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Property prices in Jeddah are going up significantly as we reach mid-2025. The city's residential market shows robust growth with average house prices reaching SAR 1.5 million and apartment prices rising to SAR 4,215-4,254 per square meter, driven by strong demand, limited supply, and major infrastructure developments under Vision 2030.
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Jeddah's property market is experiencing strong upward momentum with prices rising 5-6% annually in 2024-2025.
Premium districts like Al-Shati and Al-Hamra are leading growth with price increases up to 12% annually for luxury properties.
| Metric | Current Value (Mid-2025) | Growth Trend |
|---|---|---|
| Average House Price | SAR 1.5 million | 6% increase in 2024 |
| Apartment Price per sqm | SAR 4,215-4,254 | 3.1% annual growth |
| Villa Price per sqm | SAR 5,000-5,240 | 1.7% decline in 2024 |
| Rental Yields | 7.89% | 4% annual increase |
| Transaction Volume | 38% increase H1 2024 | Strong upward trend |
| 5-Year CAGR Forecast | 7.9% | 40-50% price growth expected |
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.
What are the current average property prices in Jeddah as of June 2025?
Property prices in Jeddah have reached significant levels as we move through mid-2025.
The average house price in Jeddah stands at approximately SAR 1.5 million as of June 2025. Apartment prices have stabilized at SAR 4,215-4,254 per square meter, while villa prices range from SAR 5,000-5,240 per square meter across the city.
However, these averages mask considerable variation across different neighborhoods. Premium districts like Al-Hamra command up to SAR 8,000 per square meter, significantly above the city average. Al-Shati, known for its luxury waterfront properties, has seen some villas reach prices as high as SAR 13 million.
The pricing structure reflects Jeddah's diverse real estate landscape, where location, amenities, and property type significantly influence values. Waterfront properties and those in established neighborhoods with superior infrastructure consistently command premium prices.
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How much have property prices increased in Jeddah over the past year?
Jeddah's property market has shown robust growth throughout 2024 and into 2025.
Overall residential property prices in Jeddah increased by 6% in 2024, with apartments leading the growth at 3.1% annually. Interestingly, villa prices experienced a slight decline of 1.7% in 2024, reflecting shifting demand patterns toward apartment living. Property transaction volumes surged by 38% in the first half of 2024, with total transaction values jumping 50% to SAR 127.3 billion.
The growth has been particularly pronounced in premium neighborhoods. Al-Shati has experienced annual price increases of approximately 12%, driven by luxury waterfront developments and limited supply. Al-Hamra has seen similar growth rates of around 10% annually, benefiting from its central location and proximity to new infrastructure projects like Jeddah Central.
These increases reflect strong underlying demand drivers including population growth of 1.5-2.5% annually, urbanization trends, and the impact of Vision 2030 infrastructure investments. The rental market has also strengthened, with rents increasing by 8% in 2024.
Which neighborhoods in Jeddah are experiencing the fastest price growth in 2025?
Premium waterfront and central districts are leading Jeddah's property price appreciation as of mid-2025.
| Neighborhood | Price Range | Annual Growth | Key Growth Drivers |
|---|---|---|---|
| Al-Shati | Up to SAR 13M for villas | +12% | Luxury waterfront location, Darco Real Estate Project developments, limited supply of premium properties |
| Al-Hamra | SAR 8,000/sqm average | +10% | Central location, Jeddah Central project proximity, modern amenities, cultural heritage appeal |
| North Obhur | SAR 4-20M+ for villas | +11% | Luxury villa communities, gated developments, expatriate preference for high-end housing |
| Al-Marwah | Mid-range pricing | +9% | Urban expansion benefits, mixed-use developments, improved connectivity |
| Al-Salamah | Varies by property type | +8% | High rental yields, strong sales activity, balanced supply-demand dynamics |
| Al-Khalidiyah | Family-oriented pricing | +7% | Educational facilities, family community appeal, expat relocation demand |
| Al-Rawdah | Premium family areas | +6% | Top-tier schools like Sherborne, family-oriented amenities, educational infrastructure |
Are apartments or villas seeing bigger price increases in Jeddah right now?
