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What is happening in Jeddah’s real estate market? Are prices on the rise or decline? Is Jeddah still attracting foreign investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across the city. Maybe you’re curious about the same things.
We stay closely connected with local experts and people like you, exploring the Jeddah real estate market daily. That’s why we’ve crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we’ve missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
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1) More favorable regulations will boost foreign investor participation in the market
Saudi Arabia is making it easier for non-Saudi residents to own real estate.
Thanks to the Saudi Vision 2030 initiative, the country is actively working to attract foreign investment. This plan, which started in 2016, is all about shaking things up by privatizing state-owned companies and cutting down on energy subsidies. It's like a makeover for the economy, making it more appealing for international investors.
Come February 2025, a new investment law will make things even smoother for foreign investors. The current foreign investment license will be replaced with a more flexible registration mechanism, simplifying property registration and encouraging more foreign direct investment.
In the first half of 2024, 184 foreign companies moved their regional headquarters to Saudi Arabia, showing just how attractive the country is becoming for investors. This trend is also seen in Jeddah, where international real estate firms are expanding, thanks to favorable regulations and efforts to diversify the economy.
Sources: HFW, Middle East Briefing, LandVault, Centuro Global
2) Affordable housing prices will stay stable with government initiatives supporting this segment
The Saudi government is working hard to keep affordable housing prices stable.
Through the Vision 2030 program, they've set aside over SAR 300 billion to help more Saudi families own homes. This includes the Sakani program, which offers financing options for affordable housing. It's a big push to make home ownership more accessible.
Rent control is another tool in their kit. The government has capped rent increases at a maximum of 10% annually, with a 90-day notice period. This policy helps keep rent prices from spiraling, ensuring that affordable housing remains within reach for many.
On the construction front, the National Housing Company is busy. They've delivered 11,300 new residential units in just the first half of 2024. This surge in new homes is a big boost to the supply of affordable housing, making it easier for people to find a place to live.
Partnerships with private developers are also making a difference. Programs like Etmam have streamlined the licensing process, speeding up the time it takes to build new homes. Plus, the White Land program is turning vacant urban land into residential areas, which helps balance the housing market.
These efforts are all part of a broader strategy to ensure that affordable housing remains stable and accessible, supported by government initiatives and partnerships.
Sources: S&P Global, Arab MLS
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.
3) Government intervention will keep affordable housing rents stable
The Saudi government is making sure that affordable housing rents stay stable, especially in cities like Jeddah.
Through the Vision 2030 program, the government is pushing for a 70% homeownership rate by 2030 and plans to provide 95,000 homes for the neediest families by 2025. This is part of a broader effort to make housing more accessible and keep rents from rising too fast.
There's been a big boost in funding for housing projects aimed at low-income families. The Housing Ministry has committed SR59.2 billion ($15.8 billion) to build 400,000 affordable units by 2020, with a goal of 1.5 million homes by 2024. This kind of investment is a clear sign that the government is serious about increasing the supply of affordable housing.
Partnerships with local developers are also a key part of the strategy. A notable example is a $20 billion deal with South Korean Hanwha Engineering & Construction to build 100,000 homes over the next decade. These collaborations are essential for maintaining a steady flow of affordable housing, which helps keep rent prices in check.
By working closely with developers, the government ensures that new housing projects meet the needs of low-income families. This approach not only boosts the housing supply but also supports the stability of rental prices.
With these efforts, the Saudi government is actively shaping the housing market to make sure that affordable housing remains within reach for many families, preventing sudden rent hikes.
Sources: Saudipedia, MEED, Arab News
4) New schools opening will make Al-Rawdah more popular with families
In 2025, the Al-Rawdah area is becoming a hotspot for families, thanks to the opening of new schools.
One standout is the Sherborne School Jeddah, a British school that opened its doors in September 2025. It offers a British curriculum from Pre-School to Year 6, with plans to expand to Year 13, paving the way for students to achieve IGCSEs and A Levels.
