continued appreciation through the 2030s.
How do average apartment prices in Riyadh compare to other major regional cities with similar markets?
Riyadh remains significantly more affordable than other major Gulf cities while experiencing faster price growth.
| City | Average Price per m² (SAR) | 3-Bedroom Rent (USD/month) | Price Trend (2024/25) |
|---|---|---|---|
| Riyadh | 5,140-5,200 | $2,047 | +8-11% |
| Dubai | 13,700-16,000 | $4,589 | 10-15% (volatile) |
| Abu Dhabi | 9,400-11,000 | $3,052 | 4-7% |
| Doha | 7,100-8,000 | $2,946 | 4-6% |
Riyadh's apartment prices are approximately 60% lower than Dubai and 45% lower than Abu Dhabi, making it an attractive alternative for Gulf region investors. The city's price growth rate of 8-11% annually matches or exceeds regional competitors while starting from a lower base.
How have apartment prices in Riyadh changed compared to one year ago and compared to five years ago?
Riyadh's apartment market has experienced substantial growth over both short and long-term periods, reflecting the city's economic transformation.
Over the past five years since 2020, apartment prices have increased 35-40%, representing strong compound annual growth. The most recent annual change shows approximately 8.6% growth in 2024, with apartments specifically rising 8.4% in early 2025.
Different districts show varying growth patterns, with North Riyadh leading at 15-18% annual growth, followed by Al Nakheel (12-14%), Al Sahafa (11-13%), Al Malaz (10-12%), and Al Olaya (9-11%). These growth rates reflect ongoing infrastructure development and increasing demand driven by Vision 2030 initiatives.
The market shows no signs of a property bubble, as growth remains demand-driven with low default rates and government monitoring for overheating. This sustainable growth pattern suggests continued strength rather than speculative pricing.
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What are the forecasts for apartment prices in Riyadh over the next one year, five years, and ten years?
Riyadh's apartment market forecasts remain strongly positive across all time horizons, supported by government investment and demographic growth.
Short-term forecasts through 2026 predict continued annual growth of 8-10%, maintaining current momentum. Price peaks are anticipated during the EXPO 2030 build-up period, with key infrastructure corridors potentially experiencing 12-15% annual growth as development accelerates.
Medium-term projections through 2030 expect sustained growth driven by Vision 2030 projects, population increases, and continued economic diversification. The market should benefit from major infrastructure completions including metro systems, new business districts, and entertainment complexes.
Long-term outlook through 2035 suggests market stabilization at higher price levels while maintaining strength. Government investment in NEOM, the Red Sea Project, and other megaprojects will continue supporting demand, while Riyadh's growing role as a regional business hub attracts international residents and investors. The market is expected to mature but remain robust, with annual growth moderating to 4-6% by the 2030s as the market reaches greater maturity.
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 offers compelling opportunities across all price segments, from affordable studios starting at SAR 160,000 to luxury penthouses exceeding SAR 2 million.
With average prices of SAR 5,140-5,200 per square meter and continued growth forecasts of 8-10% annually, the market provides both lifestyle and investment value for buyers willing to navigate the 6-12% transaction costs and competitive financing landscape.