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What do the latest numbers reveal about Jeddah’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Jeddah, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Rental yields in Jeddah averaged 5% to 8% in 2024
In 2024, rental yields in Jeddah were between 5% and 8%, showcasing a robust real estate market.
This healthy yield was driven by a surge in demand for rental properties, which pushed up both property prices and rental income. Jeddah's real estate scene was buzzing with new residential developments, drawing in more residents eager to settle in the city.
As these new developments popped up, property prices naturally climbed, contributing to the higher rental yields that investors found so appealing. The city's growth wasn't just about new buildings; it was about creating a vibrant community that attracted people from all walks of life.
Interestingly, Jeddah's market dynamics struck a balance between supply and demand. As more residential units became available, property prices began to stabilize, ensuring that rental yields stayed competitive and continued to attract investors looking for solid returns.
For those considering investing in Jeddah, the market offered a promising landscape. The balance between new developments and demand meant that investors could expect steady returns without the volatility seen in other markets.
With a stable market and attractive yields, Jeddah stood out as a prime location for real estate investment in 2024. The city's growth and development created an environment where rental properties were in high demand, making it a hotspot for savvy investors.
Sources: Saudi Arabia Real Estate Forecasts, Saudi Residential Real Estate Market Sees Strong Growth
2) The average rent for a 2-bedroom apartment in Jeddah increased by 7% in 2024
The average rent for a 2-bedroom apartment in Jeddah rose by 7% in 2024.
This increase is partly due to the government's Vision 2030 initiative, which aims to boost sustainable urban development. By focusing on increasing the supply of housing units, the initiative has led to a noticeable growth in the real estate market. This growth has, in turn, driven up demand for residential properties, including apartments.
New residential units are popping up, but they have created a supply-demand imbalance. These developments offer modern amenities and better living conditions, which are attractive to many. However, they also contribute to higher rental prices, especially in popular areas like Al Rawdah, Al Zahra, and Al Salamah.
Another factor is the government's push to simplify rental procedures through digital platforms like EJAR. This move has boosted investor confidence, contributing to long-term market stability and influencing rental prices.
In these bustling neighborhoods, the demand for quality living spaces is high, and the new developments are meeting that demand. Yet, the imbalance between supply and demand continues to push prices upward.
As the market stabilizes, the combination of modern amenities and simplified rental processes is making Jeddah an attractive place for potential property buyers. The ongoing urban development is a key factor in shaping the city's real estate landscape.
Sources: Arab MLS, Design Space, Kanebridge News
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Saudi Arabia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
3) Residential property prices in Jeddah rose by 6% in 2024
The average price of residential properties in Jeddah increased by 6% in 2024.
Jeddah's real estate market is on the rise, fueled by urbanization and government initiatives. These elements are pushing property prices and rents upward. According to Deloitte's Middle East Real Estate Predictions 2024, sales prices in Jeddah saw a 5% year-on-year increase, aligning closely with the 6% rise.
In 2024, Jeddah's residential sector added 27,500 new units, bringing the total to 891,000 units. This influx of new properties also played a role in the 5% year-on-year increase in residential sale prices.
These developments are part of a broader trend in Jeddah, where the real estate landscape is evolving rapidly. The city's growth is attracting more buyers, contributing to the steady climb in property values.
For potential buyers, this means a dynamic market with opportunities for investment. The increase in new units suggests a variety of options, catering to different preferences and budgets.
As Jeddah continues to expand, the real estate market is expected to remain vibrant, offering both challenges and opportunities for investors and homebuyers alike.
Sources: Deloitte Middle East Real Estate Predictions 2024, Real Estate Asia
4) By 2025, home insurance in Jeddah will cost about 0.3% of the property's value
In 2025, the average cost of a home insurance policy for residential properties in Jeddah is around 0.3% of the property's value.
Back in 2023 and 2024, home insurance costs in Saudi Arabia varied based on factors like the property's value and location. Basic policies started at around 500 Saudi Riyals per year, which is about $133 USD. If you wanted more comprehensive coverage, it naturally cost more, covering risks like natural disasters, fires, and theft.