There's been a noticeable rise in demand for premium international education in Jeddah. More private international schools are popping up, and an increasing number of Saudi nationals are enrolling their children in these institutions. This trend shows a strong preference for high-quality education, which heavily influences where families choose to settle.
The real estate market in Jeddah is also feeling the impact of the growing expatriate population and the demand for quality education. In 2023, the Jeddah K-12 Private Education Market was valued at SAR 6.69 billion. Affluent areas like Al Shati, near Al-Rawdah, are becoming more appealing to families, thanks to their educational facilities.
Families are increasingly drawn to neighborhoods with top-notch schools, making Al-Rawdah a prime choice. The presence of schools like Sherborne is a game-changer, offering families the chance to provide their children with a world-class education without leaving the country.
As more schools open, Al-Rawdah is set to become even more popular with families looking for a community that values education. The area's transformation is a testament to the growing importance of education in shaping real estate trends and family decisions.
Sources: Which School Advisor, Which School Advisor, GlobeNewswire
5) Jeddah’s property prices will rise moderately with economic recovery
Jeddah's economy is bouncing back, and this is nudging residential property prices upward.
With Saudi Arabia's unemployment rate dropping to 3.3% and a notable decrease among Saudi nationals to 7.1%, more people are feeling secure in their jobs. This boost in employment is making folks more confident about investing in homes, which is a key driver for the property market.
The Saudi government's Vision 2030 is a game-changer, aiming to diversify the economy and promote sustainable urban growth. Big projects like NEOM and The Line are part of this vision, drawing in buyers who are keen on modern, eco-friendly living. This interest is helping to push property prices up. Plus, the non-oil sector is growing, adding more fuel to the economic engine and nudging property values higher in Jeddah.
Urbanization is another big factor. With 82.1% of Jeddah's population living in urban areas and expected to hit 97.6% by 2030, there's a pressing need for more housing. This urban shift is naturally driving up property prices. Jeddah is also buzzing with infrastructure projects, over 100 of them worth $613 billion, including the Jeddah Central project. These developments are making the city more connected and accessible, offering more options for buyers and renters, and gently lifting property prices.
Property values are on the rise, with apartment prices averaging SAR 4,027 per square meter as of Q2 2024. This growth in the apartment market is a clear sign of the moderate increase in residential property prices. Government policies under Vision 2030 are also encouraging home ownership, which indirectly supports this upward trend.
Sources: Arab News, Arab News, Design Space
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6) Luxury property prices in Jeddah will outpace the market as demand from high-net-worth individuals grows
Luxury property sales in Jeddah have skyrocketed, especially in 2024, with rental yields seeing a significant boost.
In the second quarter of 2024, apartment sales volumes surged by 66.9%, highlighting a strong demand for upscale living in the city. This trend is fueled by the increasing number of high-net-worth individuals in Saudi Arabia.
By 2025, the affluent population is expected to grow by 20% from 2020, reaching 287,115. Jeddah is becoming a hotspot for new millionaires, including 300 who arrived in 2024, many from North Africa and the Middle East.
The Saudi government's initiatives have been pivotal, simplifying investment rules and allowing 100% foreign ownership in certain sectors. This led to a 38% increase in real estate transactions in the first half of 2024, with a total value of SAR 127.3 billion.
Jeddah's appeal is further enhanced by major infrastructure projects like Jeddah Central, featuring a 9.5km waterfront and cultural venues. These developments are attracting high-net-worth individuals looking for luxury living.
With these factors in play, Jeddah is poised to see luxury property prices rise faster than the average market, driven by the demand from affluent buyers.
Sources: Arab News, Argaam, Cityscape Intelligence
7) Affordable housing yields will stay steady with ongoing government support
The Saudi government is heavily investing in affordable housing, especially in cities like Jeddah, as part of its Vision 2030 plan.
