Authored by the expert who managed and guided the team behind the Saudi Arabia Property Pack
Everything you need to know before buying real estate is included in our Saudi Arabia Property Pack
As of September 2025, Saudi Arabia's real estate market shows strong momentum driven by Vision 2030 initiatives and economic diversification. The Saudi property market offers attractive entry points for both investors and residents, with prices significantly lower than neighboring UAE markets while delivering solid rental yields averaging 6-9%.
If you want to go deeper, you can check our pack of documents related to the real estate market in Saudi Arabia, based on reliable facts and data, not opinions or rumors.
The national average property price in Saudi Arabia ranges from SAR 4,200-5,824 per square meter, with Riyadh leading at SAR 4,971-5,824/sqm and luxury areas reaching SAR 15,000/sqm.
Property prices have risen 4.3% nationwide in the past year, with some Riyadh luxury segments seeing 15% increases, while the market is projected to reach SAR 491 billion by 2033.
| City | Apartment Price (SAR/sqm) | Villa Price (SAR/sqm) | Annual Growth Rate |
|---|---|---|---|
| Riyadh | 4,971 | 5,824 | 8-15% |
| Jeddah | 4,200-4,500 | 5,707 | 6-12% |
| Dammam | 3,800-4,200 | 4,500-5,200 | 4-8% |
| Madinah | 3,500-4,000 | 4,200-4,800 | 5-9% |
| Prime Areas (All Cities) | 8,500-15,000 | 10,000-22,000 | 12-18% |
What's the current average property price in Saudi Arabia?
The average property price in Saudi Arabia ranges from SAR 4,200 to SAR 5,824 per square meter as of September 2025.
Riyadh commands the highest prices nationwide, with apartments averaging SAR 4,971 per square meter and villas reaching SAR 5,824 per square meter. Prime and luxury areas in Riyadh can surge to SAR 15,000 per square meter, particularly in districts like the Diplomatic Quarter and Al Olaya.
Jeddah follows as the second most expensive market, with apartments averaging SAR 4,200-4,500 per square meter and villas at SAR 5,707 per square meter. Prime coastal properties in Jeddah reach SAR 14,000 per square meter, reflecting the city's status as a major commercial hub and gateway to Mecca.
Dammam and Madinah offer more affordable options, with prime areas ranging from SAR 8,500-9,500 per square meter and suburban locations dropping to SAR 5,500-6,000 per square meter. These cities present excellent entry points for first-time buyers and investors seeking higher rental yields.
The national average reflects strong market fundamentals driven by Vision 2030 infrastructure projects, population growth, and economic diversification away from oil dependency.
How do prices vary between different property types?
Property prices in Saudi Arabia vary significantly based on type, size, and target market segment.
Small apartments (30-65 square meters) represent the most liquid segment of the market, with prices ranging from SAR 4,200 to SAR 15,000 per square meter depending on location. These properties experience the highest transaction volumes and rental demand, making them ideal for investors seeking consistent income streams.
Large apartments (66-150+ square meters) command similar per-square-meter rates but offer better value for families and long-term residents. Prime area pricing remains consistent across apartment sizes, though larger units often feature premium finishes and amenities that justify higher total purchase prices.
Townhouses (150-300 square meters) typically range from SAR 5,000 to SAR 9,000 per square meter and represent the strongest mid-market growth segment. These properties appeal to Saudi families and affluent expatriates seeking more space and privacy than apartments provide.
Villas (200-500+ square meters) command the highest prices at SAR 5,707 to SAR 10,000 per square meter, with luxury villas experiencing 12-15% annual price growth in Riyadh alone. The villa segment attracts high-net-worth individuals and represents the fastest-growing luxury property category.
Land plots show variable pricing depending on location, zoning, and development potential, with land values increasing 5.3% in early 2025 due to strong construction activity and government development initiatives.
What are the most expensive areas and budget-friendly locations?
Saudi Arabia's most expensive residential areas cluster in Riyadh's central and northern districts, commanding premium prices for their strategic locations and amenities.
| Area | Apartments (SAR/sqm) | Villas (SAR/sqm) | Target Residents |
|---|---|---|---|
| Diplomatic Quarter (Riyadh) | 12,000-18,000 | 15,000-22,000 | Diplomats, International Executives |
| Al Olaya (Riyadh) | 10,000-15,000 | 12,000-18,000 | Business Professionals, CEOs |
| Al Malqa (Riyadh) | 8,000-13,500 | 10,000-15,000 | Affluent Families, Expats |
| Al Sulimaniyah (Riyadh) | 9,000-12,000 | 11,000-14,000 | Government Officials, High Earners |
| Al Sahafa (Riyadh) | 7,000-9,500 | 8,500-11,000 | Young Professionals, Emerging Wealth |
| Al Nakheel (Riyadh) | 7,200-10,300 | 9,000-13,000 | Wealthy Local Families |
Current hotspots experiencing exceptional appreciation include North Riyadh and Al Malqa, with year-on-year price increases reaching 18% in 2025. Areas surrounding the future New Murabba development and planned Riyadh Metro stations represent prime opportunities for capital appreciation.
