Authored by the expert who managed and guided the team behind the Saudi Arabia Property Pack
Yes, the analysis of Riyadh's property market is included in our pack
Riyadh's real estate market is going through one of its most significant transformations ever, with new foreign ownership laws taking effect in January 2026 and a five-year rent freeze reshaping how buyers and investors approach the capital.
In this blog post, we cover the current housing prices in Riyadh, market trends, neighborhood dynamics, and what you need to know as a foreign buyer looking at the Saudi capital in 2026.
We constantly update this blog post to make sure you get the freshest data and insights available.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Riyadh.
How's the real estate market going in Riyadh in 2026?
What's the average days-on-market in Riyadh in 2026?
As of early 2026, the estimated average days-on-market for residential properties in Riyadh is around 45 to 60 days, with apartments typically moving faster than villas due to stronger demand and lower price points.
The realistic range for most typical listings in Riyadh spans from 35 days for well-priced apartments in sought-after northern districts to 75 days or more for villas priced above market expectations or located in less connected areas.
Compared to 2023 and 2024, when Riyadh saw rapid transaction activity and strong price surges of over 8% annually, days-on-market has lengthened slightly as affordability pressures and higher financing costs have made buyers more selective about what they purchase.
Are properties selling above or below asking in Riyadh in 2026?
As of early 2026, the estimated average sale-to-asking price ratio for residential properties in Riyadh is around 98%, meaning most homes sell with a modest discount from the original asking price after negotiation.
Roughly 10% to 15% of properties in prime northern districts like Al Malqa, Al Narjis, and Hittin sell at or above asking price, while the remaining 85% to 90% sell at or slightly below asking, and we are fairly confident in this estimate based on consistent transaction and pricing patterns reported by major consultancies.
Bidding wars and above-asking sales in Riyadh are most likely for well-finished villas in northern growth corridors and modern apartments near the King Abdullah Financial District or Riyadh Metro stations, where limited supply meets strong demand from expats and executives relocating under Vision 2030.
By the way, you will find much more detailed data in our property pack covering the real estate market in Riyadh.
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.
What kinds of residential properties can I realistically buy in Riyadh?
What property types dominate in Riyadh right now?
The estimated breakdown of residential properties available for sale in Riyadh in 2026 is roughly 55% apartments, 35% villas and standalone houses, and 10% townhouses and duplexes, reflecting the city's rapid urbanization and the push for higher-density housing along business corridors.
Apartments represent the largest share of the Riyadh real estate market right now, driven by affordability constraints and the influx of young professionals and expat workers who need housing near employment centers.
Apartments became so prevalent in Riyadh because the city's population is projected to reach 9.6 million by 2030, and developers have responded to this surge by building mid-rise and high-rise residential projects faster than villas, especially in accessible locations near the Riyadh Metro and major highways.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Riyadh right now?
The estimated share of new-build properties among all residential listings in Riyadh is around 30% to 40%, reflecting a substantial development pipeline as the city races to meet housing demand under Vision 2030.
As of early 2026, the neighborhoods with the highest concentration of new-build developments in Riyadh include Al Narjis, Al Qirawan, Hittin, and Al Malqa in the north, as well as areas around mega-projects like New Murabba and the Diriyah Gate development, where master-planned communities are delivering thousands of units.
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Which neighborhoods are improving fastest in Riyadh in 2026?
Which areas in Riyadh are gentrifying in 2026?
As of early 2026, the top neighborhoods in Riyadh showing the clearest signs of gentrification include Al Sulaymaniyah, Al Malaz, Al Olaya's edges, and areas surrounding the Al Murabba district, where older low-rise stock is being upgraded or replaced as demand for centrally located housing intensifies.
Visible changes indicating gentrification in these Riyadh areas include the arrival of upscale cafes and co-working spaces along streets that were previously dominated by car repair shops, the renovation of older apartment blocks with modern finishes, and a noticeable shift toward younger Saudi professionals and expat families moving in from outer suburbs.
Price appreciation in these gentrifying Riyadh neighborhoods over the past two to three years has ranged from 15% to 30%, with Al Sulaymaniyah and central Olaya-adjacent streets seeing some of the strongest gains as commuters prioritize shorter travel times to business districts.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Riyadh.
Where are infrastructure projects boosting demand in Riyadh in 2026?
As of early 2026, the top areas in Riyadh where major infrastructure projects are boosting housing demand include the King Abdullah Financial District (KAFD) corridor, Al Aqiq, districts along the Riyadh Metro's Blue and Orange lines, and the zone surrounding the New Murabba mega-project northwest of the city center.
