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Property prices in Riyadh are definitively rising, with the Saudi capital leading the Kingdom in residential price growth as we reach mid-2025. The city recorded robust year-on-year increases of 8.6% in 2024, following consistent growth patterns over the past three years driven by Vision 2030 initiatives, population expansion, and infrastructure development.
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Riyadh's residential property market is experiencing strong upward momentum with prices increasing 8.6% annually as of 2024, significantly outpacing other major Saudi cities.
The market is driven by Vision 2030 projects, population growth to an expected 9.6 million by 2030, and new infrastructure developments including the Riyadh Metro system.
| Market Indicator | Current Status (2025) | Key Details |
|---|---|---|
| Annual Price Growth | 8.6% (2024) | Riyadh leads Saudi Arabia in residential price appreciation, with sustained growth expected through 2026 |
| Average Apartment Price | SAR 6,600-10,500/m² | Prime districts (Al-Olaya, Al-Sulaimaniya) command highest prices with strong demand from professionals |
| Average Villa Price | SAR 9,500-13,500/m² | Premium areas like Hittin and Al-Malqa, with villas showing sharpest recent price increases (+10.3% in Q1 2025) |
| Population Growth | 4.1% annually | Expected to reach 9.6 million by 2030, driving continued housing demand |
| Government Policy Impact | 5% transaction tax (RETT) | New Real Estate Transaction Tax introduced April 2025, with exemptions for first-time buyers up to SAR 1 million |
| Housing Supply | 1.46 million units | Supply increasing but lagging behind demand, with 115,000 new units needed annually until 2030 |
| Market Outlook | Continued growth | 8-10% annual price increases projected through 2026, supported by Vision 2030 infrastructure projects |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
What are the current average property prices in Riyadh as of June 2025?
As of June 2025, Riyadh's residential property prices vary significantly based on location and property type, with prime areas commanding premium rates.
In central and upscale districts such as Al-Olaya, Al-Sulaimaniya, and Al-Malaz, apartment prices range from SAR 6,600 to SAR 10,500 per square meter. These areas attract professionals and expatriates due to their connectivity and proximity to business districts.
Villa prices in premium neighborhoods like Hittin and Al-Malqa command between SAR 9,500 to SAR 13,500 per square meter. These exclusive areas offer larger living spaces and enhanced amenities, making them particularly attractive to affluent Saudi families and high-income expatriates.
In emerging and more affordable neighborhoods, prices remain lower, with citywide averages for apartments at approximately SAR 5,200 per square meter and villas at around SAR 6,000 per square meter. Eastern Riyadh and suburban areas like Al-Khuzama and Al-Fursan offer more accessible entry points for first-time buyers.
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How much have property prices increased in Riyadh over the past year?
Riyadh's residential property market has demonstrated robust growth over the past year, significantly outperforming other major Saudi cities.
According to the General Authority for Statistics (GASTAT), Riyadh recorded an impressive 8.6% year-on-year growth in residential property prices during 2024. This growth rate represents consistent momentum following previous years' increases of 8.6% in 2023 and 17.7% in 2022.
The first quarter of 2025 showed continued strength with overall real estate prices rising 4.3% year-on-year nationally, with the residential sector specifically gaining 5.1%. Riyadh continues to lead this growth trajectory among Saudi Arabia's major urban centers.
Transaction volumes have also surged, with residential property transactions increasing by 25% in Q3 2024 compared to the same period in 2023, reaching SAR 35.4 billion in total value. The number of individual transactions rose by 12% to 45,924 deals, indicating strong market activity.
Which neighborhoods in Riyadh are experiencing the fastest price growth?
Several prime districts in Riyadh are leading the market in price appreciation, driven by their strategic locations and ongoing development projects.
Al-Olaya, Al-Sulaimaniya, and Al-Malaz continue to see the strongest price growth due to their central locations and business district proximity. These areas benefit from excellent connectivity and access to major employment centers, making them highly sought after by professionals.
Al Muruj and Al Sahafa have emerged as growth leaders, with Al Sahafa particularly attracting foreign investors due to its modern infrastructure and strategic positioning. The area benefits from enhanced connectivity through infrastructure projects like the Circular Roads Development Program.
In 2024, Al Nakheel neighborhood recorded an average price increase of 6%, with apartment prices ranging from SAR 7,200 to SAR 10,300 per square meter. The area's appeal stems from its proximity to Al Nakheel Mall, which attracts over 200,000 weekly visitors.
