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Where are the best places to invest in Jeddah right now? Is the Corniche still the top pick, or are areas like Al-Nahda, Al-Salamah, and Al-Shati gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the city. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Jeddah and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Al-Mohammadiyah District is popular with families for its spacious homes and quality schools
Families are flocking to Al-Mohammadiyah District for its spacious properties and quality schools.
Imagine living in a villa with room to breathe—Al-Mohammadiyah offers just that. You can find a 9-bedroom villa with 262 square meters or a 6-bedroom villa with 360 square meters, perfect for families who crave comfort and space.
Education is another big draw. While we don't have exact numbers on new schools, the demand for quality education is clear. The nearby British International School of Jeddah was re-accredited by the Council of International Schools in 2024, showing the area's dedication to top-notch education.
The real estate market here is buzzing. Villas are selling between SAR 2,500,000 and SAR 13,000,000, indicating a strong demand for residential properties. This makes Al-Mohammadiyah even more attractive to families looking to settle down.
Location is everything, and this district doesn't disappoint. It's close to major city amenities like the Jeddah Corniche and popular malls, adding to its appeal for those who want convenience and lifestyle in one package.
Sources: Bayut, GlobeNewswire
2) Al-Marwah District is attracting diverse investors with its mix of residential and commercial properties
Al-Marwah District is gaining popularity thanks to its unique mix of residential and commercial properties that attract diverse investors.
Jeddah's population is on the rise, with a metro area population of 4,863,000 in 2023 and expected to hit 5,022,000 by 2025. This growth means more people are looking for homes and businesses, which is pushing property prices up in Al-Marwah.
The district is buzzing with new developments. In 2023, the National Housing Company launched 757 new residential units, and by mid-2024, 11,300 more units were delivered. Future projects like the Jeddah Central project aim to add over 17,000 housing units and 2,700 hotel rooms by 2027, boosting the housing supply significantly.
Urbanization is a big deal in Saudi Arabia, with 82.1% of the population living in urban areas as of 2023. This is expected to jump to 97.6% by 2030. As more people move to cities, the demand for mixed-use properties grows, offering convenience and lifestyle benefits.
Government initiatives under Vision 2030 are also in play, focusing on sustainable urban development. This makes mixed-use properties even more appealing, as they align with the government's push for modern living spaces.
Sources: Macrotrends, Arcapita
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) Al-Hamra District is gaining attention for its modern amenities and traditional charm, driving up property values
Al-Hamra District in Jeddah is turning heads for its unique blend of modern amenities and traditional charm.
In the first half of 2024, property transactions in Jeddah surged by 38%, with a total value increase of 50%. This boom is especially noticeable in Al-Hamra, where the property market is buzzing with activity. The district's appeal is clear when you consider that prices can reach up to SAR 8,000 per square meter, much higher than Jeddah's average.
While the median price for a residential villa in Jeddah is SAR 1.5 million, Al-Hamra stands out with its premium pricing. This indicates a strong demand, driven by the district's attractive mix of modern living and cultural heritage. Real estate agencies like JLL and Knight Frank have noted this trend, highlighting Al-Hamra as a hotspot for property investment.
Jeddah Central, a massive urban development project, is reshaping the city into a world-class destination. This includes a 9.5km waterfront with sandy beaches and cultural venues, promising to enhance Al-Hamra's appeal. As these developments unfold, property values in Al-Hamra are expected to rise, making it a prime location for both locals and expatriates.
Media coverage often emphasizes Al-Hamra's unique charm, which is a magnet for those seeking a blend of the old and new. This allure is not just attracting attention but also driving up property demand and values. The district's ability to offer both modern conveniences and a touch of tradition is a key factor in its growing popularity.
With its strategic location and ongoing developments, Al-Hamra District is poised to benefit significantly. The combination of modern projects and traditional appeal is a winning formula, making it a sought-after area in Jeddah's real estate market.
Sources: MEED, Carter Murray
4) Al-Shati District is thriving with its luxury waterfront properties in high demand among affluent buyers
Al-Shati District is a hot spot for luxury waterfront properties, attracting affluent buyers.
In recent years, property prices in Al-Shati have soared. By 2023 and 2024, luxury apartments reached prices as high as SAR13,099,500. This surge shows a strong demand, making these properties a smart investment.
Sales of luxury waterfront properties in Jeddah, including Al-Shati, are climbing. The Jeddah waterfront project by Darco Real Estate, with 28 buildings and over 500 residential units, is a testament to this demand. Both local and international buyers are showing increased interest.