The specific infrastructure projects driving demand in Riyadh include the 176-kilometer Riyadh Metro system, which began phased operations in late 2024 and early 2025, the New Murabba development featuring the Mukaab landmark and over 100,000 housing units, the Diriyah Gate cultural and tourism district, and the King Salman Park urban green space project.
The estimated timeline for completion of these major Riyadh projects varies: the Metro is operational and expanding services through 2026, New Murabba's first residential phases are expected around 2027-2028, Diriyah Gate is delivering in phases through 2030, and King Salman Park is scheduled for completion by 2030.
The typical price impact on Riyadh properties near these infrastructure projects shows a 5% to 15% premium once a project is announced, with an additional 10% to 20% uplift by the time construction is completed and the infrastructure is fully operational, as buyers price in improved accessibility and neighborhood prestige.
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.
What do locals and insiders say the market feels like in Riyadh?
Do people think homes are overpriced in Riyadh in 2026?
As of early 2026, the general sentiment among Riyadh locals and market insiders is that homes are indeed overpriced relative to typical household incomes, which is why the government intervened with a five-year rent freeze in September 2025 to address affordability concerns.
Locals who argue homes are overpriced in Riyadh typically point to the fact that apartment prices have surged around 75% over the past five years while median household income has not kept pace, making monthly mortgage payments a significant burden even for middle-class Saudi families.
Those who believe Riyadh prices are fair argue that strong job growth from Vision 2030 corporate relocations, limited prime land supply in northern districts, and the city's transformation into a global business hub justify current valuations, especially in sought-after neighborhoods near KAFD.
The price-to-income ratio in Riyadh is estimated at around 8 to 10 times annual household income for a median-priced home, which is higher than the Saudi national average of around 6 to 7 times and reflects the capital's premium positioning and acute supply-demand imbalance.
What are common buyer mistakes people regret in Riyadh right now?
The most frequently cited buyer mistake in Riyadh is underestimating the importance of commute times and road access, as many buyers purchase homes in seemingly attractive new developments only to discover that daily traffic to central business districts can add 45 minutes or more each way due to Riyadh's ring road congestion.
The second most common mistake buyers mention regretting in Riyadh is purchasing property based on a mega-project headline like New Murabba without verifying the actual delivery timeline and surrounding infrastructure, which often results in living in an incomplete neighborhood for years while waiting for promised amenities to materialize.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Riyadh.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Riyadh.
Get the full checklist for your due diligence in Riyadh
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How easy is it for foreigners to buy in Riyadh in 2026?
Do foreigners face extra challenges in Riyadh right now?
The estimated overall difficulty level for foreigners buying property in Riyadh in 2026 is moderate to high compared to local buyers, as the new foreign ownership law that took effect in January 2026 allows ownership in designated zones but still requires navigating geographic restrictions, registration requirements, and a transaction fee of up to 5% of property value.
Specific legal restrictions applying to foreign buyers in Riyadh include the requirement to purchase only within zones designated by the Real Estate General Authority, a limit of one residential property for foreign residents outside designated zones, and the prohibition on ownership in Mecca and Medina except under narrow conditions for Muslims.
Practical challenges foreigners commonly encounter in Riyadh include the fact that all official documentation and the Ejar rental registration platform are primarily in Arabic, that bank mortgage underwriting for non-Saudis requires Premium Residency or employment with a large recognized company, and that the implementing regulations defining exact zone boundaries are still being rolled out through the new Saudi Properties digital platform.
We will tell you more in our blog article about foreigner property ownership in Riyadh.
Do banks lend to foreigners in Riyadh in 2026?
As of early 2026, mortgage financing is available to foreign buyers in Riyadh but more selectively than for Saudi nationals, with several major banks including Saudi Fransi Bank, Riyad Bank, and Al Rajhi Bank offering products to non-Saudis who meet stricter eligibility criteria.
Foreign buyers in Riyadh can typically expect loan-to-value ratios of 60% to 70%, meaning down payments of 30% to 40% are standard, with interest rates ranging from approximately 4.1% to 5% depending on the bank, loan term, and borrower profile.
Banks in Riyadh typically require foreign mortgage applicants to provide a valid Iqama residence permit, proof of employment with a recognized company, a minimum monthly salary of SAR 15,000 to SAR 25,000 depending on the lender, six to twelve months of bank statements, and in some cases Premium Residency status.
You can also read our latest update about mortgage and interest rates in Saudi Arabia.
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.
How risky is buying in Riyadh compared to other nearby markets?
Is Riyadh more volatile than nearby places in 2026?
As of early 2026, Riyadh shows moderate price volatility compared to Dubai and Doha, with Riyadh's price movements driven more by policy interventions and project-based demand than by speculative investor cycles that characterize Dubai's more pronounced boom-and-bust patterns.