Apartments are currently outperforming villas in terms of price appreciation in Jeddah's market.
Apartment prices rose by 3.1% in 2024, reaching SAR 4,215-4,254 per square meter, while villa prices actually declined by 1.7% to SAR 5,000-5,240 per square meter. This represents a significant shift in market dynamics compared to previous years when villas typically led price growth.
Several factors explain this trend reversal. First, changing demographics and lifestyle preferences are driving demand toward apartment living, particularly among younger professionals and expatriates. Second, apartments offer better rental yields, with many achieving returns of 7.5-8.5% annually. Third, the supply of new apartment developments has been more constrained relative to demand compared to the villa market.
However, this trend varies significantly by location and property quality. Luxury villas in prime locations like Al-Shati continue to appreciate strongly, while mid-range villas in secondary locations have seen price pressures. The apartment market benefits from strong expatriate demand, with 13.4 million expatriates in Saudi Arabia driving rental and purchase demand in urban centers like Jeddah.
What are the current mortgage interest rates for property buyers in Jeddah?
Mortgage rates in Saudi Arabia have become increasingly favorable for property buyers as of June 2025.
The Saudi Arabian Monetary Agency (SAMA) has implemented three consecutive rate cuts in late 2024, reducing the official repo rate to 5.0% in December 2024, down from higher levels earlier in the year. The reverse repo rate was also cut to 4.5%. These moves align with global monetary policy trends and aim to stimulate economic activity and housing demand.
For residential mortgages, banks typically offer rates starting from around 5.5-6.5% for qualified borrowers, with the exact rate depending on the borrower's profile, down payment amount, and loan term. Saudi nationals can access government-subsidized loan schemes offering more favorable terms, while expatriates rely on commercial bank financing with slightly higher rates.
The mortgage market has seen significant activity, with SAR 8.14 billion in new residential mortgages issued in October 2024 alone - the highest monthly figure in 21 months. Financial institutions expect further rate reductions through 2025, potentially declining by an additional 225 basis points by year-end, which would further improve affordability for buyers.
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How do Jeddah property prices compare with Riyadh and other Saudi cities in 2025?
Jeddah's property prices position the city in the middle tier of Saudi Arabia's major urban markets as of mid-2025.
Compared to Riyadh, Jeddah's residential market shows more moderate pricing. Riyadh apartment prices average SAR 5,050 per square meter, approximately 18% higher than Jeddah's SAR 4,215-4,254 range. For villas, Riyadh commands SAR 5,320-5,763 per square meter compared to Jeddah's SAR 5,000-5,240 range. However, Riyadh has experienced stronger price growth, with 10% year-on-year increases compared to Jeddah's 5% growth in 2024.
Relative to Dammam in the Eastern Province, Jeddah maintains a premium position. Dammam apartment prices average SAR 3,743 per square meter, about 13% below Jeddah levels, while Dammam villa prices are significantly lower at SAR 3,530 per square meter. This reflects Jeddah's status as a major commercial center and gateway to Mecca.
The pricing differential reflects each city's economic drivers and development priorities. Riyadh benefits from being the capital and center of Vision 2030 projects, while Jeddah leverages its Red Sea location and tourism potential. The gap between cities has narrowed as government investment spreads across the Kingdom.
What is driving the current property price increases in Jeddah?
Multiple interconnected factors are propelling Jeddah's property price growth in 2025.
Population growth remains the primary driver, with Jeddah's population reaching 4.94 million residents by 2024, growing at 1.5-2.5% annually. This demographic expansion creates sustained housing demand that often outpaces new supply delivery. The city's urbanization rate of 82.1%, projected to reach 97.6% by 2030, further concentrates demand in urban areas.
Vision 2030 infrastructure investments are transforming Jeddah's appeal and accessibility. Projects like Jeddah Central, featuring a 9.5-kilometer waterfront with sandy beaches and cultural venues, are reshaping entire districts. The development includes 17,000+ residential units planned by 2027, though current demand exceeds this planned supply.