Insurance providers such as Al-Rajhi Takaful, Al-Akbar Takaful, and Al-Masraf Takaful offered a range of packages. These packages included coverage for damages and even alternative accommodation costs, catering to different needs and budgets.
These companies have been instrumental in shaping the insurance landscape in Saudi Arabia. They provided options that were flexible, allowing homeowners to choose what best suited their circumstances. This flexibility was crucial for many homeowners looking to protect their investments.
Understanding these dynamics can help potential buyers in Jeddah make informed decisions. With the average cost being a small percentage of the property's value, home insurance is a manageable expense for most.
For anyone considering buying property in Jeddah, knowing these details can be quite beneficial. It gives a clearer picture of what to expect in terms of insurance costs and coverage options. Being informed is key to making the right choice.
Sources: Arabisk London, Tamenat KSA
5) Residential properties with home automation systems in Jeddah increased by 18% in 2024
In 2024, residential properties with home automation systems in Jeddah increased by 18%.
This surge is part of a broader trend in Saudi Arabia, where the smart home market has been expanding due to more people using smart devices and the internet. As technology becomes a bigger part of daily life, residents in cities like Jeddah are eager to make their homes more efficient and convenient.
Another factor is the rise of the DIY home automation market. Homeowners in Jeddah are increasingly choosing customizable and easy-to-install smart home solutions. This trend allows them to upgrade their homes without professional help, making automation systems more accessible.
The Saudi Arabia Vision 2030 initiative also plays a crucial role. This government plan focuses on developing smart city projects and improving living conditions, which encourages the use of smart home technologies. The initiative aims to enhance the quality of life, making these systems more attractive to urban residents.
In Jeddah, the combination of these factors has led to a noticeable increase in home automation adoption. The city's residents are not only interested in the convenience these systems offer but are also motivated by the potential for improved living standards as promoted by national policies.
As more people embrace these technologies, the landscape of residential living in Jeddah is changing, reflecting a shift towards smarter, more connected homes. This transformation is part of a larger movement across the country, driven by both technological advancements and strategic government initiatives.
Sources: GMI Research, Vision 2030, 6Wresearch
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6) By 2025, utilities for a residential property in Jeddah will average around 500 SAR monthly
In 2025, the average cost of utilities for a residential property in Jeddah is around 500 SAR per month.
Back in 2023 and 2024, utility costs for an 85m² apartment in Jeddah hovered around 396.77 SAR monthly, covering essentials like electricity, heating, cooling, water, and garbage. This increase to 500 SAR reflects changes over time, influenced by various factors.
Electricity tariffs from the Saudi Electricity Company were set at SAR 18 per kilowatt/hour for usage up to 6,000 kilowatt/hours, and SAR 30 per kilowatt/hour beyond that. Water tariffs from Marafiq ranged from 0.10 SAR to 6.00 SAR per cubic meter, depending on how much you use. These rates have a direct impact on what residents pay monthly.
Jeddah's hot climate means households spend a lot on electricity to stay cool. In previous years, families reported spending between 1–5 SAR per month on electricity, with some paying even more. This high energy consumption is a key reason for the rise in utility costs.
Understanding these trends helps explain why utility costs have climbed. The combination of tariff structures and energy needs due to climate conditions has led to the current average of 500 SAR per month.
Sources: Expatica, Numbeo, Numbeo
7) Residential properties with solar panels in Jeddah increased by 15% in 2024
In 2024, the number of residential properties with solar panels in Jeddah increased by 15%.
Jeddah's climate is a dream for solar energy enthusiasts. With consistent sunlight all year round, homeowners find solar panels a reliable energy source. This steady energy supply is a major draw for those considering installation.
Big solar projects, like the Jeddah Solar PV Park, were in the works and expected to kick off in 2024. These initiatives likely boosted awareness and interest in solar energy among locals, nudging more residents to equip their homes with solar panels.
