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 property market in January 2026 is shaped by a mix of strong demand, new infrastructure like the Metro, and government interventions like the rent freeze.
This article breaks down the current housing prices in Riyadh, what's driving them, and where they might be heading in the coming years.
We constantly update this blog post to reflect the latest data and market shifts.
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.
Insights
- Riyadh property prices rose around 10% in 2025, but the pace is slowing as affordability limits kick in and official indexes show cooling momentum into late 2025.
- The September 2025 rent freeze in Riyadh, lasting five years, has shifted investor focus from rental growth speculation toward long-term quality holdings.
- Villas near Riyadh Metro stations have seen price increases of up to 78% since 2023, with homes closer to stations costing about SAR 19 more per square meter for every 100 meters nearer.
- Townhouses and duplexes in Riyadh are emerging as the fastest-appreciating property type, as buyers seek more space than apartments without paying full villa prices.
- Ar Rimal leads Riyadh apartment transactions while Al Janadriyah dominates villa sales, making these east and northeast districts the current hotspots for residential demand.
- Riyadh's population is approaching 8 million and is projected to reach 9.6 million by 2030, creating sustained demand for around 305,000 new homes over that period.
- SAMA's repo rate dropped to 4.25% by late 2025, improving mortgage affordability, but high property prices mean monthly payments remain a barrier for many buyers.
- Riyadh is set to receive 57,000 new housing units in 2026 and 2027, which could ease price pressures if supply catches up with demand in key districts.
- Properties within a 15-minute walk of a Riyadh Metro station already benefit from measurable price premiums, with about 1.5 million residents (18% of the city) enjoying this accessibility advantage.
What are the current property price trends in Riyadh as of 2026?
What is the average house price in Riyadh as of 2026?
As of early 2026, the estimated average house price in Riyadh is around SAR 2.3 million (roughly $613,000 USD or about €560,000 EUR), which blends a high volume of apartments with fewer but more expensive villas.
When you look at price per square meter in Riyadh in 2026, apartments average around SAR 6,750 per sqm ($1,800 USD or €1,645 EUR), while villas come in slightly higher at about SAR 7,000 per sqm ($1,867 USD or €1,705 EUR).
The realistic price range that covers roughly 80% of property purchases in Riyadh stretches from about SAR 550,000 for a modest apartment in the east to SAR 4.5 million for a well-located villa in the north, which in dollar terms is roughly $147,000 to $1.2 million USD (or €134,000 to €1.1 million EUR).
How much have property prices increased in Riyadh over the past 12 months?
Riyadh residential property prices increased by an estimated 8% to 12% over the past 12 months, with a central estimate of around 10% year-over-year growth for mainstream housing.
This growth varied by property type, with villas in Riyadh rising closer to 10% to 11%, apartments up around 7% to 10%, and townhouses somewhere in between, depending on the district and project quality.
The single most significant factor behind this price movement was the continued influx of jobs and households into Riyadh, driven by the government's headquarters relocation program and Vision 2030 investments that keep pulling workers and families into the capital.
Which neighborhoods have the fastest rising property prices in Riyadh as of 2026?
As of early 2026, the neighborhoods with the fastest rising property prices in Riyadh include Ar Rimal and Al Janadriyah in the east and northeast, plus Al Narjis and Al Yasmin in the north, where demand pressure from new households and infrastructure improvements is strongest.
Estimated annual price growth in these top Riyadh neighborhoods ranges from about 12% to 18%, with Ar Rimal and Al Janadriyah often at the higher end due to their combination of relative affordability and new project launches.
The main demand driver behind these fast-rising prices is the expansion of family-oriented housing stock in newer masterplanned communities, combined with improved Metro access and proximity to employment centers pulling workers north and east.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Riyadh.
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.
Which property types are increasing faster in value in Riyadh as of 2026?
As of early 2026, the ranking of property types by value appreciation rate in Riyadh places townhouses and duplexes at the top, followed by mid-market apartments in well-connected districts, and then villas, which remain strong but face more affordability headwinds.
The top-performing segment, townhouses and duplexes in Riyadh, is appreciating at an estimated 10% to 14% annually, as these "middle formats" capture buyers who want more space than an apartment without stretching to a full villa budget.
The main reason townhouses are outperforming is that they hit a sweet spot in Riyadh's current market, where rising prices have pushed many families out of the villa bracket while apartments feel too cramped for growing households.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much do properties cost in Riyadh?
- How much should you pay for a house in Riyadh?
- How much should you pay for an apartment in Riyadh?
- How much should you pay for a studio in Riyadh?
What is driving property prices up or down in Riyadh as of 2026?