In Jeddah, rental yields for affordable housing have stayed strong, with a gross yield of 11.7% for a 2-bedroom apartment. This is higher than in other Gulf cities, showing a robust market. The National Housing Company (NHC) is key in keeping these yields stable by boosting the number of affordable homes.
Public-private partnerships are also playing a big role in increasing affordable housing supply. In the first half of 2024, Jeddah added 11,300 new residential units, bringing the city's total to 891,000 units. This ongoing construction, backed by government efforts, helps keep rental yields steady.
Projects like the "Mela" development in Jeddah, offering 819 villas and townhouses, are part of this push. These initiatives are not just about numbers; they aim to provide more housing options for Saudi nationals, aligning with the broader goals of Vision 2030.
Jeddah's affordable housing market is thriving, thanks to these strategic moves. The government's Affordable Housing Program, managed by the NHC, ensures a continuous supply of homes, which is crucial for maintaining rental yields.
With the government's support and strategic partnerships, affordable housing yields in Jeddah are expected to remain steady. This stability makes it an attractive option for potential property buyers looking for reliable investment opportunities.
Sources: Arab News, Zawya, Arab News
8) Expatriate influx will diversify housing preferences, affecting property types in demand
Jeddah's housing market is buzzing with new energy thanks to a wave of expatriates.
By 2024, Jeddah's population swelled to 4.94 million residents, creating a vibrant mix of cultures and tastes. This influx has turned the city into a true melting pot, where diverse housing preferences are reshaping the real estate landscape.
Recent reports highlight a growing appetite for varied housing options. According to S&P Global, the residential real estate sector is expected to see an average annual growth of 3.3% from 2024 to 2027, largely fueled by expatriates. This surge is evident in the market, with residential properties leading the charge, hitting SR127.3 billion ($33.89 billion) in transactions in the first half of 2024.
Expatriates are particularly drawn to apartments, villas, and gated communities. This demand for high-quality homes is pushing prices up, especially in popular neighborhoods where top-notch apartments are scarce. As a result, prices vary widely based on location, availability, and quality.
Neighborhoods with limited high-quality units are seeing the most significant price hikes. The demand for these properties is not just about living space but also about lifestyle, with many seeking communities that offer a blend of comfort and convenience.
Sources: Arab News, Global Media Insight
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.
9) Foreign buyers will target central areas for their superior amenities and infrastructure
Foreign buyers are increasingly drawn to central Jeddah for property investments.
In the heart of Jeddah, property prices are climbing, signaling a strong demand, especially for luxury homes. These central areas are buzzing with economic activity and modern amenities, making them a magnet for international buyers. While the outskirts might be cheaper, they just don't offer the same allure or level of development.
Big infrastructure projects, like the Jeddah Central Project, are reshaping the city. This massive development is turning the waterfront into a lively spot for everyone, from tourists to locals. With the Jeddah Metro improving public transport, getting around is easier, adding to the city's appeal.
Real estate reports highlight a surge in transactions in central Jeddah, with property values on the rise. This uptick shows a keen interest from foreign buyers who are attracted to the area's modern infrastructure and amenities. The higher rental yields here are also a big draw, appealing to both locals and tourists.
Central Jeddah's transformation is evident in its booming real estate market, driven by these developments. The combination of luxury living, improved connectivity, and vibrant city life is hard to resist for those looking to invest.
As these central areas continue to evolve, they offer a unique blend of tradition and modernity, making them a top choice for foreign investors. The focus on central Jeddah is clear, with its enhanced infrastructure and amenities setting it apart from other regions.
Sources: Top Luxury Property, Saudipedia, Kanebridge News ME
10) Virtual property tours will increasingly influence buying decisions
In 2023, Saudi Arabia's internet penetration hit an impressive 99%, making virtual property tours accessible to nearly everyone.
In Jeddah, real estate platforms are embracing virtual reality, offering immersive experiences that feel like you're walking through a property. Companies like Manzili and Sanadak are leading the charge with advanced virtual tour technologies.