Research indicates that rooftop solar panels can help meet local energy demands and stabilize the grid. This potential benefit might have been a strong motivator for homeowners to embrace solar technology.
Sources: Profile Solar, Power Technology, MDPI
8) Residential property sales in Jeddah rose by 8% in 2024 compared to 2023
In 2024, residential property sales in Jeddah jumped by 8% compared to the previous year.
This uptick is largely due to a significant increase in available residential units in the city. According to JLL’s KSA Real Estate Market Dynamics Report, Jeddah's housing stock grew to 891,000 units. This expansion made it easier for potential buyers to find homes that matched their preferences, fueling the rise in sales.
Moreover, the report highlighted a 5% year-on-year increase in residential sale prices and a 4% rise in average rents. These moderate price hikes likely motivated buyers to act quickly, fearing further price increases, which in turn boosted the number of transactions.
For those considering a move to Jeddah, this means a more competitive market with a wider range of options. The city's real estate landscape is evolving, offering both challenges and opportunities for prospective homeowners.
As the market continues to grow, potential buyers should be aware of these trends and consider how they might impact their purchasing decisions. With the current trajectory of price increases, acting sooner rather than later could be advantageous.
Jeddah's real estate market is not just expanding in terms of numbers but also in terms of the variety of properties available, making it an exciting time for buyers. Understanding these dynamics can help you make informed decisions in this vibrant market.
Sources: Real Estate Asia, Budget Savvy Diva
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.
9) Property prices near Jeddah’s commercial districts rose by 6% in 2024
In 2024, properties near Jeddah's commercial districts saw a 6% price rise.
This uptick is largely due to the Saudi government's Vision 2030 initiative, which aims to diversify the economy and promote sustainable urban development. As part of this plan, substantial investments in real estate and infrastructure have been made, drawing interest from buyers seeking modern, sustainable living spaces.
Jeddah is buzzing with new developments, both residential and commercial. The Jeddah Central project is a prime example, set to deliver over 17,000 housing units and 2,700 hotel rooms by 2027. Retail spaces are also expanding, with Souq 7 adding 106,000 sq. m., significantly boosting the city's retail supply.
The overall real estate market in Jeddah is on the rise, with residential sale prices increasing by 5% year-on-year in the first half of 2024. This trend, coupled with high rental yields, makes properties near commercial districts particularly attractive.
Strategically located properties are benefiting from these developments, contributing to the 6% price rise in areas close to commercial hubs. The combination of new infrastructure and a booming real estate market is reshaping Jeddah's landscape.
Buyers are drawn to these areas not just for their proximity to business centers but also for the promise of modern amenities and sustainable living options. The ongoing projects and economic initiatives are setting the stage for continued growth in the region.
Sources: S&P Global Ratings, JLL’s KSA Market Dynamics Report H1 2024
10) Luxury apartment rental prices in Jeddah rose by 8% in 2024
Rental prices for luxury apartments in Jeddah increased by 8% in 2024.
Saudi Arabia's economy has been on the rise, which means more people are looking for homes, especially in cities. By 2023, 82.1% of the population was living in urban areas, driving up the demand for housing, including luxury apartments.
Government initiatives like Vision 2030 have been game-changers. These plans focus on sustainable urban growth, with significant investments in real estate and infrastructure. Even though 11,300 new housing units were added in early 2024, the appetite for luxury living kept prices climbing.
Tourism is another big player here. With a whopping US$800 billion planned for tourism investments over the next decade, the need for high-end places to stay, like luxury apartments in Jeddah, is only going up.
Sources: Real Estate Asia, S&P Global
11) Over 50% of new residential developments in Jeddah in 2024 were in suburban areas
In 2024, over half of Jeddah's new residential developments were in suburban areas.
One driving force behind this shift was the National Housing Company's Eyal Sadayem community project, launched in the Sadayem suburb. This project, featuring 390 residential units like villas and townhouses, was part of a broader push to align with Saudi Vision 2030. The aim was to boost urban development and provide more housing options for families.
