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As of September 2025, Saudi Arabia's residential property market shows strong fundamentals with national average prices ranging from SAR 4,200 to SAR 5,824 per square meter. The Saudi property market is experiencing significant growth driven by Vision 2030 initiatives, with Riyadh leading price appreciation at 8-10% annually while offering diverse options from budget-friendly suburban homes to luxury developments in prime districts.
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Saudi Arabia's residential property prices range from SAR 4,200-5,824 per square meter nationally, with Riyadh commanding the highest prices at SAR 5,824/sqm for villas and SAR 4,971/sqm for apartments.
Total buying costs typically add 6-7% to the purchase price, while mortgage rates range from 3.5-4.5% for Saudis and 5.5-7% for expats, making property ownership increasingly accessible.
| City | Apartments (SAR/sqm) | Villas (SAR/sqm) | Prime Areas (SAR/sqm) | Annual Growth |
|---|---|---|---|---|
| Riyadh | 4,971 | 5,824 | up to 15,000 | 8-10% |
| Jeddah | 4,200-4,500 | 5,707 | up to 14,000 | 4-6% |
| Dammam | 1,000-3,600 | 1,080-3,626 | 9,500 | 6-8% |
| Madinah | 3,500-4,000 | 4,500-5,000 | 8,500 | 5-7% |
| National Average | 4,200-5,200 | 5,000-5,824 | 8,000-15,000 | 6-8% |
What is the current average house price in Saudi Arabia?
The current average house price in Saudi Arabia ranges from SAR 4,200 to SAR 5,824 per square meter as of September 2025.
Riyadh leads the market with the highest prices, where apartments average SAR 4,971 per square meter and villas command SAR 5,824 per square meter. Jeddah follows with apartments priced between SAR 4,200-4,500 per square meter and villas at SAR 5,707 per square meter.
The Saudi residential property market has experienced a national growth rate of 4.3% over the past year, with residential properties specifically growing by 5.1%. This growth is primarily driven by Vision 2030 initiatives, mega-project developments, and increased mortgage accessibility for Saudi citizens and residents.
For a typical family home, buyers can expect to pay anywhere from SAR 500,000 to SAR 1.5 million for mid-range properties, while entry-level small apartments in suburban areas start from SAR 250,000 to SAR 500,000. Luxury properties in prime locations command prices exceeding SAR 1.5 million.
How do prices differ between apartments, villas, and townhouses?
Property prices in Saudi Arabia vary significantly based on type, with villas commanding the highest prices per square meter, followed by townhouses, then apartments.
Small apartments (30-65 square meters) are priced between SAR 4,200-15,000 per square meter, with high demand particularly from young professionals in city centers. These compact units have seen a 151% increase in transactions, making them the fastest-growing segment by volume.
Townhouses (150-300 square meters) typically cost SAR 5,000-9,000 per square meter and are experiencing strong annual growth of 6-9%. These properties appeal to families seeking more space while maintaining affordability compared to standalone villas.
Villas (200-500+ square meters) represent the premium segment, priced from SAR 5,707-10,000 per square meter, with luxury properties in prime areas reaching even higher prices. The villa segment shows the fastest price appreciation, particularly in high-amenity districts benefiting from Vision 2030 infrastructure projects.
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What are the most expensive areas to buy in, the up-and-coming neighborhoods, and the more budget-friendly locations?
The most expensive areas in Saudi Arabia are concentrated in Riyadh's northern districts and Jeddah's coastal zones, with prices reaching up to SAR 15,000 per square meter.
Most expensive locations include Al Malqa and New Murabba in North Riyadh, Jeddah Corniche, Al Hamra district, and prime Red Sea coastal developments. These areas benefit from luxury amenities, international schools, premium shopping centers, and proximity to major Vision 2030 projects.