Foreign investment liberalization has significantly impacted the market. The removal of restrictions on foreign property ownership (except in Mecca and Medina) and the introduction of flexible residency visa options tied to real estate investments have attracted international buyers. In the first half of 2024, 184 foreign companies moved their regional headquarters to Saudi Arabia, many establishing operations in Jeddah.
Supply constraints in prime locations continue to support price appreciation. Limited available land in desirable waterfront and central areas, combined with rising construction costs, restricts new development pace. Additionally, government mortgage reforms, including down payment reductions from 30% to 5%, have improved buyer accessibility and supported demand growth.
What are the property price forecasts for Jeddah through 2026-2030?
Property price projections for Jeddah indicate continued strong growth through the remainder of this decade.
Short-term forecasts through 2026-2027 predict annual price growth of 5-7%, with Knight Frank projecting steady appreciation driven by sustained demand and limited supply in prime areas. The Jeddah property price index is expected to rise from current levels of around 104 to potentially 110-115 by 2027, representing cumulative growth of 6-11% over this period.
Medium-term projections through 2030 suggest a compound annual growth rate (CAGR) of 7.9%, potentially delivering 40-50% total price appreciation over the next five years. This aggressive forecast reflects the anticipated impact of Vision 2030 projects reaching completion and Jeddah's positioning as a major tourism and business hub in the region.
However, market dynamics are expected to evolve as new supply comes online. Large-scale developments like Jeddah Central and Murooj Jeddah (210 towers) should help moderate price growth in the outer years as supply catches up with demand. Premium locations with limited developable land are likely to continue outperforming the broader market.
The upcoming Expo 2030 in Riyadh is expected to create positive spillover effects for Jeddah through increased tourism, business activity, and infrastructure investment across the Kingdom. This event could provide additional upward pressure on prices in the 2028-2030 period.
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.
Are foreign buyers contributing to rising property prices in Jeddah?
Foreign investment has become a significant factor in Jeddah's property price dynamics since liberalization policies took effect.
The removal of foreign ownership restrictions in 2025 (excluding Mecca and Medina) has attracted substantial international interest. In the first half of 2024, 184 foreign companies relocated their regional headquarters to Saudi Arabia, with many choosing Jeddah for its strategic Red Sea location and business infrastructure. This corporate migration has driven demand for executive housing and premium residential properties.
Individual foreign buyers are particularly active in the luxury segment. Jeddah attracted 300 new millionaires in 2024, many from North Africa and the Middle East, who are investing in high-end waterfront properties and premium developments. These buyers often target properties in Al-Shati, Al-Hamra, and North Obhur, contributing to the 10-12% annual price growth in these premium districts.
Government initiatives have facilitated this foreign investment surge. New residency visa options tied to real estate investments, streamlined approval processes, and reduced property taxes (from 10% to 5% for foreigners) have improved the investment climate. Additionally, the introduction of flexible registration mechanisms replacing traditional investment licenses has simplified property acquisition procedures.
However, recent visa policy changes may moderate future foreign demand. The reduction of Temporary Work Visa duration from 180 days to 90 days starting in early 2025 could make property management more challenging for non-resident foreign investors, potentially affecting certain market segments.
What rental yields can property investors expect in Jeddah currently?
Jeddah's rental market offers attractive yields that compare favorably with regional alternatives as of mid-2025.
Average gross rental yields in Jeddah currently stand at approximately 7.89%, according to the STC Real Estate Index. This represents solid returns for property investors, particularly when compared to yields in other Gulf cities. Some segments offer even higher returns, with 2-bedroom apartments in Q3 2024 achieving rental yields of 11.7%.
Rental growth has been robust, with residential rental rates increasing by 8% in 2024. This growth reflects strong demand from the city's expanding expatriate population and young Saudi professionals seeking urban living options. The government's rent control measures, which cap annual increases at 10% with 90-day notice periods, provide a framework for predictable growth while protecting tenant interests.
Yield performance varies significantly by property type and location. Apartments and smaller units generally achieve higher yields than villas, especially in high-density areas with strong rental demand. Properties in business districts and areas with good infrastructure connectivity tend to command premium rents and deliver superior yields.