Over the past decade, Riyadh has experienced steadier price growth with annual increases typically ranging from 3% to 10%, while Dubai saw sharper swings including a 25% correction between 2014 and 2019 followed by a rapid 50% rebound through 2023, making Dubai more sensitive to global investor sentiment and liquidity shifts.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Riyadh.
Is Riyadh resilient during downturns historically?
Riyadh has historically shown moderate resilience during economic downturns, supported by the government's role as the primary economic driver and the city's status as Saudi Arabia's administrative and commercial capital, which keeps demand more stable than in purely investor-driven markets.
During the oil price collapse of 2014-2016, Riyadh residential prices softened by an estimated 5% to 10% over two years before gradually recovering as Vision 2030 spending began, making the correction relatively shallow compared to other Gulf cities that saw steeper declines.
Property types and neighborhoods in Riyadh that have historically held value best during downturns include mid-range apartments in central districts like Al Olaya and Al Wurud, which benefit from consistent rental demand from government employees and established businesses, as well as family villas in mature northern neighborhoods with good school access.
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How strong is rental demand behind the scenes in Riyadh in 2026?
Is long-term rental demand growing in Riyadh in 2026?
As of early 2026, long-term rental demand in Riyadh remains structurally strong and is growing faster than new supply can accommodate, although headline rent growth is now capped by the five-year rent freeze that began in September 2025.
The tenant demographics driving long-term rental demand in Riyadh include young Saudi professionals entering the workforce, expat families relocating for Vision 2030 corporate headquarters moves, single foreign workers in finance and technology sectors, and government employees stationed in the capital.
The neighborhoods in Riyadh with the strongest long-term rental demand right now include Al Olaya and Al Wurud for professionals seeking central locations, Hittin and Al Nakheel for expat families wanting compound-style living, and Al Malqa and Al Narjis for those prioritizing newer apartments near northern business parks.
You might want to check our latest analysis about rental yields in Riyadh.
Is short-term rental demand growing in Riyadh in 2026?
The five-year rent freeze in Riyadh applies specifically to standard residential and commercial leases registered on the Ejar platform, while short-term rental operations remain subject to separate tourism and hospitality regulations that are still evolving as Saudi Arabia expands its tourism infrastructure.
As of early 2026, short-term rental demand in Riyadh is growing moderately, driven by increased business travel, major events like entertainment and sports conferences, and the city's positioning as a regional corporate hub attracting visiting executives.
The current estimated average occupancy rate for short-term rentals in Riyadh is around 35% to 40% based on available platform data, with significant variation depending on location and seasonality, as units near KAFD and central business areas perform considerably better than suburban listings.
Guest demographics driving short-term rental demand in Riyadh include business travelers attending conferences and corporate meetings, regional tourists from other Gulf countries visiting for shopping and entertainment, and professionals on temporary work assignments who prefer furnished accommodations over hotels.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Riyadh.
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 are the realistic short-term and long-term projections for Riyadh in 2026?
What's the 12-month outlook for demand in Riyadh in 2026?
As of early 2026, the 12-month demand outlook for residential property in Riyadh is solid but more price-sensitive than in previous years, as buyers remain active but are increasingly selective due to affordability constraints and tighter financing conditions.
The key factors most likely to influence Riyadh housing demand over the next 12 months include the pace of corporate relocations under Vision 2030, the implementation details of the new foreign ownership law and designated zones, and whether Saudi Central Bank policy continues to ease rates following the Federal Reserve.
Forecasted price movement for Riyadh over the next 12 months is estimated at 5% to 10% growth, with stronger gains of 8% to 15% possible in prime northern districts and more modest appreciation of 2% to 5% in areas with higher supply or weaker connectivity.
By the way, we also have an update regarding price forecasts in Saudi Arabia.
What's the 3-5 year outlook for housing in Riyadh in 2026?
As of early 2026, the 3-5 year outlook for housing prices and demand in Riyadh remains positive, with the city expected to stay one of the Gulf's most demand-supported residential markets as Vision 2030 investments continue transforming it into a global business and entertainment hub.
Major development projects expected to shape Riyadh over the next 3-5 years include the New Murabba downtown district with over 100,000 housing units, the Diriyah Gate cultural destination, King Salman Park, the full rollout of Riyadh Metro services, and continued expansion of the King Abdullah Financial District ecosystem.
The single biggest uncertainty that could alter Riyadh's 3-5 year outlook is whether new housing supply, projected at 57,000 units in 2026-2027 alone, arrives fast enough to meet demand or whether delivery delays and financing constraints create either continued price pressure or localized oversupply in certain corridors.