Budget-friendly locations offering strong value include Dammam Al Faisaliyah and Abha Al Soudah, where infrastructure development and tourism initiatives create upside potential. South Riyadh suburbs offer apartments from SAR 250,000-350,000 for 50 square meter units, providing accessible entry points for first-time buyers.
Emerging areas near mega-project developments offer the best combination of affordability and growth potential, particularly for investors with longer investment horizons.
How do prices change depending on the city?
Property prices vary significantly across Saudi Arabia's major cities, reflecting local economic conditions, development activity, and demographic trends.
Riyadh maintains the highest property prices nationwide, driven by its status as the political and business capital. The city attracts government officials, multinational corporations, and Vision 2030 project headquarters, creating sustained demand for premium housing. Rental yields in Riyadh average 6-9%, with luxury segments achieving the highest returns due to limited supply and strong expat demand.
Jeddah prices average approximately 12% lower than Riyadh, offering better value for coastal lifestyle seekers. The city's role as the commercial gateway to Mecca and major Red Sea port supports steady property demand. Central neighborhoods command premium prices, while suburban areas provide significant affordability advantages for families and young professionals.
Dammam represents the most affordable major city option, popular with young buyers and investors seeking entry-level opportunities. The Eastern Province's oil industry presence supports employment and housing demand, though prices remain substantially below Riyadh and Jeddah levels. This affordability gap creates opportunities for investors seeking higher rental yields and capital appreciation potential.
Secondary cities like Madinah, Abha, and Taif offer the lowest purchase prices but also face more limited liquidity and resale markets. These locations work best for owner-occupiers and investors focused on long-term rental income rather than quick capital gains.
It's something we develop in our Saudi Arabia property pack.
What's the typical price difference based on property size?
Property size significantly impacts total purchase costs in Saudi Arabia, though per-square-meter pricing remains relatively consistent within similar quality segments.
Small apartments (30-65 square meters) typically cost SAR 126,000 to SAR 975,000 depending on location and finish quality. These compact units maximize affordability while providing access to prime locations, making them popular with young professionals and investors seeking rental income properties.
Medium-sized apartments (66-120 square meters) range from SAR 350,000 to SAR 1.8 million, offering the best balance of space and cost for most buyers. These properties appeal to small families and provide good rental demand across all major cities.
Large apartments and penthouses (120+ square meters) command SAR 650,000 to SAR 3.5 million, targeting affluent buyers seeking luxury amenities and prime locations. These properties often include premium features like private terraces, high-end finishes, and exclusive building amenities.
Mid-sized villas (200-300 square meters) typically cost SAR 1.2 to SAR 2.9 million in prime areas, while larger villas (350+ square meters) can exceed SAR 5-6.5 million in exclusive districts like Riyadh's Al Olaya or Diplomatic Quarter.
Budget suburban properties offer apartments from SAR 250,000-500,000, providing accessible homeownership opportunities for Saudi nationals and long-term residents. These areas often feature newer construction and family-friendly amenities despite lower per-square-meter costs.
Don't lose money on your property in Saudi Arabia
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What are the extra costs beyond the listed price?
Property buyers in Saudi Arabia face several additional costs beyond the advertised purchase price, typically totaling 6-8% of the property value.
The Real Estate Transaction Fee represents the largest additional cost at 5% of the purchase price, reduced from 10% in April 2025 to stimulate market activity. This government fee applies to all property transfers and cannot be avoided or negotiated.
Registration fees range from SAR 2,000 to SAR 5,000 depending on property value and location, covering official documentation and title transfer processes. Property valuation fees add SAR 3,000 to SAR 10,000 when required by lenders or buyers seeking independent price confirmation.
Legal fees typically cost 1-2% of property value and ensure proper due diligence, contract review, and closing procedures. These fees provide essential protection against legal issues and ensure compliance with Saudi property laws.
Value Added Tax (VAT) at 15% applies to services including real estate agent fees, property management, and maintenance costs. While VAT doesn't apply to the property purchase itself, it affects ongoing ownership expenses and professional services.
