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Saudi Arabia's residential property market has experienced remarkable growth as of June 2025, with average house prices varying significantly across major cities like Riyadh, Jeddah, and Dammam. The Kingdom's Vision 2030 initiatives and economic diversification have driven strong demand, making property investment increasingly attractive for both locals and expats.
Property prices have risen 4.3% year-on-year in Q1 2025, with luxury segments in Riyadh seeing increases of up to 15%. Whether you're considering buying to live, invest, or relocate, understanding the current market dynamics, regional price variations, and investment costs is crucial for making informed decisions in Saudi Arabia's evolving real estate landscape.
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As of June 2025, average house prices in Saudi Arabia range from SAR 4,200-5,824 per square meter, with Riyadh commanding the highest prices and luxury properties seeing 12-15% annual growth.
The residential market is projected to reach SAR 381 billion by 2033, driven by Vision 2030 projects and strong demand for small apartments in major cities.
| City | Apartment Price (SAR/sqm) | Villa Price (SAR/sqm) | Prime Area (SAR/sqm) | Suburban (SAR/sqm) |
|---|---|---|---|---|
| Riyadh | 4,971 | 5,824 | 15,000 | 8,500 |
| Jeddah | 4,200-4,500 | 5,707 | 14,000 | 7,800 |
| Dammam | - | - | 9,500 | 6,000 |
| Madinah | - | - | 8,500 | 5,500 |
What's the average house price in Saudi Arabia right now?
As of June 2025, the average house price in Saudi Arabia varies significantly by city and property type, with national residential prices rising 4.3% year-on-year in Q1 2025.
In Riyadh, apartments average SAR 4,971 per square meter, while villas command SAR 5,824 per square meter. Prime areas in the capital can reach SAR 15,000 per square meter, compared to suburban areas at SAR 8,500 per square meter.
Jeddah shows slightly lower prices with apartments averaging SAR 4,200-4,500 per square meter and villas at SAR 5,707 per square meter. Prime coastal areas reach SAR 14,000 per square meter, while suburban properties average SAR 7,800 per square meter.
The luxury segment has experienced the strongest growth, with villa prices in Riyadh increasing 12-15% annually, driven by high-net-worth expats and government-backed development projects.
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How much do prices vary depending on the city or region?
Regional price variations in Saudi Arabia's residential market are substantial, reflecting economic activity, infrastructure development, and local demand patterns across different cities and provinces.
The major cities show distinct pricing tiers: Riyadh leads with the highest average prices, followed closely by Jeddah, while Dammam offers more moderate pricing. Madinah presents competitive rates, particularly in suburban areas at SAR 5,500 per square meter compared to prime areas at SAR 8,500 per square meter.
Smaller regions experienced mixed performance in 2024: Jazan recorded positive growth of 1.3% year-on-year, while Al Baha saw a significant decline of 18.4%. Hail showed modest growth at 0.9%, whereas Al Qaseem declined 3.4%, Najran dropped 0.7%, and Madinah decreased 0.8%.
These variations reflect local economic conditions, government investment priorities, and demographic shifts driven by Vision 2030 initiatives concentrating development in major urban centers.
What are the average prices for different property types?
Property type pricing in Saudi Arabia reflects distinct market segments, with apartments and villas commanding different price points based on size, location, and target demographics.
| Property Type | Typical Size (sqm) | Price Range (SAR/sqm) | Market Notes |
|---|---|---|---|
| Small Apartment | 30-65 | 4,200-15,000 | High demand, 151% increase in deals |
| Large Apartment | 66-150+ | 4,200-15,000 | Steady demand in prime areas |
| Townhouse | 150-300 | 5,000-9,000 | 6-9% annual growth mid-market |
| Villa | 200-500+ | 5,707-10,000 | Luxury segment, strongest growth |
| Land Plot | Varies | Variable | 5.3% price increase Q1 2025 |
Small apartments (30-65 square meters) have become particularly popular, with transactions increasing 151% as young professionals and small families seek affordable urban housing options.
What's the typical surface area and price per square meter comparison?
Surface area patterns in Saudi Arabia's residential market reflect changing lifestyle preferences and demographic shifts, with smaller units gaining significant traction in major cities.