Are demographics or other trends pushing prices up in Riyadh in 2026?
As of early 2026, demographic trends are a major upward force on Riyadh housing prices, with the city's population projected to grow from around 8 million today to 9.6 million by 2030, creating demand for hundreds of thousands of additional housing units.
The specific demographic shifts most affecting Riyadh prices include the large-scale relocation of multinational corporate headquarters to the capital under Vision 2030, the growth of Saudi Arabia's young workforce entering the housing market, and continued expat migration to fill specialized roles in finance, technology, and entertainment sectors.
Non-demographic trends also pushing Riyadh prices include the "gravity shift" of business activity toward new districts like KAFD and New Murabba, the Premium Residency program attracting high-net-worth foreign residents, and the general premiumization of northern Riyadh as infrastructure improves and lifestyle amenities expand.
These demographic and trend-driven price pressures are expected to continue in Riyadh through at least 2030 and likely beyond, as Vision 2030's transformation of the city into a diversified economic hub is a long-term structural shift rather than a short-term cycle.
What scenario would cause a downturn in Riyadh in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Riyadh is a sustained credit tightening where banks significantly reduce mortgage availability due to liquidity constraints, which would sharply lower transaction volumes and put downward pressure on prices in non-prime segments.
Early warning signs that a downturn may be beginning in Riyadh would include a sustained drop in transaction volumes reported by the Ministry of Justice, a widening gap between asking prices and actual sale prices, an increase in days-on-market beyond 90 days across multiple districts, and reports of Saudi banks tightening mortgage underwriting standards.
Based on historical patterns, a potential downturn in Riyadh could realistically see prices decline by 5% to 15% over 12 to 24 months in a moderate stress scenario, with recovery typically taking 2 to 3 years once credit conditions normalize and confidence returns.
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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 Riyadh, 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 | Why it's authoritative | How we used it |
|---|---|---|
| GASTAT Real Estate Price Index | This is Saudi Arabia's official statistics agency and its REPI is the baseline reference for price trends across the Kingdom. | We used it to anchor whether Riyadh prices are accelerating or cooling going into early 2026. We also used the quarterly breakdowns to separate real momentum from short-term noise. |
| Saudi Central Bank Inflation Report | SAMA is the central bank, and its inflation reporting is among the most tightly sourced macro data in the Kingdom. | We used it to corroborate national real estate price trends and the rate environment. We also used it to frame affordability as a key driver of 2026 demand. |
| Ministry of Justice Transaction Data | This is the official government source for transaction reporting and real estate dashboards in Saudi Arabia. | We used it to anchor market liquidity by tracking how many deals are actually closing. We also used it to triangulate transaction volume trends cited by private research. |
| REGA Foreign Ownership Law | REGA is the sector regulator and its law hub is the official source for foreign ownership rules taking effect in 2026. | We used it to explain what changed for foreigners in 2026 without relying on rumors. We also used it to set realistic expectations about zones and implementing regulations. |
| Cavendish Maxwell Market Reports | Cavendish Maxwell is an established regional real estate consultancy with transparent, data-referenced market reports. | We used it for Riyadh-specific price-per-sqm data, transaction counts, rent growth, and supply pipeline estimates. We also used it to translate current conditions into 2026 implications. |
| Knight Frank Saudi Arabia Research | Knight Frank is a major global property consultancy with consistent research methods and repeatable reporting standards. | We used it to cross-check Riyadh price levels and demand direction in well-connected districts. We also used it as an external second opinion against local regulator datasets. |
| PIF New Murabba Project Page | PIF is the Kingdom's flagship investment vehicle, and this page is the official project description for New Murabba. | We used it to map where future supply and gravity shifts could happen in Riyadh. We also used it to connect mega-project timelines to neighborhood-level demand patterns. |
| Saudi Press Agency Metro Announcement | SPA is the state press agency, and this item quotes the official Royal Commission for Riyadh City schedule. | We used it to identify where accessibility improved most recently with the Metro rollout. We also used it to explain why near-transit premiums are appearing in certain districts. |
| Dubai Land Department RPPI | This is an official, government-published index for Dubai, useful for comparing volatility across nearby Gulf markets. | We used it as a benchmark market with a well-defined public index. We also used it to compare boom-and-bust sensitivity versus Riyadh's policy-led cycle. |
| AirDNA Riyadh Data | AirDNA is a widely used short-term rental data provider with a consistent approach to occupancy and rate tracking. | We used it to quantify short-term rental demand signals instead of guessing. We also used it cautiously as directional data and cross-checked it with policy context. |
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