Ongoing tax obligations include no property tax for owner-occupiers, but Saudi nationals pay 2.5% Zakat on property value. Non-resident investors face 20% rental income tax and 20% capital gains tax on property sales, while companies pay corporate rates on real estate profits.
How do mortgages and financing options affect total costs?
Mortgage financing significantly impacts the total cost of property ownership in Saudi Arabia, with terms varying based on residency status and property type.
Down payment requirements range from 15-30% of property value, with higher percentages typically required for non-Saudi buyers and luxury properties. Most lenders require 20-25% down payments for standard residential properties, while investment properties may require 30% or more.
Loan-to-value ratios reach 70-85% for qualified borrowers, allowing substantial leverage for property purchases. Saudi nationals and residents with valid Iqama enjoy the most favorable lending terms, while non-residents face limited financing options and higher down payment requirements.
Mortgage rates in 2025 range from 2-6% based on Islamic profit-sharing principles rather than traditional interest. Rates vary by lender, property type, loan amount, and borrower profile, with government employees and established professionals often securing the most competitive terms.
Financing costs include application fees (SAR 1,000-5,000), valuation fees (SAR 3,000-10,000), and ongoing administration charges. Islamic financing structures may include profit-sharing arrangements rather than fixed interest payments, potentially offering more favorable long-term costs.
Government housing programs provide additional financing support for Saudi nationals, including subsidized rates and reduced down payment requirements for first-time buyers. These programs significantly improve affordability for qualified citizens purchasing primary residences.
Can you give example purchase prices for common property types?
Real-world property examples demonstrate the range of investment opportunities available across Saudi Arabia's diverse market segments.
| Property Type | Location | Size | Price Range (SAR) |
|---|---|---|---|
| Budget Apartment | South Riyadh Suburb | 50 sqm | 250,000-350,000 |
| Mid-Range Apartment | Al Sahafa, Riyadh | 100 sqm | 500,000-950,000 |
| Premium Apartment | Al Olaya, Riyadh | 120 sqm | 1,200,000-1,800,000 |
| Family Townhouse | Madinah Road, Jeddah | 180 sqm | 1,200,000-1,500,000 |
| Luxury Villa | Al Olaya, Riyadh | 350 sqm | 5,000,000-6,500,000 |
| Coastal Property | Corniche, Jeddah | 150 sqm | 2,100,000-2,800,000 |
Budget apartments in developing suburbs offer excellent entry points for first-time buyers and investors. These properties typically feature modern construction, basic amenities, and strong rental demand from young professionals and small families.
Mid-range apartments in established neighborhoods provide the best balance of location, amenities, and appreciation potential. Areas like Al Sahafa offer proximity to business districts while maintaining relatively affordable pricing compared to premium locations.
Luxury properties in prime districts target high-net-worth individuals and international executives. These properties feature premium finishes, exclusive amenities, and locations that command substantial rental premiums and strong resale values.
It's something we develop in our Saudi Arabia property pack.
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 buying choices for different investment goals?
Investment strategy should align with specific goals, timeframe, and risk tolerance in Saudi Arabia's evolving property market.
For owner-occupiers seeking primary residences, suburban and emerging districts offer the best balance of cost, space, and lifestyle amenities. Areas near planned infrastructure projects provide long-term appreciation potential while offering larger properties at affordable prices. Focus on neighborhoods with developing schools, hospitals, and retail centers to ensure lifestyle convenience.
Short-term rental investors should target vacation and tourist areas like Abha or small apartments in prime business districts. Domestic tourism and business travel create consistent demand for furnished rentals, particularly during Hajj seasons and government conference periods. Properties near airports, business centers, and tourist attractions perform best for short-term rental strategies.
Long-term rental investment success centers on 1-2 bedroom apartments in downtown Riyadh, Al Malqa, or Jeddah's mid-market areas. These properties achieve high rental yields with low vacancy rates due to consistent demand from young professionals, small families, and long-term expatriates. Focus on properties with modern amenities and proximity to employment centers.
Capital appreciation strategies should emphasize early entry into mega-project areas including New Murabba, northern Riyadh developments, and coastal Jeddah expansion zones. Prioritize properties near confirmed infrastructure projects, established developer reputations, and areas benefiting from Vision 2030 initiatives. These investments require longer holding periods but offer substantial appreciation potential as projects mature.
Diversified investors might combine suburban family properties for steady rental income with smaller units in appreciation zones for capital growth, creating balanced portfolios addressing multiple market segments and risk profiles.
How have property prices changed in recent years?