As of early 2026, the top three factors driving Riyadh property prices are the continued influx of jobs and households from the headquarters relocation program, the transformative effect of the Riyadh Metro on accessibility, and the government's rent freeze policy that signals serious attention to affordability.
The single strongest upward pressure on Riyadh property prices right now comes from employment growth, as hundreds of multinational headquarters have relocated to the capital under Vision 2030, bringing high-earning professionals who need housing in a market where supply has not kept pace.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Riyadh here.
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What is the property price forecast for Riyadh in 2026?
How much are property prices expected to increase in Riyadh in 2026?
As of early 2026, Riyadh property prices are expected to increase by about 4% to 7% over the full year, with a central estimate around 5.5%, which is positive but notably slower than the double-digit gains of recent years.
The range of forecasts from different analysts for Riyadh price growth in 2026 varies from a conservative 3% to an optimistic 8%, depending on assumptions about supply delivery, affordability thresholds, and potential policy changes.
The main assumption underlying most forecasts is that Riyadh will continue attracting jobs and residents under Vision 2030, but that affordability pressures and the rent freeze will cap the upside compared to the hotter years of 2022 to 2024.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Riyadh.
Which neighborhoods will see the highest price growth in Riyadh in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in Riyadh are Ar Rimal and Al Janadriyah in the east and northeast, plus Al Narjis, Al Yasmin, and Al Malqa in the north, where transaction volumes and infrastructure momentum are strongest.
Projected price growth for these top Riyadh neighborhoods in 2026 ranges from 7% to 12%, outpacing the city average because they combine affordability relative to central areas with new supply and Metro connectivity.
The primary catalyst driving expected growth in these areas is the Riyadh Metro system, which has already pushed property values up by measurable premiums near stations, and this effect will deepen as transit use becomes more embedded in daily life.
One emerging neighborhood that could surprise with higher-than-expected growth is Al Munsiyah, which sits in the eastern growth corridor and is starting to attract developers drawn by lower land costs and improving road links.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Riyadh.
What property types will appreciate the most in Riyadh in 2026?
As of early 2026, the property type expected to appreciate the most in Riyadh is townhouses and duplexes, which offer a middle ground between apartments and villas that matches what many Riyadh households can actually afford.
Projected appreciation for townhouses and duplexes in Riyadh in 2026 is around 8% to 12%, reflecting strong demand from families who have been priced out of standalone villas but still want more space and privacy than an apartment provides.
The main demand trend driving this is household formation among young Saudi families, many of whom are entering the market for the first time and gravitating toward formats that balance space, price, and access to good schools and services.
The property type expected to underperform in Riyadh in 2026 is entry-level apartments in oversupplied pockets, where a wave of new deliveries could outpace buyer absorption and flatten prices in certain districts.
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 will interest rates affect property prices in Riyadh in 2026?
As of early 2026, lower interest rates are providing support to Riyadh property prices by making mortgage payments more affordable, though high price levels mean the boost is felt more in transaction volumes than in accelerating price gains.
SAMA's repo rate stood at 4.25% as of late 2025, down meaningfully from prior highs, and mortgage rates in Riyadh are expected to remain stable or edge slightly lower if global conditions permit further easing.
A 1% change in interest rates in Riyadh typically shifts monthly mortgage payments by about 10% to 12%, which for a SAR 2 million loan translates to roughly SAR 1,500 to SAR 2,000 per month, enough to pull some marginal buyers into or out of the market.
You can also read our latest update about mortgage and interest rates in Saudi Arabia.
What are the biggest risks for property prices in Riyadh in 2026?
As of early 2026, the three biggest risks for Riyadh property prices are affordability exhaustion after years of strong gains, the possibility of additional government interventions if housing costs remain politically sensitive, and the chance that new supply arrives faster than demand can absorb it in certain corridors.
The single risk with the highest probability of materializing in Riyadh in 2026 is affordability pressure, where buyer budgets simply cannot keep pace with prices, leading to longer selling times and softer growth in the most stretched segments like large villas.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Riyadh.
Is it a good time to buy a rental property in Riyadh in 2026?
As of early 2026, it can still be a good time to buy a rental property in Riyadh, but the strategy has shifted from banking on rapid rent growth to focusing on quality locations and long-term holds, since the five-year rent freeze limits short-term upside.
The strongest argument in favor of buying now is that Riyadh's fundamentals remain solid, with jobs, population, and infrastructure all growing, which supports occupancy rates and positions well-located properties for appreciation once the freeze lifts.
The strongest argument for waiting is that high purchase prices mean yields are compressed, and if additional supply hits the market faster than expected in 2026 and 2027, there may be better entry points ahead for patient investors.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Riyadh.