Northern Riyadh districts are experiencing particularly strong growth due to massive infrastructure development, including the Riyadh North project spanning 8 million square meters, which is transforming the area with new residential, commercial, and public spaces.
What property types are seeing the biggest price increases in Riyadh?
Villa prices have demonstrated the sharpest recent increases in Riyadh's residential market, outpacing other property types significantly.
In Q1 2025, villa prices surged by 10.3% year-on-year, representing the highest growth rate among all residential property categories. This increase reflects strong demand from affluent buyers seeking larger living spaces and premium amenities.
Apartment prices, while growing at a more moderate pace, still posted a solid 1.2% increase in Q1 2025. However, over a longer timeframe, apartments have shown remarkable growth, with prices rising 75% over the past five years compared to 39% for villas.
Residential land plots have also appreciated, increasing by 5.3% year-on-year in Q1 2025. This growth reflects increasing demand from developers and individual buyers looking to build custom properties in desirable locations.
The villa segment's exceptional performance is driven by limited supply and strong demand from both Saudi nationals and expatriates seeking premium accommodations in Riyadh's expanding urban landscape.
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What are the property price forecasts for Riyadh in 2026?
Industry analysts project continued robust growth for Riyadh's property market throughout 2026, supported by ongoing Vision 2030 initiatives and infrastructure development.
Property prices in Riyadh are expected to maintain annual growth rates of 8-10% through 2026, driven by sustained population growth and urban development projects. The city's population is projected to reach 9.6 million by 2030, with a compound annual growth rate of 4.1%.
The residential market is forecast to grow by at least 4% in 2025, with momentum expected to carry into 2026. Major infrastructure projects, including the Riyadh Metro system's full implementation and continued development of northern Riyadh, will enhance property values in well-connected areas.
Vision 2030's target of achieving 70% homeownership by 2030 continues to drive government support for the residential sector, including initiatives like the Sakani program and expanded mortgage financing options.
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How is the Real Estate Transaction Tax affecting Riyadh's property market?
The Real Estate Transaction Tax (RETT) introduced in April 2025 has created a more structured and transparent property market environment in Riyadh.
The new 5% flat tax on all property transactions replaced the previous 15% VAT system, creating greater clarity for buyers and sellers. The tax applies to residential, commercial, and industrial properties regardless of development status or ownership transfer type.
First-time homebuyers benefit from expanded exemptions, with the threshold increased to SAR 1 million from the previous SAR 850,000. This policy change supports Vision 2030's goal of increasing homeownership to 70% by 2030.
By June 2025, the market has successfully absorbed the tax implementation, with transaction volumes rebounding to pre-tax levels. The clearer regulatory framework has actually enhanced investor confidence, contributing to continued price growth.
The RETT also includes measures to encourage land development and reduce speculation, including the existing "white land" tax on undeveloped urban plots exceeding 5,000 square meters.
What is driving demand for residential properties in Riyadh as of mid-2025?
Multiple converging factors are fueling strong residential demand in Riyadh as the city reaches mid-2025.
Population growth remains the primary driver, with Riyadh recording the highest volume of residential demand and rental inquiries among all major Saudi cities. The influx includes both Saudi nationals relocating for employment opportunities and expatriates attracted by the city's expanding economic opportunities.
Vision 2030 initiatives have established 540 international companies' regional headquarters in Riyadh, already exceeding the 2030 target. These companies bring thousands of professionals requiring housing, particularly in upscale neighborhoods like the Diplomatic Quarter.
The expansion of financing options has made homeownership more accessible, with over 60% of housing transactions in 2024 financed through bank mortgages. The Real Estate Development Fund (REDF) and initiatives like Saudi Real Estate Refinance Company (SRC) have increased lending capacity.
Infrastructure improvements, including the Riyadh Metro system's launch and major road developments, have enhanced connectivity and made previously less accessible areas more attractive to buyers.