Saudi Arabia's property market has experienced significant growth over the past year and sustained appreciation over the five-year period ending in 2025.
One-year price changes show 4.3% nationwide appreciation, with substantial variation by market segment and location. Riyadh's luxury segments led growth with increases up to 15%, driven by Vision 2030 project demand and limited luxury inventory. Jeddah showed mixed performance with coastal properties outperforming suburban areas, while Dammam experienced moderate but consistent growth across all property types.
The five-year cumulative performance demonstrates robust market recovery with approximately 26.7% total price appreciation nationwide. After adjusting for inflation, real property appreciation reached 17.4%, indicating genuine wealth creation rather than currency devaluation effects. This performance represents the strongest sustained growth period since 2019, reflecting improved economic fundamentals and government reform initiatives.
Market drivers include Vision 2030 infrastructure spending, population growth from economic diversification, and improved access to mortgage financing for Saudi nationals. The 2025 reduction in transaction fees from 10% to 5% further stimulated activity levels and price appreciation across all market segments.
Regional variation shows Riyadh consistently outperforming other cities, with prime districts experiencing the strongest growth. Secondary cities lagged national averages but showed acceleration in 2024-2025 as affordability gaps attracted investor interest and government spending reached smaller urban centers.
The market has transitioned from recovery mode following previous economic challenges to genuine growth driven by structural economic changes and demographic trends supporting sustained demand.
What's the forecast for property prices in Saudi Arabia?
Property price forecasts for Saudi Arabia show continued growth across multiple timeframes, driven by structural economic transformation and sustained government investment.
Next year projections indicate continued moderate growth, particularly in Riyadh and areas directly linked to Vision 2030 projects. Infrastructure completion, job creation from economic diversification, and population growth support sustained demand across residential segments. Price appreciation of 5-8% appears realistic for established markets, with premium segments potentially achieving 10-12% growth.
Five-year forecasts suggest a compound annual growth rate (CAGR) of approximately 8%, driving total market size to SAR 381 billion by 2029. This growth reflects sustained Vision 2030 implementation, continued economic diversification, and demographic trends including Saudi youth employment initiatives and selective international migration programs.
Ten-year projections estimate market expansion to SAR 491 billion by 2033, representing substantial wealth creation for property owners. Mega-project completion, economic transformation success, and regional positioning as a business hub support continued double-digit appreciation in premium and strategic locations, while secondary markets achieve more moderate but steady growth.
Risk factors include global economic conditions, oil price volatility, and execution challenges for major development projects. However, government commitment to economic transformation and substantial financial reserves support optimistic long-term projections despite potential short-term volatility.
Regional leadership in tourism, technology, and renewable energy could drive property demand beyond current projections, particularly in cities hosting major Vision 2030 initiatives and international business relocations.
How do Saudi Arabia property prices compare globally?
Saudi Arabia offers compelling value compared to regional competitors and global property markets, combining affordability with strong growth potential.
Regional comparison shows Saudi property significantly more affordable than UAE markets while offering similar growth prospects. Riyadh prices (USD 1,300-4,000 per square meter) compare favorably to Dubai (USD 2,000-10,000+ per square meter) and Abu Dhabi (USD 1,500-5,000+ per square meter), despite similar economic fundamentals and government development spending.
Rental yields in Saudi Arabia average 6-9%, substantially higher than most Western markets and competitive with other emerging economies. This yield advantage, combined with capital appreciation potential, creates attractive total returns for property investors compared to mature markets in Europe, North America, and Asia-Pacific.
Jeddah and Dammam offer even greater value propositions, with prices 15-30% below Riyadh levels while maintaining access to major employment centers, infrastructure, and lifestyle amenities. These cities provide entry points comparable to secondary markets in developing countries while offering first-world infrastructure and governance standards.
Global comparison highlights Saudi Arabia's unique position as an emerging market with substantial government resources, strategic geographic location, and ambitious transformation agenda. Unlike many emerging markets facing infrastructure or governance challenges, Saudi Arabia combines growth potential with financial stability and large-scale development capabilities.
Currency stability, government fiscal strength, and improving international business environment enhance Saudi Arabia's attractiveness compared to other emerging markets that may offer lower entry prices but higher political and economic risks.
It's something we develop in our Saudi Arabia property pack.
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 presents compelling opportunities for both investors and residents seeking affordable entry into a rapidly transforming economy.
With national average prices ranging SAR 4,200-5,824 per square meter and strong government commitment to Vision 2030 development projects, the market offers excellent value compared to regional competitors while delivering solid rental yields and appreciation potential.