Surveys reveal that 67% of home buyers prefer virtual tours, and over half won't consider a property without one. This trend is pushing the real estate market to adopt virtual tours more widely.
Listings with virtual tours get 87% more views, and buyers spend more time exploring them. This means virtual tours not only attract more interest but also keep potential buyers engaged longer.
Recent case studies show that homes with virtual tours sell for 9% more on average and close 31% faster. This makes virtual tours a powerful tool for sellers looking to maximize their returns.
Technological advancements have made virtual tours more immersive and accessible. Platforms like Sanadak and Manzili offer features like interactive maps and 360º views, making online property exploration easier and more engaging.
Sources: PhotoUp, Economy Middle East, Manzili, Saudi Gazette
11) Stricter building codes will raise new development costs, affecting property prices
Stricter building codes can drive up construction costs, affecting property prices.
When developers face tougher regulations, they often need to use more materials and hire extra labor, which takes more time. This was evident in the U.S. when the International Building Code was introduced, requiring stronger materials and advanced safety features, leading to higher construction costs.
As construction costs rise, developers typically pass these expenses onto buyers, resulting in higher property prices. In New York, after new zoning regulations in 2019, property values increased as developers adapted to the changes. A similar trend was seen in Singapore, where sustainable building practices pushed property prices up.
Experts believe these regulatory changes will keep raising costs in the construction sector. Deloitte's analysis on the banking industry outlook for 2025 suggests that property prices could rise as developers transfer the increased costs to buyers. Many builders have reported higher construction costs due to these regulatory shifts.
Real estate market analyses often show a link between regulatory changes and property price trends. A study by Zillow found that areas with stricter zoning laws in the U.S. experienced higher property values, indicating that as building codes tighten, property prices are likely to climb.
Sources: New York Real Estate Market Analysis, Deloitte Banking Industry Outlook, J.P. Morgan Market Outlook
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12) Demand for eco-friendly homes will grow as sustainability becomes a priority
Interest in eco-friendly homes is on the rise as sustainability becomes a priority.
In Saudi Arabia, there's been a noticeable shift towards green building certifications, with the country leading the Arab world by registering 2,000 out of 5,000 green building projects. This trend is part of a larger market growth, expected to jump from $16.4 billion to $33.0 billion by 2030, showing a strong commitment to sustainable construction.
The Saudi government's Vision 2030 is a major driver of this change, emphasizing sustainable development. This initiative has led to over 85 projects under the Saudi Green Initiative, focusing on energy efficiency and emission reduction. These government incentives are crucial in promoting sustainable construction practices.
Climate change awareness is also pushing the adoption of sustainable building practices. In Saudi Arabia, the number of LEED-certified projects is rising, with 1,851 approved and 244 achieving Gold certification. This growing environmental consciousness is encouraging more people to consider eco-friendly homes.
Consumer surveys show a preference for energy-efficient homes, spurred by stricter environmental regulations. These rules ensure that new developments are both eco-friendly and efficient, further boosting the demand for sustainable living options.
As sustainability becomes a priority, interest in eco-friendly homes is set to rise, driven by government initiatives, climate awareness, and consumer preferences.
Sources: Arab News, Mordor Intelligence
13) Property values along Jeddah's metro routes will rise with the metro system expansion
Jeddah's metro expansion is set to boost property values along its routes.
Take Dubai, for example. Properties within a 15-minute walk to metro stations have seen a noticeable uptick in both purchase and rental prices. This isn't just a local phenomenon; global studies consistently show that being near a metro station increases residential property value. It's a trend that savvy investors are watching closely.
Look at Washington, D.C., where homes closer to Metro stations fetch higher prices. Specifically, houses within a quarter mile of a station sold for 8.6% more. For every 100 feet closer, prices jumped by $1,636. This kind of data suggests that Jeddah might see similar trends as its metro system grows.
