What are the price trends and forecasts in Jeddah right now? (2026)

Authored by the expert who managed and guided the team behind the Saudi Arabia Property Pack

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SANDS OF WEALTH

A team specialized in real estate investing in MENA countries (Morocco, UAE, Oman, etc.)

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Jeddah. If you’d like to learn more about us, you can check our presentation page.

What are the current property price trends in Jeddah as of 2026?

Jeddah property prices in 2026 are moving in a selective way, because practical apartments in northern and family districts are still supported, while expensive villas and older homes are facing more pressure.

The important point is that the Jeddah residential property market is not following one simple trend, because buyers are comparing location, building quality, parking, maintenance and mortgage affordability much more carefully than before.

Official Saudi data shows a softer national market in early 2026, but Jeddah looks more resilient than many buyers might expect because Makkah Region, where Jeddah is located, recorded a much smaller decline than Riyadh Region.

What is the average house price in Jeddah as of 2026?

As of 2026, the estimated average house price in Jeddah is about SAR 1.25 million, which is roughly USD 333,000 or EUR 287,000 for a blended residential property across apartments, villas and townhouse-style homes.

This means the estimated average price per square meter for residential property in Jeddah in 2026 is about SAR 4,900 per m², or roughly USD 1,300 and EUR 1,125 per m².

In practice, about 80% of normal residential purchases in Jeddah in 2026 are likely to fall between SAR 550,000 and SAR 2.7 million, which is about USD 147,000 to USD 720,000 or EUR 126,000 to EUR 620,000.

How much have property prices increased in Jeddah over the past 12 months?

Residential property prices in Jeddah in 2026 are estimated to be up by about 1% to 3% over the past 12 months, even though Saudi Arabia’s national residential index was weaker.

The realistic 12-month range is wider by property type, with good apartments in Jeddah up around 3% to 5%, townhouse-style homes up around 2% to 4%, and ordinary villas roughly flat or down by up to 2%.

The single biggest reason is affordability, because many Jeddah buyers still want to own a home, but more of them can realistically buy a well-located apartment than a large villa.

Which neighborhoods have the fastest rising property prices in Jeddah as of 2026?

As of 2026, the three fastest-rising residential neighborhoods in Jeddah are likely Obhur Al Shamaliyah, Al Marjan and Al Hamdaniyah.

Our estimate is that Obhur Al Shamaliyah residential prices are up about 5% to 8%, Al Marjan is up about 5% to 8%, and Al Hamdaniyah is up about 4% to 6% over the past year.

The main reason is that these Jeddah neighborhoods match what buyers want in 2026, which is either Red Sea lifestyle, northern growth, newer buildings or a more affordable family home.

By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Jeddah.

Which property types are increasing faster in value in Jeddah as of 2026?

As of 2026, the estimated ranking by value growth in Jeddah is apartments first, townhouses second, prime villas third and ordinary villas last.

The top-performing property type in Jeddah is the modern apartment, with annual appreciation of about 3% to 5% for well-located units in newer buildings.

Apartments are outperforming because Jeddah families, young buyers and investors can still afford them, while villas need a much larger budget and a heavier mortgage payment.

Finally, if you’re interested in a specific property type, you will find our latest analyses here:

• How much should you pay for a house in Jeddah?
• How much should you pay for an apartment in Jeddah?

What is driving property prices up or down in Jeddah as of 2026?

As of 2026, the three biggest drivers of Jeddah property prices are northern urban expansion, mortgage affordability and the city’s role as the Red Sea gateway to Makkah.

The strongest upward pressure is northern expansion, because areas around Obhur, Al Marjan, Al Basateen, Al Muhammadiyah and Al Hamdaniyah are absorbing families who want newer housing and better access.

If you want to understand these factors at a deeper level, you can read our latest property market analysis about Jeddah here.

What is the property price forecast for Jeddah in 2026?