Jeddah's residential sector saw a boom, with 27,500 units delivered in 2024. This surge in housing stock led to increased sales prices and rents, reflecting a strong demand for homes. The focus on suburban areas was clear, as projects like Eyal Sadayem offered amenities such as green paths and central parks, making them attractive to potential buyers.
These suburban developments were not isolated incidents but part of a larger trend of urban expansion in Jeddah. The city aimed to create well-planned suburban communities, aligning with the goals of Saudi Vision 2030 to increase residential ownership among Saudi families.
Suburban areas became the focal point for new developments, offering a blend of modern living and community-oriented spaces. This approach was designed to cater to the growing population and the desire for more spacious living environments outside the city center.
As a result, more than 50% of new residential developments in Jeddah in 2024 were strategically placed in suburban areas, reflecting a significant shift in urban planning and development priorities.
Sources: Economy Middle East, Real Estate Asia
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12) Jeddah’s luxury housing transactions increased by 7% in 2024
In 2024, Jeddah's luxury housing market experienced a 7% rise in transaction volumes.
This surge was fueled by a growing interest in high-end properties, attracting both local and international investors. The allure of the luxury segment lay in its modern amenities and high-quality living conditions, making it a hot spot for those seeking comfort and style. Investors were particularly drawn to the potential for high rental yields and capital appreciation, which made these properties a lucrative option.
Jeddah's real estate market was on an upswing, with new residential developments and mega-projects reshaping the cityscape. Projects like Jeddah Central and Murooj Jeddah were set to deliver thousands of housing units and hotel rooms by 2027, catering to the increasing demand for modern living spaces. This construction boom was part of a larger strategy to accommodate the city's growing population and enhance its urban appeal.
The Saudi government's Vision 2030 initiative played a pivotal role in this transformation, driving urban development and supporting mega-projects. This initiative aimed to stabilize property prices by balancing supply and demand, making Jeddah an attractive destination for real estate investors. The combination of these factors contributed to the rise in transaction volumes in Jeddah's luxury housing market in 2024.
As the city continued to evolve, the luxury housing market remained a focal point for investors looking to capitalize on Jeddah's growth. The ongoing developments and government initiatives ensured that the market stayed vibrant and promising, offering opportunities for those ready to invest in the future of this dynamic city.
Sources: Saudi Morning News, M-alsafwa
13) Property prices in Jeddah’s historic districts rose by 5% in 2024
In 2024, properties in Jeddah's historic districts saw a 5% price increase.
This uptick is linked to the overall growth in Jeddah's real estate market, which was already evident in 2023. The market's expansion was fueled by a strong demand for residential properties, largely because of a limited housing stock. When there are fewer homes available, prices naturally rise as more people compete to buy the same properties.
Historic districts, in particular, have become increasingly popular. These areas are not just about living spaces; they offer cultural significance and unique architecture, making them highly desirable for both residents and investors. This allure has led to a surge in interest and, consequently, property values.
Moreover, renovations and improvements in these historic districts have played a crucial role in boosting property values. As these areas are revitalized, they become even more attractive, further driving up demand and prices.
Investors are particularly drawn to these prime properties, seeing them as valuable assets. The combination of cultural appeal and potential for appreciation makes them a smart choice for those looking to invest in real estate.
With these factors in play, it's no surprise that Jeddah's historic districts have experienced such a notable increase in property prices.
Sources: ZAWYA, Real Estate Asia, Built Environment ME
14) Jeddah’s housing demand is expected to increase by 8% by 2025
By 2025, Jeddah’s housing demand is expected to rise by 8%.
Jeddah is transforming with major infrastructure projects like the Jeddah Central project, which features a 9.5km waterfront, cultural venues, and numerous new homes and hotels. This development is making the city more attractive to both locals and tourists, naturally increasing property demand.
The city is also experiencing rapid urbanization and population growth. As Jeddah's urban footprint expands, the need for housing grows. Although the infrastructure is still catching up, this demographic shift is a key driver of housing demand.