But it's not just about residential properties. The metro expansion is likely to draw in commercial development too. In cities with new metro lines, commercial activity tends to increase, which in turn boosts property values. It's a win-win for both residents and businesses.
Another factor to consider is convenience. Reduced commute times and better accessibility are huge selling points. People are willing to pay more for the ease of getting around, as seen in cities with similar infrastructure upgrades. This makes properties near metro stations even more attractive.
So, if you're thinking about investing in Jeddah, keep an eye on those metro routes. The potential for property value increases is significant, and the expansion could be a game-changer for the city's real estate market.
Sources: Consultancy ME, Freddie Mac, Economy Middle East
14) Coastal properties will undergo more scrutiny amid rising environmental concerns
Coastal properties in Jeddah are facing increased scrutiny due to environmental concerns like rising sea levels and coastal erosion.
Back in 2023 and 2024, experts warned that 24 coastal districts in Jeddah could be partially submerged if sea levels rise by just one meter by 2100. This is a big deal for the infrastructure and natural environment along the coast, making it a hot topic for potential buyers.
Local governments are stepping up with new regulations, focusing on integrated waterfront development. They're working on enhancing resilience and preserving cultural heritage while promoting social equity. Expect to see more environmental impact assessments for new coastal projects, as authorities aim to protect these vulnerable areas.
Financially, owning a coastal property can be pricey. Insurance premiums for coastal commercial properties are higher than those inland, thanks to the increased risk of natural disasters like flooding and erosion. This has been highlighted in various case studies showing the damage from extreme weather events.
These financial and environmental factors are why coastal properties are under the microscope. Stakeholders are keen to understand and mitigate the risks involved, making it crucial for potential buyers to stay informed.
For those considering a purchase, it's essential to weigh these risks and understand the local government's proactive measures. Being aware of the potential challenges and costs can help in making a more informed decision.
Sources: Oxford Academic, King Abdulaziz University, LandesBlosch
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.
15) Jeddah will attract more foreign buyers as it becomes a popular expatriate destination
Jeddah is becoming a hotspot for expatriates, and foreign property buyers are on the rise.
The luxury real estate market in Saudi Arabia is booming, with its value expected to jump from USD 13.75 billion in 2023 to USD 15.76 billion by 2029. This growth is a big draw for expatriates eyeing upscale properties. Plus, Vision 2030 has eased property ownership rules for foreigners, making it easier for global investors to dive into the market.
Jeddah's infrastructure is getting a major facelift, thanks to projects like the Jeddah Central Project, which aims to add over 17,000 housing units and 2,700 hotel rooms by 2027. These developments, along with the rise of smart cities, boost the city's allure for foreign buyers. The introduction of long-term residency visas sweetens the deal by offering stability and perks.
The city's expatriate community is growing, with the population expected to surpass 5.5 million by 2024. Jeddah's lively cultural scene, featuring events like the Jeddah Season and the Red Sea International Film Festival, makes it a magnet for expatriates. Media coverage and surveys also highlight the increasing interest of expatriates in relocating to Jeddah.
Sources: World Population Review, Saudi Build, Adventure Backpack
16) Property prices in Al-Basateen will decrease due to oversupply
The Al-Basateen area in Jeddah is seeing a surge in new residential units.
In 2023, the National Housing Company added 757 new units, and by mid-2024, Jeddah welcomed another 11,300 units. This construction boom is leading to an oversupply of housing in the area.
As more properties hit the market, the supply of rental units is starting to outpace demand. This mirrors trends in other parts of Jeddah and even in cities like Riyadh, where occupancy rates have dropped. With more choices, tenants are opting for newer properties with modern amenities, leaving older rentals with less interest.
Real estate agencies note a shift in tenant preferences, causing older properties to lose their appeal. This change is adding to the oversupply issue. Local real estate agents also report difficulty in selling properties in Al-Basateen, hinting at a slowdown in demand.