The 2026 forecast for Jeddah residential property prices is positive but not aggressive, because local demand is real but buyers remain sensitive to price and financing costs.

The simplest way to read the Jeddah property forecast for 2026 is this: good apartments should rise, ordinary villas should lag, and the best locations should perform better than the city average.

How much are property prices expected to increase in Jeddah in 2026?

As of 2026, residential property prices in Jeddah are expected to increase by about 2% to 4% for the full year, with a base case near 3%.

The realistic forecast range from different market views is roughly 1% to 5%, because some analysts focus on weaker national prices while others focus on Jeddah’s stronger local demand.

The main assumption behind most Jeddah property price forecasts is that Saudi non-oil growth stays positive, mortgage rates ease only gradually, and new supply is released in a controlled way.

We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Jeddah.

Which neighborhoods will see the highest price growth in Jeddah in 2026?

As of 2026, the Jeddah neighborhoods expected to see the highest price growth are Obhur Al Shamaliyah, Al Marjan, Al Basateen, Al Muhammadiyah, Al Naeem, Al Zahra, Al Salamah and Al Hamdaniyah.

Expected 2026 price growth is about 5% to 7% in Obhur Al Shamaliyah and Al Marjan, 4% to 6% in Al Basateen, Al Muhammadiyah, Al Zahra, Al Naeem and Al Hamdaniyah, and 3% to 5% in Al Salamah.

The main catalyst is the same across these areas: buyers want newer homes, easier access to north Jeddah, stronger rental demand and a better balance between price and quality.

Al Balad could surprise with higher-than-expected growth if regeneration becomes more visible, but it remains a higher-risk Jeddah neighborhood because heritage rules and renovation costs matter.

By the way, we’ve written a blog article detailing what are the current best areas to invest in property in Jeddah.

What property types will appreciate the most in Jeddah in 2026?

As of 2026, apartments are expected to appreciate the most in Jeddah, especially practical 2-bedroom and 3-bedroom units in well-managed buildings.

The projected 2026 appreciation for good apartments in Jeddah is about 4% to 6%, while the citywide blended residential forecast is closer to 2% to 4%.

The main demand trend is simple: many Jeddah households want ownership, but apartment budgets are easier to finance than villa budgets.

Ordinary villas are expected to underperform in Jeddah in 2026 because high prices, renovation needs and larger mortgages reduce the number of buyers.

How will interest rates affect property prices in Jeddah in 2026?

As of 2026, interest rates are likely to limit Jeddah property price growth rather than cause a sharp fall, because demand is still present but monthly payments remain important.

The Saudi Central Bank repo rate was 4.25% in mid-June 2026, and mortgage rates in Saudi Arabia are expected to ease only slowly if global rate conditions continue improving.

A 1% fall in mortgage rates can make a Jeddah home feel much more affordable for monthly-payment buyers, while a 1% rise can quickly reduce what families can afford and put pressure on prices.

You can also read our latest update about mortgage and interest rates in Saudi Arabia.

What are the biggest risks for property prices in Jeddah in 2026?

As of 2026, the three biggest risks for Jeddah property prices are too much new supply, high mortgage costs and regional geopolitical uncertainty.

The risk with the highest probability is oversupply in some apartment districts, because developers are adding stock while buyers still prefer only the best-located and best-managed buildings.

We actually cover all these risks and their likelihoods in our pack about the real estate market in Jeddah.

Is it a good time to buy a rental property in Jeddah in 2026?

As of 2026, it can be a good time to buy a rental property in Jeddah, but mainly if the buyer chooses a well-located apartment instead of an expensive villa.

The strongest argument for buying now is that good Jeddah apartments can still offer realistic gross rental yields around 6% to 8% in practical family districts.

The strongest argument for waiting is that some areas may receive more supply, which could create better prices or better choices for patient buyers.

If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Jeddah.

You’ll also find a dedicated document about this specific question in our pack about real estate in Jeddah.

Where will property prices be in 5 years in Jeddah?