The rental market benefits from Jeddah's growing tourism sector and increasing business activity. Short-term rental properties, particularly those near major attractions and business centers, can achieve yields in the 8-9% range or higher. However, investors should consider that while rental yields remain attractive, they have grown more slowly than property values, indicating that capital appreciation is currently the primary driver of total returns.
How is Vision 2030 specifically impacting Jeddah's property market in 2025?
Vision 2030 is fundamentally reshaping Jeddah's real estate landscape through massive infrastructure investment and economic diversification initiatives.
The program has allocated over SAR 300 billion toward housing development nationwide, with significant portions directed to Jeddah projects. The Jeddah Central development, a flagship Vision 2030 initiative, represents the most transformative project affecting the city's property market. This massive urban development includes a 9.5-kilometer waterfront with sandy beaches, cultural venues, and over 17,000 residential units planned for completion by 2027.
Economic diversification efforts under Vision 2030 are reducing Saudi Arabia's oil dependence and creating new employment opportunities in Jeddah. The non-oil sector growth, reaching significant milestones in 2024-2025, has strengthened job security and increased disposable income for potential property buyers. The target of achieving 70% homeownership by 2030 has driven government support for mortgage accessibility and affordability programs.
Infrastructure improvements are enhancing Jeddah's connectivity and livability. Transportation projects, utility upgrades, and smart city initiatives are improving quality of life and property values across the city. The Sakani housing program, part of Vision 2030, has facilitated over 800,000 contracts nationwide and continues to support first-time buyers in Jeddah.
Tourism development under Vision 2030 is creating additional demand drivers. As Jeddah positions itself as a gateway to religious tourism and a business hub, hotel and hospitality projects are increasing demand for supporting residential infrastructure. The target of attracting 100 million tourists annually by 2030 will require substantial housing and service sector expansion in Jeddah.
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Should I buy property in Jeddah now or wait for prices to stabilize?
The optimal timing for property purchase in Jeddah depends on individual circumstances, but current market conditions favor buyers who can act decisively.
Arguments for buying now include the current momentum in price appreciation, which shows no signs of slowing through 2025. With 5-6% annual growth rates and projections of 40-50% appreciation over the next five years, delaying purchase could result in significantly higher entry costs. Additionally, mortgage rates are currently favorable following SAMA's recent cuts, and further reductions are expected through 2025.
The supply-demand imbalance supports continued price growth. With Jeddah's population growing at 1.5-2.5% annually and major developments like Jeddah Central not delivering units until 2027, current supply constraints are likely to persist. Foreign investment liberalization has also created new demand sources that weren't present in previous years.
However, potential buyers should consider timing based on their specific goals. Investment buyers seeking maximum capital appreciation might find better opportunities in emerging neighborhoods like Al-Marwah or Al-Nahda before major infrastructure projects are completed. Those prioritizing rental income might focus on established areas with proven rental demand.
For end-users planning to live in the property, current market conditions are generally favorable given the improving mortgage environment and the likelihood of continued appreciation. The key is selecting the right location and property type based on long-term development plans and personal preferences.
Waiting for price stabilization carries risks, as most forecasts suggest continued growth through 2030. However, buyers should ensure they have adequate financial buffers and are comfortable with potential short-term volatility as the market adjusts to new supply additions in the coming years.
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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.
Property prices in Jeddah are going up significantly as we reach mid-2025, driven by strong fundamentals and government investment.
With 5-6% annual growth rates and projections of 40-50% appreciation over the next five years, the market shows clear upward momentum that is expected to continue through the Vision 2030 timeline.
Sources
- ARAB MLS - Average Price of a House in Jeddah
- ApartHotel - Saudi Arabia Market Analysis
- Sands of Wealth - Jeddah Areas Analysis
- Argaam - Saudi Real Estate Market Report
- Global Property Guide - Saudi Arabia Price History
- S&P Global - Saudi Residential Real Estate Market
- Sands of Wealth - Jeddah Price Trends
- Sands of Wealth - Jeddah Real Estate Forecasts
- Crown Continental - Saudi Arabia Real Estate Outlook 2025
- Arab News - Saudi Real Estate Loans