Sources: Jeddah Construct, AV Nation
17) Luxury property investments in Al-Shati will increase with new beachfront developments
The Al-Shati neighborhood in Jeddah is becoming a hotspot for luxury property investments thanks to exciting new beachfront developments.
In Jeddah, the appetite for luxury homes is growing, fueled by economic diversification and rising disposable incomes. This makes high-end properties attractive to both locals and expatriates. Al-Shati is catching the wave, with property prices climbing steadily.
One standout project is the SR485 million development by Darco Real Estate Company, featuring 28 buildings and over 500 residential units. This luxurious setup is just a stone's throw from Jeddah’s top tourist attractions, making it a prime spot for investors.
Government initiatives like the Vision 2030 plan are also in play, boosting tourism and real estate development in Jeddah. These efforts create a welcoming environment for luxury property investments, especially in Al-Shati.
Foreign investors are taking note, thanks to eased regulations on foreign ownership. This has led to a surge in interest in Jeddah's real estate market, with Al-Shati being a key area of focus.
With these developments, Al-Shati is poised to become a prime destination for luxury living, drawing in both local and international investors eager to capitalize on the neighborhood's growing appeal.
Sources: Data Insights Market, Kanebridge News ME, Skyline Holding
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18) Al-Mohammadiyah will attract young professionals with new co-working spaces
The Al-Mohammadiyah district in Jeddah is quickly becoming a hotspot for young professionals, thanks to the rise of new coworking spaces.
One standout example is The Hive, which opened in early 2024 and rapidly filled up to nearly 70% capacity. This reflects a growing trend in Jeddah, where the demand for flexible workspaces is on the rise. With projections pointing to over 150 flexible office locations in key cities like Jeddah, it's clear that the city is adapting to the needs of modern workers.
Young professionals are drawn to coworking spaces that offer amenities like ergonomic chairs and high-speed WiFi. These features are becoming more common in Jeddah, making it an attractive option for the city's youthful population. With about 41% of Jeddah's residents under 24, there's a strong potential for coworking spaces in Al-Mohammadiyah to thrive.
Government initiatives under Saudi Arabia's Vision 2030 are also playing a role in this shift. By supporting entrepreneurship and innovation, these initiatives are likely to spur the development of coworking spaces in areas like Al-Mohammadiyah. This aligns with the city's increasing real estate transactions, hinting at potential investment opportunities in the district.
Media coverage is also shining a light on this trend, with features on new developments in Al-Mohammadiyah. This attention can further boost the area's appeal to young professionals, making it a prime location for those seeking a dynamic work environment.
As coworking spaces continue to pop up, Al-Mohammadiyah is poised to become a vibrant hub for young professionals looking for flexible work options in Jeddah.
Sources: Coworkingers, Mordor Intelligence, UN Habitat, Cityscape Intelligence
19) Central Jeddah will see higher rental yields as demand for city living rises
Rental yields in central Jeddah are on the rise as more people are drawn to city living.
The buzz around the Jeddah Central Project, launched in 2021, is transforming the city. Imagine 5.7 million square meters turning into a vibrant hub with sleek homes, bustling shops, and exciting entertainment spots. This makeover is set to make central Jeddah a hot spot for property seekers.
Jeddah's diverse population is a key player here. With 2.13 million expatriates compared to 1.9 million Saudis, the city is a melting pot. This mix, especially the influx of non-Saudis, is pushing up the demand for rentals, making it a landlord's dream.
Part of the grand Vision 2030, the Jeddah Central Project is more than just buildings. It's about boosting the Saudi economy and upping the living standards. The government's all in, aiming to make Jeddah a top choice for city dwellers.
Think of the new infrastructure: a marina, beach resorts, and trendy cafes. These aren't just amenities; they're lifestyle upgrades. Such enhancements are expected to draw more residents to central Jeddah, further driving up rental yields.
With these changes, central Jeddah is becoming a magnet for those seeking a modern urban lifestyle, promising higher returns for property investors.
Sources: Vision 2030, Arab News
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.