Over five years, Jeddah property prices should be supported by population growth, infrastructure upgrades, Red Sea lifestyle demand and Saudi Arabia’s wider housing policy.

Still, the five-year forecast is not the same for every property, because a modern apartment in Al Salamah has a very different risk profile from an old villa priced too high in a weaker location.

What is the 5-year property price forecast for Jeddah as of 2026?

As of 2026, residential property prices in Jeddah are expected to be about 22% to 32% higher over the next five years, with a base case near 27% by 2031.

The conservative five-year forecast for Jeddah is about 15% growth, while the optimistic forecast is about 40% if infrastructure, foreign ownership and tourism demand are stronger than expected.

This points to a projected average annual appreciation rate of about 4% to 6% for the Jeddah residential property market over the next five years.

The key assumption is that Saudi non-oil growth stays healthy and Jeddah continues to benefit from housing demand, port activity, pilgrimage services and northern expansion.

Which areas in Jeddah will have the best price growth over the next 5 years?

The three Jeddah areas expected to have the best price growth over the next five years are Obhur Al Shamaliyah, Al Marjan and Al Hamdaniyah.

Projected five-year cumulative growth is about 35% to 45% in Obhur Al Shamaliyah and Al Marjan, and about 30% to 40% in Al Hamdaniyah if infrastructure and housing demand continue improving.

This is similar to the shorter forecast, but the five-year view gives more weight to infrastructure delivery, family migration and the gradual maturity of northern Jeddah.

The currently undervalued area with the best five-year outperformance potential is Al Hamdaniyah, because it still offers more affordable entry prices than prime coastal districts.

What property type will give the best return in Jeddah over 5 years as of 2026?

As of 2026, mid-market apartments are expected to give the best total return in Jeddah over the next five years.

The projected five-year total return for good Jeddah apartments is about 55% to 75%, including both price growth and rental income before costs.

The main structural trend is that Jeddah’s buyer and tenant base is moving toward practical, well-located apartments because these homes are easier to finance, rent and resell.

The best balance of return and lower risk is likely a modern apartment in Al Salamah, Al Naeem, Al Zahra, Al Hamdaniyah or selected north Jeddah districts.

How will new infrastructure projects affect property prices in Jeddah over 5 years?

The three major infrastructure and development projects most likely to affect Jeddah property prices over five years are the Jeddah Metro revival, Jeddah Central and logistics upgrades around Jeddah Islamic Port.

In Jeddah, properties near completed and useful infrastructure can often gain a 5% to 12% price premium, but the premium usually appears only when delivery becomes visible.

The neighborhoods most likely to benefit are Al Naeem, Al Salamah, Al Hamdaniyah, Obhur, Al Marjan, Al Muhammadiyah, Al Basateen and selected central areas near Jeddah Central.

How will population growth and other factors impact property values in Jeddah in 5 years?

Jeddah’s population growth should add steady support to property values over the next five years, with a likely demand effect of a few extra percentage points in family housing areas.

The strongest demographic shift will be household formation among younger Saudi families and working expatriates who need practical apartments near schools, roads, hospitals and jobs.

Domestic migration to Jeddah and international employment tied to services, logistics, tourism and pilgrimage should support rents and resale values in accessible neighborhoods.

The biggest winners should be apartments and townhouse-style homes in Al Salamah, Al Naeem, Al Zahra, Al Hamdaniyah, Al Muhammadiyah, Al Basateen and north Jeddah growth zones.

We made this infographic to show you how property prices in Saudi Arabia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.

What is the 10 year property price outlook in Jeddah?

The 10-year outlook for Jeddah property prices is positive, but it depends heavily on infrastructure delivery, housing affordability and Saudi Arabia’s wider economic diversification.

For a normal buyer, the most useful idea is not that every Jeddah property will rise, but that the right property in the right area has a better chance of compounding steadily.

What is the 10-year property price prediction for Jeddah as of 2026?

