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Yes, the analysis of Riyadh's property market is included in our pack
Thinking about buying a 3-bedroom house in Évora? It’s a charming area in the heart of Alentejo, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other towns like Beja or Portalegre where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Portugal Property Pack.
Will property prices increase in Riyadh in 2025?
Yes, property prices in Riyadh are expected to rise in 2025, driven by a combination of economic growth and urban development initiatives.
Backed by our fresh, in-depth market analysis, we’re confident that Riyadh remains a key city for both domestic and international investors.
While there are some challenges like inflation and potential interest rate hikes, the main drivers behind Riyadh’s price growth are robust and ongoing.
The demand for housing, especially in newly developed areas, continues to outpace supply, making significant price drops unlikely. Additionally, Riyadh's strategic initiatives to become a global city are attracting more buyers and investors.
Signals pointing to a property price increase in Riyadh
Here are some factors suggesting prices could increase:
The Saudi Vision 2030 initiative is driving significant economic diversification and urban development, which is expected to boost property demand and prices in Riyadh as the city becomes a central hub for business and tourism.
Riyadh is undergoing major infrastructure projects, including new metro lines and road expansions, which will improve connectivity and accessibility, making properties in well-connected areas more desirable and likely to increase in value.
The government's focus on increasing homeownership rates through various housing programs and incentives is expected to stimulate demand, particularly among first-time buyers, contributing to upward pressure on property prices.
Riyadh's population is projected to grow significantly, driven by both natural growth and an influx of expatriates, which will increase housing demand and potentially drive up property prices.
The development of new residential and commercial districts, such as the King Abdullah Financial District, is expected to attract businesses and residents, increasing demand for nearby properties and pushing prices higher.
Signals pointing to a property price decrease in Riyadh
Here are some factors suggesting prices could fall:
Potential increases in interest rates could make borrowing more expensive, reducing the purchasing power of potential buyers and possibly cooling demand in the property market.
Economic uncertainties, such as fluctuations in oil prices, could impact investor confidence and spending power, potentially leading to a slowdown in property market activity.
If the pace of new housing developments outstrips demand, it could lead to an oversupply in certain areas, putting downward pressure on property prices.
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If property prices go up in Riyadh, how much would they increase by?
If real estate prices in Riyadh were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Riyadh appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a lovely 2-bedroom apartment in Al Olaya for 1,500,000 SAR today, don't be surprised if it's priced between 1,545,000 and 1,605,000 SAR this time next year.
To give you a better understanding, here is a table that shows 7 types of Riyadh real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (SAR) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Modern Apartment (100 sqm / 1,076 sqft) | 1,200,000 SAR | 1,236,000 SAR | 1,260,000 SAR | 1,284,000 SAR |
| Luxury Villa (300 sqm / 3,229 sqft) | 3,500,000 SAR | 3,605,000 SAR | 3,675,000 SAR | 3,745,000 SAR |
| Studio (50 sqm / 538 sqft) | 600,000 SAR | 618,000 SAR | 630,000 SAR | 642,000 SAR |
| Townhouse (200 sqm / 2,153 sqft) | 2,000,000 SAR | 2,060,000 SAR | 2,100,000 SAR | 2,140,000 SAR |
| Investment Property (75 sqm / 807 sqft) | 900,000 SAR | 927,000 SAR | 945,000 SAR | 963,000 SAR |
| Penthouse (150 sqm / 1,615 sqft) | 2,800,000 SAR | 2,884,000 SAR | 2,940,000 SAR | 2,996,000 SAR |
| Loft (120 sqm / 1,292 sqft) | 1,500,000 SAR | 1,545,000 SAR | 1,575,000 SAR | 1,605,000 SAR |
Everything you need to know is included in our Property Pack for Riyadh
If real estate prices go up in Riyadh, which areas are likely to see the biggest increases?
Today, people who want to move to Riyadh are looking for a blend of traditional charm and modern conveniences, along with vibrant social scenes, which Al Olaya delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Al Malqa has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Riyadh market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Al Olaya | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Al Malqa | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Riyadh. |
| Al Mohammadiyah | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| King Abdullah Financial District | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Al Yasmin | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Al Murabba | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Al Nakheel | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Al Sulimaniyah | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Al Hamra | Medium-High | Its proximity to central Riyadh, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Al Diriyah | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Diplomatic Quarter | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Al Safarat | High | Upcoming restoration of cultural landmarks and high-profile projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Riyadh
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Riyadh?
In 2025, Riyadh real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Villas in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Riyadh are seeing increased interest. Proximity to green spaces, international schools, and shopping centers is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In a city like Riyadh, where outdoor living is part of the lifestyle, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Riyadh's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s Vision 2030 goals, leading to price appreciation in this category.
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