You'll also find a dedicated document about this specific question in our pack about real estate in Riyadh.
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Where will property prices be in 5 years in Riyadh?
What is the 5-year property price forecast for Riyadh as of 2026?
As of early 2026, cumulative property price growth in Riyadh over the next 5 years is expected to land between 25% and 40%, with a central estimate around 32%, reflecting continued structural demand tempered by affordability and policy management.
The range of 5-year forecasts for Riyadh spans from a conservative 25% (if supply catches up and affordability bites harder) to an optimistic 40% (if economic momentum accelerates and infrastructure boosts values further).
This translates to a projected average annual appreciation rate of about 4.5% to 7% per year over the next 5 years in Riyadh, which is solid by global standards but below the double-digit surges of the early 2020s.
The key assumption most forecasters rely on is that Riyadh will remain Saudi Arabia's primary economic magnet under Vision 2030, drawing workers, investment, and residents at a pace that sustains housing demand even as policy tools keep growth manageable.
Which areas in Riyadh will have the best price growth over the next 5 years?
The top three areas in Riyadh expected to have the best price growth over the next 5 years are Ar Rimal and Al Janadriyah in the east and northeast, and the Al Narjis to Al Malqa corridor in the north, where Metro access, new masterplanned communities, and job proximity converge.
Projected 5-year cumulative price growth for these top-performing Riyadh areas is estimated at 35% to 50%, outpacing the city average because they sit at the intersection of affordability (compared to central prime) and infrastructure investment.
This aligns closely with the shorter-term forecast, but the 5-year view amplifies the advantage of these areas because Metro effects compound as transit use deepens and new lines connect them to mega-projects like Qiddiya and Diriyah.
One currently undervalued area with strong 5-year potential is Qurtubah in the east, which offers lower entry prices today but stands to benefit from the same infrastructure and demographic tailwinds lifting its neighbors.
What property type will give the best return in Riyadh over 5 years as of 2026?
As of early 2026, the property type expected to give the best total return over 5 years in Riyadh is well-located mid-market apartments and townhouses, which combine strong appreciation potential with steady rental demand and good liquidity when it's time to sell.
Projected 5-year total return (appreciation plus rental income) for these top-performing formats in Riyadh is estimated at 50% to 70%, assuming consistent occupancy and the gradual lifting of the rent freeze toward the end of the period.
The main structural trend favoring apartments and townhouses is household formation among young Saudi families, who represent the largest buyer pool and whose budgets align best with these formats rather than expensive standalone villas.
For investors seeking the best balance of return and lower risk over 5 years in Riyadh, well-located apartments in established districts like Al Malqa or Ar Rimal offer the edge, thanks to their deeper liquidity and easier tenant turnover.
How will new infrastructure projects affect property prices in Riyadh over 5 years?
The top three major infrastructure projects expected to impact Riyadh property prices over the next 5 years are the Riyadh Metro (including planned Line 7 extensions), King Salman Park, and the Diriyah Gate development, all of which reshape accessibility and neighborhood desirability.
The typical price premium for properties near completed infrastructure projects in Riyadh has been measured at 15% to 30%, with homes within a 15-minute walk of a Metro station already commanding measurably higher prices per square meter.
The specific neighborhoods that will benefit most from these infrastructure developments include Al Malqa and Al Yasmin (near Metro and King Abdullah Financial District), areas around Diriyah (as the Gate project matures), and communities along the planned Line 7 route connecting Qiddiya, New Murabba, and the airport.
How will population growth and other factors impact property values in Riyadh in 5 years?
Riyadh's population is projected to grow at about 1.7% to 2% annually, reaching roughly 8.5 to 9 million by 2031, which translates to sustained demand for an estimated 50,000 to 60,000 new housing units per year to keep up with household formation.
The demographic shift with the strongest influence on Riyadh property demand is the youth bulge, with 62% of the population under 30, meaning waves of first-time buyers will enter the market over the next 5 years seeking affordable, well-connected homes.
Migration patterns, both domestic Saudis relocating to Riyadh for jobs and expatriates arriving under corporate headquarters programs, are expected to add hundreds of thousands of new residents over 5 years, further tightening supply and supporting prices.
The property types and areas that will benefit most from these demographic trends are apartments and townhouses in the north and east growth corridors of Riyadh, where new supply is being built and where prices remain accessible to young families entering the market.
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 is the 10 year property price outlook in Riyadh?
What is the 10-year property price prediction for Riyadh as of 2026?
As of early 2026, cumulative property price growth in Riyadh over the next 10 years is expected to fall between 55% and 90%, with a central estimate around 70%, reflecting a city that will continue growing but at a pace managed by policy and market realities.