Apartments typically range from 35-150+ square meters, with small units (30-65 sqm) experiencing exceptional demand growth of 151% in transactions. These compact units appeal to young professionals, small families, and investors seeking rental income opportunities.
Villas maintain larger footprints of 200-500+ square meters, catering to established families and high-net-worth individuals. Townhouses occupy the middle ground at 150-300 square meters, showing consistent 6-9% annual growth in the mid-market segment.
Price-per-square-meter efficiency varies by city: Riyadh offers premium pricing but higher potential returns, Jeddah provides coastal lifestyle value, while Dammam presents more affordable entry points for investors and residents alike.
What additional fees, taxes, and closing costs should I expect?
Property acquisition costs in Saudi Arabia involve several mandatory fees and taxes that buyers must factor into their total investment calculations beyond the purchase price.
The primary cost is the Real Estate Transaction Fee of 5% of the property value, paid by the buyer. Mortgage registration fees add approximately 1% of the loan amount, while legal fees typically range 1-2% of the property value.
Agent fees amount to 2.5% of the property value but are paid by the seller, not the buyer. Total buyer costs typically reach 6-7% of the property value when combining all mandatory fees and professional services.
Ongoing costs are relatively minimal: there's no annual property tax for owner-occupied homes, though investment properties are subject to Zakat at 2.5% for Saudi nationals. Non-residents face 20% rental income tax and 20% capital gains tax on property sales.
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How do mortgage options and down payment requirements work?
Mortgage accessibility in Saudi Arabia varies significantly based on residency status, with distinct requirements and options for Saudi nationals, expatriate residents, and foreign investors.
Saudi nationals and expatriate residents with valid Iqama can access mortgages with down payments of 15-30%, achieving loan-to-value ratios of 70-85%. Both Islamic (Murabaha) and conventional mortgage products are available, with Islamic financing being more commonly preferred.
Expatriate eligibility requires a valid Iqama, stable income meeting minimum salary thresholds (varying by bank), and employment with approved companies. The mortgage application process and terms are similar to those for Saudi nationals.
Foreign non-residents face significant restrictions: direct property ownership is generally prohibited except in specific designated areas, requiring establishment of a local corporation. Mortgage financing is unavailable for non-residents, making cash purchases the only viable option for foreign investors.
How have house prices changed over the last 1 year and 5 years?
Saudi Arabia's residential property market has demonstrated robust recovery and growth, particularly accelerating in recent years following earlier market corrections.
Over the past year, national residential prices increased 4.3% year-on-year in Q1 2025, with Riyadh leading growth at 8.4% for apartments and 12-15% for luxury villas. This growth reflects strong domestic demand and continued government investment in infrastructure.
The five-year trajectory shows remarkable recovery from 2019-2024, with cumulative price growth of 26.7% (17.4% inflation-adjusted) from 2021-2024. This rebound followed earlier market declines and represents the strongest sustained growth period in recent years.
Vision 2030 initiatives, economic diversification, and mega-project developments have fundamentally transformed market dynamics, creating sustained demand that supports continued price appreciation across major urban centers.
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What are the forecasts for real estate prices over the next 1, 5, and 10 years?
Saudi Arabia's residential real estate market is positioned for sustained growth through 2035, driven by demographic trends, government initiatives, and economic diversification efforts.
Short-term forecasts for the next year indicate continued moderate growth, with the residential sector expected to outperform commercial and agricultural real estate segments. Market fundamentals remain strong despite global economic uncertainties.
Medium-term projections show a compound annual growth rate (CAGR) of 8% from 2024-2029, with the market size reaching SAR 381 billion by 2029. This growth reflects sustained government investment and increasing domestic demand.
Long-term forecasts through 2033 project the residential real estate market reaching SAR 491 billion, representing a CAGR of 6.9% from 2025-2033. These projections assume continued Vision 2030 implementation, stable economic growth, and sustained population increases in major urban centers.
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 does the housing market compare with similar regional cities?