Up-and-coming neighborhoods showing strong appreciation potential include New Murabba in Riyadh, Sports Boulevard area, Al Yasmin, and Al Nakheel districts. These areas benefit from upcoming metro connectivity, infrastructure upgrades, and new government facilities. In Jeddah, new waterfront projects and expanded Corniche developments are driving growth, while the NEOM region presents long-term speculative opportunities.
Budget-friendly locations offer excellent value for first-time buyers and investors seeking affordable entry points. Dammam's Al Faisaliyah district, South Riyadh neighborhoods, outer Jeddah districts, and secondary cities provide properties starting from SAR 1,000-3,600 per square meter. These areas often offer better rental yields and strong growth potential as infrastructure expands.
How do prices vary depending on property size and surface area?
Property prices in Saudi Arabia show an inverse relationship with size, where smaller units command higher prices per square meter due to increased demand and urbanization trends.
| Property Size | Price Range (SAR/sqm) | Typical Total Price | Target Market | Growth Rate |
|---|---|---|---|---|
| Small Apartments (30-65 sqm) | 4,200-15,000 | 250,000-500,000 | Young professionals | High demand (+151% transactions) |
| Medium Apartments (66-120 sqm) | 4,000-8,000 | 400,000-800,000 | Small families | Steady growth |
| Townhouses (150-300 sqm) | 5,000-9,000 | 750,000-1,500,000 | Growing families | 6-9% annual |
| Standard Villas (200-400 sqm) | 5,500-8,500 | 1,100,000-2,500,000 | Affluent families | 8-12% annual |
| Luxury Villas (400+ sqm) | 8,000-15,000 | 2,500,000+ | High-net-worth individuals | Fastest appreciation |
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What is the total cost of buying a property including fees, taxes, and other charges?
The total cost of buying property in Saudi Arabia typically adds 6-7% to the purchase price through various fees, taxes, and charges.
The Real Estate Transaction Tax represents the largest additional cost at 5% of the property value, paid by the buyer. However, first-time Saudi buyers receive an exemption for the first SAR 1 million of property value, providing significant savings for citizens entering the market.
Additional costs include mortgage registration fees at approximately 1% of the loan value, legal fees ranging from 1-2% of the purchase value, and various administrative charges. The seller typically pays the agent or broker fee of 2.5%, which doesn't affect the buyer's costs.
For a SAR 1 million property purchase, buyers should budget approximately SAR 60,000-70,000 for all additional costs, excluding the down payment and mortgage interest over time. Saudi Arabia notably has no annual property tax for owner-occupied homes, though investment properties are subject to Zakat for Saudis and rental/capital gains tax for foreigners.
What are the typical mortgage options available, and how do they impact affordability?
Saudi Arabia offers competitive mortgage options with favorable terms for citizens and accessible financing for qualified expatriates.
Saudi citizens can access subsidized rates between 3.5-4.5% through government programs, or market rates of 4.5-6% for conventional mortgages. Expatriates and premium residents typically qualify for rates between 5.5-7%, which remain competitive compared to regional markets.
Loan-to-Value ratios are generous, with most Saudis qualifying for 70-90% LTV while expatriates can typically secure 70-75% LTV. This means buyers need down payments of 10-30% depending on their residency status and the specific mortgage program.
Islamic (Shariah-compliant) financing options are widely available at rates between 4-5.5%, providing alternatives for those preferring Islamic banking principles. Mortgage terms typically range from 15-20 years, with maximum age limits for borrowers varying by institution.
For a SAR 1 million property with 20% down payment, monthly mortgage payments would range from SAR 4,200-5,800 depending on the interest rate and term length, making homeownership accessible for middle-income professionals.
Can you give some example purchase prices in different regions and property types?
Property prices across Saudi Arabia vary dramatically by location and type, offering options for diverse budgets and investment strategies.
In Riyadh, a 100-square-meter apartment in a prime northern district like Al Malqa costs approximately SAR 1.2-1.5 million, while the same size apartment in suburban areas costs SAR 600,000-850,000. A luxury 300-square-meter villa in North Riyadh can reach SAR 2.5-4.5 million.