The range of 10-year forecasts for Riyadh spans from a conservative 55% (if oil prices weaken and project phasing slows) to an optimistic 90% (if Vision 2030 accelerates and foreign investment surges post-2026 ownership reforms).
This translates to a projected average annual appreciation rate of about 4.5% to 6.5% per year over the next decade in Riyadh, which is healthy long-term growth by global city standards.
The biggest uncertainty factor in making 10-year predictions for Riyadh is oil price volatility and its downstream effect on government spending, project timelines, and the broader economic confidence that underpins housing demand.
What long-term economic factors will shape property prices in Riyadh?
The top three long-term economic factors that will shape Riyadh property prices over the next decade are the success of Saudi Arabia's economic diversification under Vision 2030, the pace of job creation in non-oil sectors, and the government's fiscal capacity to sustain mega-project investment.
The single long-term factor with the most positive impact on Riyadh property values is the establishment of the city as a regional business hub, with hundreds of multinational headquarters now based there, creating durable demand from high-earning professionals.
The single long-term factor posing the greatest structural risk is oil price dependence, because a prolonged downturn could force project delays, slow job growth, and weaken the household income growth that supports housing demand.
You'll also find a much more detailed analysis in our pack about real estate in Riyadh.
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 (General Authority for Statistics) | Saudi Arabia's official statistics agency publishing the national Real Estate Price Index. | We used it to anchor official price direction by property type and region. We also cross-checked private reports against this index for consistency. |
| SAMA (Saudi Central Bank) | The central bank's official policy rate publication. | We used it to translate interest rate conditions into mortgage affordability pressure. We also framed 2026 rate sensitivity for price scenarios. |
| SAMA Inflation Report | An official macro report from the central bank referencing real estate and monetary stance. | We used it as a second official confirmation of price trends and the interest rate backdrop. |
| JLL KSA Living Market Dynamics | JLL is a major global real estate consultancy with recurring market publications. | We used it for Riyadh-specific transaction mix and named areas that concentrate demand. |
| Argaam (citing JLL Q3 2025) | A press summary clearly attributing numbers to JLL's recognized consultancy report. | We used it for concrete Riyadh price-per-sqm levels for apartments and villas. |
| CBRE Saudi Arabia Market Review | CBRE is one of the world's largest real estate advisors with standardized research. | We used it to validate that price growth in Riyadh was still strong in late 2025. |
| Reuters (rent freeze coverage) | A top-tier global newswire with strict sourcing standards. | We used it to explain the Riyadh rent freeze and its impact on investor behavior. |
| AP News (rent freeze coverage) | A highly reputable wire service useful for confirming major policy changes. | We used it to cross-check the existence and intent of the rent freeze policy. |
| IMF Saudi Arabia Country Page | A leading international organization for macroeconomic forecasts and surveillance. | We used it to anchor 2026 GDP and inflation assumptions feeding affordability scenarios. |
| Knight Frank Residential Dashboard | A major global property consultancy with recurring research and clear sourcing. | We used it for market structure framing and mortgage and transaction context. |
| Knight Frank Metro Impact Study | A detailed white paper measuring the Riyadh Metro's effect on property values. | We used it to quantify the metro premium and identify neighborhoods benefiting from transit access. |
| New Murabba (official project site) | An official mega-project source for a flagship Riyadh development. | We used it to support the pipeline and infrastructure transformation narrative. |
| Argaam (Expo 2030 CEO remarks) | Media attributing remarks to the Expo 2030 entity's CEO with specific project references. | We used it to name Riyadh-shaping projects in a locally relevant way. |
| Reuters (inflation and housing context) | A high-trust source connecting housing costs to inflation and policy responses. | We used it to explain why housing costs are a macro and political priority heading into 2026. |
| Financial Times (affordability context) | A top global business newspaper with strong editorial standards. | We used it for big-picture affordability context while anchoring numbers on JLL and GASTAT. |
| Cavendish Maxwell (via International Finance) | A recognized real estate advisory with detailed KSA market reports. | We used it for supply pipeline data and Q3 2025 price levels by property type. |
| World Population Review | A population data aggregator using UN World Urbanization Prospects. | We used it to anchor Riyadh population estimates and growth projections. |
| Arab News (Knight Frank population study) | A major regional news outlet reporting on Knight Frank's demographic projections. | We used it for Riyadh's projected population growth to 9.6 million by 2030. |
| Global Property Guide | A respected property data aggregator with historical price analysis. | We used it for long-term price history context and mortgage market trends. |
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If you want to go deeper, you can read the following: