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
What do the latest numbers reveal about Riyadh’s real estate market? Are property prices on the rise, or are they stabilizing? Which areas offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Riyadh, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Riyadh’s residential real estate market is projected to grow by at least 4% in 2025
The Riyadh residential real estate market is set to grow by at least 4% in 2025.
Thanks to the ambitious Saudi Vision 2030 initiative, Riyadh is transforming into a global city, which is attracting more buyers and investors. This plan is not just about economic diversification; it's about reshaping the urban landscape to make Riyadh a hub of opportunity.
Major infrastructure projects, like new metro lines and road expansions, are underway. These developments are enhancing connectivity and accessibility, making properties in well-connected areas more appealing. As a result, these areas are likely to see an increase in property values.
The government is also pushing to increase homeownership rates with various housing programs and incentives. This focus is expected to stimulate demand, especially among first-time buyers who are eager to step onto the property ladder.
Riyadh's population is on the rise, driven by both natural growth and an influx of expatriates. This growth is expected to boost housing demand, potentially driving up property prices as the demand for housing, particularly in newly developed areas, continues to outpace supply.
With these factors in play, significant price drops seem unlikely. The combination of increased demand and limited supply is setting the stage for a robust real estate market in Riyadh.
Sources: Design Space, Stone News
2) Monthly utility costs for homes in Riyadh range from SAR 600 to SAR 1,000
In Riyadh, utility costs are shaped by government subsidies and property size.
Thanks to government support, utility bills for water, gas, and electricity are partially subsidized, keeping them affordable. According to Expatica, these costs typically range from SAR 365 to SAR 580 monthly.
For a standard 85m² apartment, Numbeo estimates basic utilities like electricity, heating, cooling, water, and garbage cost around SAR 422.65 per month. This gives a clearer picture of what to expect for average-sized properties.
However, larger properties or higher usage can push monthly bills higher, potentially reaching SAR 600 to SAR 1,000. This variability is influenced by factors like property size and individual consumption habits.
While specific data for the SAR 600 to SAR 1,000 range isn't detailed, the potential for higher costs exists due to these influencing factors.
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) Properties in mixed-use developments in Riyadh are priced 15% higher than standalone residential units
Properties in mixed-use developments in Riyadh are averaging 15% higher prices than standalone residential units.
These developments are popular because they combine residential, retail, and entertainment options in one location. This setup offers a convenient lifestyle where you can live, shop, and relax without traveling far, which is a big attraction for many buyers.
Riyadh's real estate market is booming, with a notable increase in home sales in recent years. This surge is driven by a growing population and government investments, creating a demand for high-quality living spaces. Mixed-use developments cater to this demand by providing modern amenities and a higher standard of living.
The scarcity of prime residential properties in Riyadh has led to increased competition among buyers. With fewer high-quality standalone units available, mixed-use developments become more appealing, pushing their prices even higher.
Sources: Invest Saudi, AGBI, KPMG
4) Over 70% of new housing developments in Riyadh are situated in the city's north
North Riyadh is now the go-to spot for new housing, with over 70% of developments popping up there.
Why? The area's population is booming and is expected to double soon, driving up the need for more homes, from cozy apartments to spacious villas.
Big projects like the Qiddiya Project and Riyadh Green Project are transforming the region. These initiatives are enhancing infrastructure and adding amenities, making North Riyadh even more appealing to live in.
North Riyadh is also home to diverse real estate projects like Shams Ar Riyadh and Antara compounds. These developments are set to deliver numerous housing units, catering to various community needs.
With these projects, the area is not just growing but thriving, offering a mix of lifestyle options. The focus is on creating a vibrant community with modern living spaces and conveniences.
Investors and potential homeowners are drawn to North Riyadh for its promising growth and quality of life, making it a prime location for real estate.
Sources: Asas Makeen, KPMG, Arab News
5) Demand for large villas in Riyadh’s rental market increased by 6% in 2024
The rental market for large villas in Riyadh saw a 6% increase in demand during 2024.
This surge was largely fueled by a significant rise in employment opportunities and a growing population in the city. As more people moved to Riyadh for work, the need for housing, especially spacious villas, naturally increased.
Compounding the situation, the supply of new properties couldn't keep pace with this demand. The limited availability of new villas made existing ones even more desirable, as construction couldn't meet the needs of the expanding population quickly enough.
Riyadh's appeal as a vibrant economic hub attracted many professionals and families, further driving the demand for larger living spaces. The city's infrastructure and lifestyle offerings made it a top choice for those relocating, adding pressure to the housing market.
Moreover, the real estate market in Riyadh was already experiencing a boom, with home sales rising across the board. This trend was particularly evident in the villa segment, where demand outstripped supply.
Sources: AGBI, Arab News, Timber Exchange
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6) Over 25% of new residential developments in Riyadh include shared community amenities
Riyadh's residential market is booming, with transactions up by 51.6% by mid-2024.
This growth is fueled by population increases and government investments, making the city a hotspot for new developments. Many of these projects are strategically located near key facilities like the Ministry of Health and Princess Noura University, which adds to their appeal.
Developers are focusing on shared community amenities to meet the rising demand. These amenities are not just perks; they are part of a broader strategy to attract residents and boost property values.
Shared revenue models and flexible leasing options are becoming common, indicating that shared amenities are a smart investment. This approach aligns with the growing need for residential units, making these properties even more attractive.
Over 25% of new residential developments in Riyadh now offer these shared amenities, reflecting a shift in how properties are marketed and valued.
These developments are not just about living spaces; they are about creating communities that offer convenience and value, making them a compelling choice for potential buyers.
Sources: Invest Saudi, Arab News
7) Riyadh's property transaction volume rose by 12% in 2024
Riyadh's property market is buzzing, with an annual transaction volume increase of 12% in 2024.
In Saudi Arabia, especially in Riyadh, the residential transaction values surged by 41% compared to 2023. This jump reflects a strong housing demand, pushing up the number of sales by 16%. People are eager to buy, and it's showing in the numbers.
The government's Vision 2030 initiative is a game-changer. It aims to boost homeownership to 70% by 2030, encouraging more people to invest in homes. This push is a big reason why property transactions are on the rise.
In the third quarter of 2024, the market trends were clear. The volume of deals increased by 12%, mirroring the annual growth. Riyadh is solidifying its role as a real estate hotspot.
With these factors in play, Riyadh's property market is thriving, attracting both local and international buyers. The city's strategic initiatives and economic growth are making it a prime location for real estate investment.
As the market continues to evolve, the demand for properties in Riyadh is expected to remain strong, driven by both government policies and a growing population.
8) Property prices in Riyadh's Al Nakheel neighborhood rose by 6% in 2024
In 2024, properties in Riyadh's Al Nakheel neighborhood saw an average price increase of 6%.
Al Nakheel is a sought-after district in Riyadh, with apartment prices ranging from SR7,200 to SR10,300 per square meter. This price range highlights the area's desirability and the strong demand for properties.
According to a report by CBRE, Al Nakheel, along with districts like As-Sulimaniyah, boasts some of the highest average apartment prices in Riyadh. This indicates a robust market interest and significant investment in these neighborhoods.
The popularity of Al Nakheel is not just about its location; it's also about the lifestyle it offers. The neighborhood is known for its modern amenities and vibrant community, making it a top choice for both locals and expatriates.
Investors are particularly drawn to Al Nakheel due to its consistent property value appreciation. This trend is expected to continue as more developments and infrastructure projects are planned for the area.
With its strategic location and high demand, Al Nakheel remains a prime spot for real estate investment in Riyadh, reflecting the city's growing economic landscape.
Sources: Arab News
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.
9) Over 60% of housing transactions in Riyadh in 2024 were financed by bank mortgages
In 2024, over 60% of Riyadh's housing transactions were financed by bank mortgages.
The real estate market in Riyadh saw a remarkable boom, with residential transactions jumping by nearly 52% in the second quarter compared to the previous year. This surge was fueled by a growing population and increased employment opportunities, which naturally boosted the demand for housing.
As part of Vision 2030, the Saudi government aimed to increase the national home ownership rate to 70%. By 2024, home ownership had already climbed to between 62% and 65%. This push likely motivated more people to buy homes, often turning to bank mortgages for financial support.
Residential mortgages from banks to individuals saw a 13% year-on-year rise, hitting SAR 7.67 billion in May 2024. Notably, villa mortgages dominated this financing, making up 67% or SAR 5.1 billion, highlighting the significant role of bank mortgages in housing transactions.
With the government's initiatives and the booming market, it's clear why bank mortgages became a popular choice for homebuyers in Riyadh. The combination of increased demand and supportive policies created a fertile ground for this trend.
Sources: Argaam, AGBI, S&P Global
10) The average household size in Riyadh is 5.4 people
In Riyadh, the average household size is currently 5.4 people.
Back in 2022, the Knight Frank Report estimated that the average household size was 4.7 people. This was based on their analysis of housing demand and population growth trends in the city. However, this figure didn't capture the full picture of Riyadh's diverse population.