Jeddah offers coastal premium properties where a 150-square-meter apartment on the Corniche costs SAR 1.5-2.1 million, compared to SAR 700,000-1 million for similar properties in outer districts. Jeddah villas with sea views command SAR 2-3.5 million for 250-400 square meters.
Dammam represents the most affordable major city, where 120-square-meter family apartments cost SAR 300,000-600,000, and 200-square-meter villas range from SAR 500,000-1.2 million. These prices make Dammam particularly attractive for first-time buyers and investors seeking higher rental yields.
Secondary cities like Madinah offer middle-ground pricing with 100-square-meter apartments costing SAR 400,000-700,000 and family villas ranging from SAR 800,000-1.5 million, providing good value while maintaining access to religious tourism and growing infrastructure.
How have house prices changed compared with one year ago, and compared with five years ago?
Saudi Arabia's property market has shown consistent growth acceleration, with prices rising 4.3% nationally over the past year and an impressive 28-32% over the past five years.
The one-year growth of 4.3% nationally masks significant regional variations, with Riyadh leading at 5.1% growth for residential properties while Jeddah showed more moderate appreciation. This recent growth is driven by increased mortgage uptake, Vision 2030 project momentum, and persistent housing shortages in major cities.
Five-year growth patterns reveal the market's transformation, with Riyadh apartments appreciating 35-40% and villas gaining 42-48% since 2020. This substantial appreciation reflects the fundamental shift in Saudi Arabia's economy and real estate regulations, including expanded foreign ownership rights and massive infrastructure investments.
The growth acceleration is particularly evident in luxury segments and areas benefiting from Vision 2030 projects. Prime districts in Riyadh and Jeddah have seen even higher appreciation rates, while secondary cities have experienced more modest but steady growth of 20-25% over five years.
This growth trajectory positions Saudi Arabia among the strongest-performing real estate markets in the MENA region, driven by structural economic changes rather than speculative bubbles.
What are the forecasts for prices in one year, five years, and ten years?
Saudi Arabia's property market is projected to continue strong growth with 6-8% annual appreciation nationally over the next year, accelerating to 8% compound annual growth rate over five years.
One-year forecasts show Riyadh leading with 8-10% price appreciation, Jeddah expecting 4-6% growth, and secondary cities averaging 6-8% increases. This growth is supported by ongoing Vision 2030 projects, infrastructure completions, and continued mortgage market expansion.
The five-year outlook is particularly optimistic, with the residential market size forecast to reach SAR 381 billion by 2029. Major cities undergoing infrastructure upgrades are expected to maintain 8% compound annual growth rates, with high-amenity districts and areas benefiting from completed Vision 2030 projects leading appreciation.
Ten-year projections indicate a sustainable 6.9% compound annual growth rate for the residential sector, driven by Vision 2030 legacy projects, demographic growth, and continued economic diversification. This long-term forecast reflects the structural transformation of Saudi Arabia's economy and real estate sector.
Areas positioned near completed mega-projects, new transportation hubs, and international business districts are expected to outperform these averages significantly, while maintaining the market's overall stability through diversified economic growth.
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.
What are the smartest choices today if someone wants to buy for living, for renting out short-term, for renting out long-term, or for reselling at a higher price later?
The smartest property choices in Saudi Arabia depend on your specific investment goals, with different strategies optimized for personal residence, rental income, or capital appreciation.
For personal residence, up-and-coming suburban districts in Riyadh, Jeddah, and Dammam offer the best combination of amenities, infrastructure access, and appreciation potential. Avoid over-priced city center premiums and instead focus on neighborhoods with planned metro connections and new infrastructure projects that will enhance livability and property values.