As of 2026, residential property prices in Jeddah are expected to be about 55% to 85% higher over the next 10 years, with a base case near 70% by 2036.

The conservative 10-year forecast for Jeddah is about 35% to 45% growth, while the optimistic forecast is about 100% if foreign ownership, tourism, transit and income growth all work strongly in the city’s favor.

This means the projected average annual appreciation rate for Jeddah residential property is about 4.5% to 6% over the next 10 years.

The biggest uncertainty is whether Jeddah can deliver enough high-quality homes and infrastructure without creating too much supply in the same neighborhoods at the same time.

What long-term economic factors will shape property prices in Jeddah?

The three long-term economic factors that will shape Jeddah property prices are Saudi non-oil diversification, the city’s pilgrimage and logistics economy, and the quality of infrastructure delivery.

The most positive long-term factor is Jeddah’s gateway role, because the city connects Red Sea trade, Makkah access, tourism, family housing and major services in one market.

The greatest structural risk is affordability, because Jeddah property prices can only keep rising if normal buyers and tenants can still pay for the homes being built.

You’ll also find a much more detailed analysis in our pack about real estate in Jeddah.

What sources have we used to write this blog article?

Whether it’s in our blog articles or the market analyses included in our property pack about Jeddah, we always rely on the strongest methodology we can and we don’t throw out numbers at random.

We also aim to be fully transparent, so below we’ve listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.

Source used	Why we trust it	How we used it
GASTAT Real Estate Price Index Q1 2026	It is Saudi Arabia’s official statistical source for real estate price data.	We used it as the national and regional benchmark for 2026 price momentum. We relied on its transaction-based direction before using private estimates.
GASTAT official portal	It is the official statistical reference for Saudi Arabia.	We used it to verify the hierarchy of official data. We treated GASTAT as stronger than listing-based market commentary.
Ministry of Justice Real Estate Market	It is the official platform for Saudi real estate transactions.	We used it as the logic base for completed-deal evidence. We used transaction thinking to avoid relying only on asking prices.
JLL KSA Living Market Dynamics Q1 2026	JLL is a major real estate advisory firm with Saudi residential coverage.	We used it to assess supply, demand and phasing. We used its market view to avoid making an overly bullish Jeddah forecast.
CBRE Saudi Arabia Real Estate Market Review Q1 2026	CBRE is a global property adviser with local Saudi market research.	We used it to check market resilience and investor sentiment. We compared its broader market signals with Jeddah residential fundamentals.
Global Property Guide Saudi Arabia analysis	It aggregates Saudi residential prices, rents and yield indicators.	We used it as a secondary yield benchmark. We did not use it as the primary source for official price direction.
Saudi Central Bank repo rate data	SAMA is Saudi Arabia’s official monetary authority.	We used it to understand mortgage affordability and interest-rate pressure. We linked rate movements to buyer budgets in Jeddah.
IMF Saudi Arabia 2026 Article IV mission	The IMF provides independent macroeconomic surveillance for Saudi Arabia.	We used it to frame Saudi economic momentum in 2026. We used macro conditions to test whether housing demand is supported.
World Bank Saudi Arabia Macro Poverty Outlook	The World Bank publishes independent forecasts and risk analysis.	We used it for GDP, non-oil growth and risk assumptions. We used those forecasts in the five-year and 10-year scenarios.
Saudi Vision 2030 Housing Program	It is the official source for Saudi housing policy goals.	We used it to understand policy support for homeownership. We treated housing policy as a demand floor, not a guarantee of price growth.
Jeddah Central Project	It is an official Vision 2030 project source for central Jeddah.	We used it to assess long-term regeneration potential. We treated project impact as gradual and dependent on visible delivery.
SPA and REGA foreign ownership announcement	SPA is the official Saudi Press Agency for government announcements.	We used it to factor in the 2026 foreign ownership reform. We treated this reform cautiously because exact buyer behavior is still developing.