Saudi Arabia's residential market positioning within the Gulf region reflects its unique combination of large domestic population, government-driven development, and emerging expat-friendly policies.
| City/Country | Price Range (USD/sqm) | Key Market Characteristics |
|---|---|---|
| Riyadh | 1,300-4,000 | Strong growth, Vision 2030 projects, luxury demand |
| Jeddah | 1,100-3,700 | Coastal lifestyle, mid-range focus, rental market |
| Dammam | 1,600-2,500 | Affordable entry point, young professionals |
| Dubai (UAE) | 2,000-10,000+ | Luxury focus, expat-driven, tourism component |
| Abu Dhabi (UAE) | 1,500-5,000+ | Government stability, luxury segment |
| Doha (Qatar) | 1,500-4,000+ | World Cup legacy, expat-dominated |
Saudi Arabia offers more affordable entry points compared to Dubai while providing similar growth potential, making it attractive for both regional and international investors seeking value opportunities.
What are example purchase prices for different budget levels?
Property purchase examples across budget categories illustrate the diverse opportunities available in Saudi Arabia's residential market for different investor profiles and family needs.
Affordable options range from SAR 250,000-500,000, typically covering small apartments in suburban areas of Riyadh, Jeddah, or Dammam. These properties appeal to first-time buyers, young professionals, and investors seeking rental income from high-demand compact units.
Mid-range properties priced SAR 500,000-1,500,000 include larger apartments, townhouses, or small villas in established neighborhoods. This segment offers the best balance of space, location, and potential appreciation for growing families and serious investors.
Luxury properties exceeding SAR 1,500,000 encompass large villas, premium apartments, and prime-location properties. These investments target high-net-worth individuals, executive expatriates, and investors focused on capital appreciation in prestigious locations.
Which areas are expensive, budget-friendly, and have good investment potential?
Saudi Arabia's residential market geography presents distinct investment opportunities across price points, with certain areas commanding premium pricing while others offer value and emerging potential.
Expensive areas include Riyadh's Northern districts and Al Malqa, which offer high rental yields and superior infrastructure. Jeddah's Corniche and prime central areas command premium pricing due to coastal location and established luxury amenities.
Budget-friendly options include Dammam's Al Faisaliyah district, popular with young professionals and offering affordable entry points. Suburban areas in South Riyadh and outer Jeddah provide cost-effective opportunities for both residents and investors.
Emerging investment areas show strong potential: Riyadh's Al Malqa and New Murabba benefit from mega-project development, while the Sports Boulevard area promises infrastructure improvements. Abha's Al Soudah region offers tourism-driven vacation home opportunities, and Dammam's Al Faisaliyah shows gentrification potential with new project developments.
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What are the smartest and most profitable investment options today?
Investment strategy optimization in Saudi Arabia's residential market depends on your primary objective, whether for personal residence, rental income, or capital appreciation.
For owner-occupiers, suburban or emerging districts with solid infrastructure and amenities offer the best value combination of affordability and lifestyle quality. These areas benefit from government development while avoiding premium location pricing.
Long-term rental strategies perform best with small apartments in major cities, where high demand and low vacancy rates support consistent income. Riyadh averages 5.3% rental yields, with Al Malqa offering higher returns due to its premium location and tenant profile.
Short-term rental opportunities exist in tourist areas like Al Soudah and Abha, where vacation homes can capitalize on domestic tourism growth and seasonal demand patterns.
Capital appreciation strategies should focus on upcoming districts benefiting from new infrastructure and government projects, particularly areas connected to Vision 2030 mega-projects where long-term value creation is most likely.
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 residential real estate market presents compelling opportunities as of June 2025, with average prices ranging from SAR 4,200-5,824 per square meter across major cities.
The market's 4.3% annual growth, combined with Vision 2030 development projects and strong demand for small apartments, creates favorable conditions for both investors and residents seeking property opportunities in the Kingdom.
Sources
- Real Estate Saudi - Cost of Living in Saudi Arabia
- Sands of Wealth - Saudi Arabia Price Forecasts
- Global Property Guide - Saudi Arabia Price History
- Asharq Al-Awsat - Saudi Real Estate Small Units Growth
- Arab News - Saudi Real Estate Q1 2025
- Property Saudi Arabia - Property Taxes and Fees
- Global Property Guide - Saudi Arabia Taxes and Costs
- Real Estate Saudi - Mortgage Guide for Expats
- Arab MLS - Foreigners Mortgage in Saudi Arabia
- LinkedIn - Saudi Arabia Real Estate Market Report 2025