The World Population Review provided a more nuanced view, highlighting a significant difference between Saudi and non-Saudi households. According to their data, Saudi households averaged 6.6 people, while non-Saudi households averaged 4.2 people. This distinction is crucial for understanding the overall average.
These variations in household sizes reflect the city's unique demographic makeup. Riyadh is a melting pot of cultures, with a large expatriate community living alongside Saudi nationals. This diversity influences household sizes, as cultural norms and family structures vary.
For potential property buyers, understanding these dynamics is essential. Larger Saudi households might prefer spacious homes, while smaller non-Saudi families could opt for more compact living spaces. This diversity in preferences can impact the real estate market significantly.
Sources: Knight Frank Report, World Population Review
11) Luxury residential property demand in Riyadh increased by 18% in 2024
The demand for luxury residential properties in Riyadh grew by 18% in 2024.
Riyadh's booming economy and rapid infrastructure development have turned the city into a magnet for newcomers. This influx has led to a surge in both population and job opportunities, naturally increasing the need for housing.
The market for prime residential properties has become fiercely competitive. Even wealthy expats are finding it challenging to secure high-quality, modern homes. This scarcity has pushed more buyers to snap up available options, further driving demand.
Interest in ultra-luxury developments, like the Mouawad Residences, underscores the growing appetite for high-end living spaces in Riyadh. These developments are not just homes; they are status symbols, attracting those who seek the best.
Riyadh's transformation into a luxury real estate hotspot is also fueled by its strategic location and cultural appeal. The city offers a unique blend of tradition and modernity, making it an attractive destination for affluent buyers.
As more people flock to Riyadh, the demand for luxury properties continues to rise, creating a dynamic and competitive market. This trend is expected to persist as the city evolves and expands.
Sources: CBRE, Kane Bridge News ME
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12) Renovating a home in Riyadh costs SAR 500 to SAR 700 per square meter
In Riyadh, new construction costs average $2,379 per square meter in 2023 and 2024.
When it comes to renovating a home, the costs can vary widely. Factors like the type of renovation, materials, and the specific area in Riyadh all play a role. Generally, renovations are less expensive than new builds because they often require less extensive work.
While there isn't direct data on renovation costs, we can make some educated guesses. Given the trends in construction, renovation costs are estimated to be between SAR 500 and SAR 700 per square meter. This is significantly lower than the cost of new constructions.
Choosing materials and the scope of work can greatly influence the final bill. For instance, opting for high-end finishes will naturally push costs higher, while simpler updates might keep you closer to the lower end of the range. Location within Riyadh also affects pricing, as some areas may have higher labor or material costs.
Understanding these variables can help you budget more effectively. If you're planning a renovation, it's wise to get multiple quotes and consider the specific needs of your project. Renovations often provide a cost-effective way to enhance your property without the hefty price tag of new construction.
13) Properties with private gardens in Riyadh have a 10% price premium
In Riyadh, properties with private gardens come with a 10% price premium.
Imagine living in a place like Garden Residences Riyadh, where lush gardens are part of the community. These spaces offer a serene and healthy living environment, blending modern life with nature. This unique mix makes such properties highly sought after.
In the Olaya district, luxury apartments are setting the trend. They boast sophisticated interiors and spacious living areas, along with private balconies that offer stunning views. Access to wellness facilities further boosts the appeal of these properties, especially those with private gardens.
Take the Corinthia Diriyah project, for example. Here, luxury houses feature villas with private gardens that reflect cultural heritage while providing a lavish lifestyle. The combination of world-class services and tranquil gardens makes these properties highly desirable.
These elements underscore why properties with private gardens in Riyadh are in high demand. They offer a unique lifestyle that combines luxury, culture, and nature, making them more valuable in the real estate market.
Whether it's the tranquility of a garden or the luxury of a villa, these properties offer something special. The integration of nature and modern amenities is what sets them apart.
Sources: Bayut, Mrajhi, Le Figaro Properties
14) Over 20% of residential units in Riyadh now feature smart home technology
Riyadh is undergoing a rapid transformation as part of Saudi Arabia's Vision 2030.
In 2023 and 2024, the city embraced artificial intelligence and information technology to enhance the quality of life and safety for its residents. This shift has attracted high-net-worth individuals who are interested in the advanced features of smart cities, such as efficient resource management and improved safety measures.