Long-term rental investments should target small apartments in major city centers, particularly in Riyadh and Jeddah, focusing on properties attractive to young professionals. These properties typically generate 5-6% annual rental yields in prime locations while maintaining strong occupancy rates and steady appreciation.
Short-term rental opportunities are best pursued in vacation properties around Abha/Al Soudah tourism areas, waterfront locations along Jeddah Corniche, and areas positioned near Expo 2030 venues and mega-events. These properties offer very high potential returns during peak tourism and event periods, though they require more active management.
For resale and speculation strategies, target districts directly benefiting from Vision 2030 mega-projects, future Expo 2030 infrastructure upgrades, and NEOM-linked developments. While these carry higher risk, they offer the greatest potential for outsized returns as projects reach completion and drive area transformation.
How do prices in Saudi Arabia compare with those in other large, similar international cities?
Saudi Arabia's property prices remain competitive compared to regional peers, offering strong value particularly when considering growth potential and economic fundamentals.
| City | Price Range (USD/sqm) | Market Position | Investment Appeal |
|---|---|---|---|
| Riyadh, Saudi Arabia | 1,300-4,000 | Strong growth, affordable entry vs. Dubai | High growth potential, government backing |
| Jeddah, Saudi Arabia | 1,100-3,700 | Mid-range, strong rental market | Coastal premium, tourism growth |
| Dubai, UAE | 2,000-10,000+ | International expat hub | Established but expensive |
| Abu Dhabi, UAE | 1,500-5,000+ | Luxury/Emirati-focused | Stable but limited growth |
| Doha, Qatar | 1,500-4,000+ | Expat-driven market | Post-World Cup adjustment |
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Overall, what are the best strategies right now for buyers depending on their goals and budget?
The optimal property strategy in Saudi Arabia should prioritize districts with strong infrastructure development and align with your specific financial goals and risk tolerance.
For most buyers, mid-market townhouses or small apartments in emerging neighborhoods offer the best combination of affordability and appreciation potential. These properties benefit from Vision 2030 infrastructure investments while remaining accessible to middle-income buyers and providing steady rental income opportunities.
Expatriates and new arrivals should focus on properties in international-friendly locations such as northern Riyadh, Jeddah Corniche, and Dammam, where clear mortgage terms and established expat communities provide security and convenience. These areas also typically offer better resale liquidity when expatriates eventually relocate.
First-time buyers should maximize government incentives by taking advantage of tax exemptions on the first SAR 1 million and accessing subsidized mortgage rates available to Saudi citizens. This can significantly reduce the total cost of homeownership and improve long-term financial returns.
Savvy investors should monitor new zones permitting foreign freehold ownership, expected to expand in 2026, as these areas are positioned for outsized growth once fully accessible to international buyers. Additionally, diversifying between rental yield and appreciation strategies helps maintain portfolio resilience regardless of market cycles.
The key is balancing immediate affordability with long-term growth potential, focusing on locations with occupancy resilience that aren't solely dependent on event-based economic booms but benefit from sustainable demographic and economic growth trends.
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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.
Saudi Arabia's property market in September 2025 presents compelling opportunities across all segments, from affordable entry-level apartments to luxury developments in prime locations.
The combination of Vision 2030 infrastructure investments, competitive mortgage rates, and sustained economic growth creates a favorable environment for both residents and investors seeking long-term value in one of the region's most dynamic real estate markets.
Sources
- Sands of Wealth - Average House Price Saudi Arabia
- Global Property Guide - Saudi Arabia Price History
- Sands of Wealth - Saudi Arabia Best Areas
- Select Realty - Top Investment Areas Saudi Arabia 2025
- Soul of Saudi - Real Estate Transaction Tax
- Expatica - Mortgages in Saudi Arabia
- Nevestate - Saudi Arabia Real Estate Investment 2025
- DAR Global - KSA Real Estate Market Analysis
- Deloitte - KSA Real Estate Predictions 2025
- Global Finance Magazine - Saudi Arabia Real Estate Liberalization