Al-Shati's appeal is also boosted by its media coverage. The district's strategic location near major tourist spots and its luxurious lifestyle make it a prime choice for affluent buyers. This media spotlight only adds to its allure.
Al-Shati's waterfront lifestyle is not just about luxury; it's about location. Being close to major attractions and offering high living standards, the district is a magnet for those seeking a prestigious address.
With its combination of high demand, strategic location, and luxury offerings, Al-Shati District continues to draw interest from buyers looking for a prime investment.
Sources: Gulf Construction Online, Zawya, Bayut
5) Al-Faisaliyah District is gaining attention for its strategic location near major highways, boosting connectivity
Al-Faisaliyah District is catching eyes due to its prime location near major highways, boosting connectivity.
In Saudi Arabia, improved road and highway infrastructure is a big deal, making it easier for folks to get around. This is a major plus for Al-Faisaliyah, as it means more people can easily travel to and from the district, making it a hot spot for potential buyers.
Being close to major commercial centers and business districts naturally draws attention. With Saudi Arabia hosting more business activities and international events, Al-Faisaliyah is in a sweet spot, attracting those who want to live or work nearby. This trend is backed by reports highlighting the growing importance of such strategic locations.
The local government is also pitching in to make Al-Faisaliyah a key residential area. They're rolling out marketing campaigns and infrastructure development to lure more residents and businesses. Even though Jeddah saw a dip in residential transactions in 2023, Al-Faisaliyah might still be on the up and up thanks to these efforts.
These initiatives are not just about building roads; they’re about creating a vibrant community. The district is becoming a place where people want to settle, thanks to ongoing development projects that promise a better quality of life.
So, if you're thinking about buying property, Al-Faisaliyah offers a mix of convenience and opportunity that’s hard to ignore.
Sources: Knight Frank, Zawya, Knight Frank
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6) Al-Nahda District is gaining interest for its affordable property prices and appreciation potential with improving infrastructure
Al-Nahda District is becoming a hot spot because of its affordable property prices.
Compared to pricier areas like Al Shatea and Al Murajan, Al-Nahda offers more budget-friendly options, making it a magnet for potential buyers. This affordability is a big draw for those looking to invest in property without breaking the bank.
There's also a buzz about the potential for property value appreciation in Al-Nahda. While specific projects in the district aren't highlighted, Jeddah is seeing a wave of urban development. Initiatives like the Jeddah Central project, part of Saudi Vision 2030, are set to enhance connectivity and amenities, likely boosting property demand and prices in areas like Al-Nahda.
Investors are taking note of Jeddah's real estate market growth, with a noticeable uptick in transactions. This surge suggests that investors are eyeing districts like Al-Nahda for their potential, driven by ongoing infrastructure improvements and economic growth.
Looking at similar developing districts in Jeddah, there's a clear pattern of property price appreciation. For instance, the average villa price in Riyadh and Jeddah has been on the rise since 2020, hinting at a strong potential for appreciation in Al-Nahda. This makes it an appealing choice for those seeking long-term investment gains.
Investing in Al-Nahda could be a smart move, especially with the ongoing urban development in Jeddah. The district's affordability and potential for growth make it a promising option for property buyers.
Sources: Wikipedia, Arab MLS, Skyline Holding
7) Al-Salamah District is attracting investors with its rising rental yields and steady income potential
Al-Salamah District in Jeddah is turning heads among investors, and it's all about the impressive rental yields.
Imagine owning a 2-bedroom apartment here; you'd be looking at a rental yield of 11.7% as of the third quarter of 2024. That's quite a leap compared to places like Doha, Dubai, and Abu Dhabi, where yields are about half that. This makes Al-Salamah a hotspot for those seeking solid returns.
Jeddah as a whole is buzzing with activity. In 2024, the city saw a 43.2% increase in property sales from the previous year, totaling 9,392 transactions. This surge indicates a growing interest in the area, which is promising for anyone considering a purchase.
Real estate agencies are catching on too. Reports from firms like CBRE highlight Al-Salamah's strategic location and rising demand for homes, marking it as a prime investment area. This district's growth is fueled by its appeal to both residents and investors.
Investors are sharing their success stories, noting the steady income from rentals in Al-Salamah. The high demand for rental properties here ensures a reliable stream of income, which is a major draw for those looking to invest wisely.
With its attractive yields and increasing property transactions, Al-Salamah is becoming a go-to district for investors seeking consistent returns. The district's appeal is only growing, making it a smart choice for those looking to enter the real estate market.
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.