How do Riyadh's property prices compare to other major Saudi cities?
| City | Annual Price Growth (2024) | Average Price Range | Market Outlook 2025-2026 |
|---|---|---|---|
| Riyadh | 8.6% | Apartments: SAR 6,600-10,500/m² Villas: SAR 9,500-13,500/m² |
8-10% continued annual growth expected |
| Jeddah | 4-6% | Apartments: SAR 3,952/m² Villas: SAR 5,658/m² |
Moderate 4-6% annual growth forecast |
| Dammam | 4-5% | Apartments: SAR 2,813/m² Villas: Lower than Riyadh/Jeddah |
Steady 4-5% growth expected |
| Khobar | 3-4% | Apartments: SAR 3,397/m² Villas: SAR 3,626/m² |
Moderate growth tied to oil sector |
| Al Baha | -18.4% | Significantly lower prices | Continued challenges expected |
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 role are foreign investors playing in Riyadh's property market?
Foreign investment is increasingly shaping Riyadh's residential property landscape, driven by regulatory reforms and economic diversification initiatives.
Recent policy changes have significantly eased foreign ownership restrictions, with January 2025 reforms allowing foreign investors to participate in companies owning real estate in Mecca and Medina. Similar liberalization efforts are expanding opportunities in Riyadh.
The expatriate population, which reached 13.4 million nationwide, plays a crucial role in driving demand. Reforms effective since March 2021 gave foreign workers greater job mobility and residence flexibility, encouraging long-term settlement and property purchases rather than temporary rental arrangements.
International companies establishing regional headquarters in Riyadh are creating sustained demand for quality housing, particularly in premium neighborhoods. Tax incentives including 30-year corporate income tax exemptions for headquarters activities are attracting substantial foreign corporate presence.
The combination of attractive rental yields (averaging 8.89% in Riyadh) and capital appreciation potential makes the city increasingly appealing to international real estate investors seeking portfolio diversification in the MENA region.
How is Saudi Vision 2030 impacting Riyadh's property prices?
Saudi Vision 2030 serves as the primary catalyst driving Riyadh's property market transformation and price appreciation.
The initiative's goal to increase national homeownership to 70% by 2030 has sparked massive government investment in housing programs. The Sakani initiative alone has facilitated over 800,000 housing contracts, creating sustained market demand.
Infrastructure mega-projects are reshaping Riyadh's urban landscape and property values. The Riyadh Metro system, King Salman Park, and Qiddiya Entertainment City are attracting residents and investors to previously less developed areas, driving price appreciation across wider geographic zones.
Economic diversification efforts have established Riyadh as the Kingdom's business hub, attracting 540 international corporate headquarters and creating thousands of high-paying jobs. This employment growth directly translates to housing demand from affluent professionals.
Vision 2030's broader economic goals are projected to grow the Saudi real estate market from USD 74.99 billion in 2025 to USD 109.63 billion by 2030, with Riyadh capturing the largest share of this expansion.
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What are the current mortgage and financing conditions for Riyadh properties?
Mortgage financing conditions in Riyadh have become increasingly favorable, supporting continued property market growth.
Mortgage lending increased by 5.3% in the first half of 2024, with expectations for accelerated growth as interest rates decline. Industry experts anticipate interest rate reductions of 225 basis points by the end of 2025, making borrowing more attractive.
The Real Estate Development Fund (REDF) continues to dominate home financing, while Saudi Real Estate Refinance Company (SRC) has expanded its mortgage portfolio to SAR 28 billion by June 2024. SRC's mandate to purchase mortgages from banks creates additional lending capacity.
Over 60% of Riyadh's housing transactions in 2024 were financed through bank mortgages, indicating strong credit availability. The Sakani initiative provides additional support for qualifying Saudi citizens seeking homeownership.
First-time homebuyers benefit from expanded support, including the increased tax exemption threshold of SAR 1 million and various government-backed financing programs designed to achieve Vision 2030's homeownership targets.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Based on comprehensive analysis of current market data, government policies, and economic indicators, property prices in Riyadh are definitively rising and this trend is expected to continue through 2026.
Answer: Yes, a lot. Riyadh's property prices are experiencing significant upward momentum with 8.6% annual growth in 2024, driven by Vision 2030 initiatives, population expansion, infrastructure development, and strong investor confidence.
Sources
- Global Property Guide - Saudi Arabia Price History
- Arab News - Saudi Real Estate Prices Rise 4.3% in Q1
- Sands of Wealth - Riyadh Real Estate Forecasts
- S&P Global - Saudi Residential Real Estate Market Analysis
- Crown Continental - Saudi Arabia Real Estate Outlook 2025
- Trading Economics - Saudi Arabia Housing Index
- Mordor Intelligence - Saudi Arabia Real Estate Market Report
- CBRE - Saudi Arabia Real Estate Market Review Q1 2024