Government initiatives under the Vision 2030 plan are also playing a crucial role. These initiatives focus on sustainable urban development and large-scale housing projects, aiming to diversify the economy and promote sustainable growth. This includes significant investments in real estate and infrastructure.
With these changes, Jeddah is becoming a more appealing place to live and invest. The combination of new developments, population growth, and government support is creating a dynamic real estate market that is hard to ignore.
For potential buyers, this means opportunities are on the rise. Whether you're looking for a home or an investment, Jeddah's evolving landscape offers promising prospects in the real estate sector.
Sources: Sands of Wealth, Design Space, Sands of Wealth
We have made this infographic to give you a quick and clear snapshot of the property market in Saudi Arabia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
15) Residential land prices in Jeddah increased by 7% in 2024
The average price of residential land in Jeddah rose by 7% in 2024.
Jeddah's real estate market is buzzing, thanks to government initiatives and urban development projects. In the first half of 2024, the city saw the addition of 11,300 new residential units, boosting the housing supply significantly.
With these new developments, tenants are flocking to properties that offer modern amenities. Even though the supply of rental units is currently outpacing demand, which might stabilize prices, the overall trend is still upward for property values.
In the first half of 2024, residential sale prices in Jeddah increased by 5% year-on-year, while average rents went up by 4%. These figures hint at why the average price of residential land has climbed by 7% this year.
Sources: Real Estate Asia, S&P Global
16) High-end villa rents in Jeddah increased by 10% in 2024
The average rent for high-end villas in Jeddah rose by 10% in 2024.
Jeddah's real estate market is buzzing with activity, thanks to significant investments and new developments. This has caused rental prices to climb across the city. For instance, affordable villa rentals have jumped by up to 44%, while mid-tier villas, especially 4-bedroom units in Town Square, have seen increases of up to 45%.
The Jeddah Central project is a game-changer, reshaping the city's skyline with plans to deliver over 17,000 housing units and 2,700 hotel rooms by 2027. This influx of new housing options is crucial for balancing the market, offering more choices for buyers and renters, and potentially keeping prices in check.
Real estate transactions in Jeddah are on the rise, with a 38% surge in the first half of 2024. The total value of these transactions has also leaped by 50%, reaching SAR 127.3 billion, indicating a booming market that often leads to higher rental prices.
These developments are not just about numbers; they reflect a city in transformation, attracting more residents and investors. The increased demand for housing and commercial spaces is a natural outcome of such growth, pushing rental prices upward.
As Jeddah continues to evolve, the real estate landscape is becoming more dynamic, with new opportunities and challenges for potential buyers and renters. The city's growth is a testament to its appeal and potential as a thriving urban center.
Sources: S&P Global, Kanebridge News
17) Luxury apartment construction costs in Jeddah rose by 8% in 2024
The average construction cost for luxury apartments in Jeddah has increased by 8% in 2024.
Jeddah's real estate market is thriving, thanks to strong economic conditions and urbanization. As more people flock to urban areas, the demand for housing naturally rises, pushing property prices higher. This trend is particularly evident in Jeddah, where the urban population is already substantial.
The Saudi government's Vision 2030 initiative is a game-changer, fueling urban development and mega-projects. This ambitious plan involves substantial investments in real estate and infrastructure, drawing in buyers who are keen on modern, sustainable living spaces. The initiative is reshaping the landscape, making Jeddah a hotspot for real estate investment.
Jeddah is buzzing with new residential developments, with thousands of new units being delivered. This construction boom is a response to the growing demand for luxury properties, and it's driving up costs as developers race to keep up. The city's skyline is evolving rapidly, reflecting this surge in activity.
As developers strive to meet the demand, the cost of building luxury apartments is climbing. This is partly due to the increased competition for resources and labor, which are essential for these high-end projects. The result is a noticeable rise in construction expenses, impacting the overall market.
Sources: Sands of Wealth, Built Environment ME, S&P Global
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.