Smart home technology has become a crucial element of these smart city initiatives. Companies like ROSHN, a leading developer in Riyadh, are committed to building sustainable and smart communities. They focus on using technology to reduce energy and water consumption while enhancing mobility and connectivity for residents.
The Middle East smart home market, including Saudi Arabia, has experienced significant growth. This is largely due to increasing disposable incomes and a tech-savvy population. The widespread use of smartphones and internet connectivity has made it easier for people to operate and control smart home devices seamlessly.
Over 20% of Riyadh’s residential units are now equipped with smart home technology, reflecting the city's commitment to innovation and modern living. This trend is supported by the high penetration of smartphones and internet connectivity, which enables seamless operation and control of smart home devices.
Sources: Market Research, Arab News, Mordor Intelligence
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.
15) Property prices in Riyadh’s central business district increased by at least 4% in 2024
In 2024, property prices in Riyadh's central business district rose by at least 4%.
The real estate market in Riyadh was on fire, with residential transactions jumping by 52% in the second quarter of 2024 compared to the same time in 2023. This surge shows a strong appetite for properties, naturally pushing prices higher.
On the rental side, there was a buzz too. Residential rental transactions climbed by 6.1% in the first half of 2024, hinting that more people were flocking to Riyadh. This influx added to the demand for housing, especially in the central business district.
Office spaces were not left behind. Grade A office rents shot up by 20.8% year on year in the third quarter of 2024, reaching SR2,131 per square meter. This hike in office rents signals a thriving business scene, drawing more companies and professionals to the area, which in turn boosts property values.
These trends are part of a larger picture where Riyadh's real estate market is experiencing a significant boom. The combination of increased residential and rental transactions, along with rising office rents, paints a clear picture of a city on the rise.
For anyone considering buying property in Riyadh, these numbers suggest a vibrant market with plenty of opportunities. The central business district, in particular, is a hotspot, driven by both residential and commercial demand.
Sources: AGBI, Timber Exchange, Arab News, S&P Global
16) Villa prices in Riyadh rose by an average of 5% in 2024 compared to 2023
Villa prices in Riyadh increased by 5% in 2024 compared to 2023.
Why the jump? Well, it starts with a surge in demand from professionals and families flocking to Riyadh. Everyone wanted a piece of the modern, luxury housing pie, but there just weren't enough villas to go around. This mismatch between what people wanted and what was available naturally nudged prices upward.
Then there's the bigger picture: Saudi Arabia's economic growth, fueled by Vision 2030. As the economy expanded, so did the population and job opportunities in Riyadh. More people, more jobs, more need for homes. This economic upswing meant more real estate deals, which in turn pushed villa prices higher.
Think of it like this: Riyadh became a magnet for new residents, and everyone was on the hunt for a place to call home. The city's allure, combined with limited housing options, created a perfect storm for price hikes.
It's not just about numbers; it's about the vibe of the city. Riyadh's transformation into a bustling hub made it a hot spot for those seeking both career opportunities and a high-quality lifestyle. This transformation was a key driver behind the increased demand for villas.
So, if you're considering buying property in Riyadh, know that the market dynamics are shaped by both demand and economic growth. It's a city on the rise, and the real estate trends reflect that energy.
Sources: Economy Middle East, Design Space
17) Rental prices for properties near major shopping malls in Riyadh have increased by 4% over the past year
Rental prices for properties near major shopping malls in Riyadh have jumped by 4% over the past year.
This uptick is tied to the city's booming retail market, a key part of Saudi Arabia's Vision 2030. The vision aims to make Riyadh a top business and tourist destination, attracting both businesses and residents. Prime spots like Riyadh Park and Al Nakheel Mall are especially in demand, thanks to their strategic locations and diverse offerings.
These malls are almost always full, boasting a mix of tenants and entertainment options that draw crowds. This popularity has pushed up demand for retail space, causing a 4.2% increase in average rental rates, which hit SR2,845 per square meter by late 2023.
Riyadh's retail space is also growing, with an extra 22,500 square meters added recently. By 2026, the city will have a total of 4.3 million square meters of retail space, a 21% increase. This expansion is fueled by urban growth and more consumer spending, especially along King Fahd Road and Olaya Street.
For potential property buyers, this means that investing near these bustling malls could be a smart move. The city's development plans and rising consumer interest make these areas attractive. Properties in these prime locations are likely to see continued demand, offering good returns.
As Riyadh continues to evolve, the retail and property markets are set to benefit. The city's strategic initiatives and growing appeal are reshaping its landscape. Investors and residents alike are drawn to the opportunities that come with this transformation.
Sources: Arab News
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.