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What is happening in Riyadh’s real estate market? Are prices on the rise or decline? Is Riyadh still attracting foreign investors? How are Saudi Arabia’s government policies shaping real estate and taxes in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across Riyadh and beyond. Maybe you’re curious about the same things.
We know this because we stay closely connected with local experts and people like you, exploring the Riyadh real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
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1) Foreign buyers will increasingly target Al Aqiq as it emerges as a tech hub
Foreign buyers are eyeing the Al Aqiq district as it transforms into a tech hub.
Saudi Arabia is pouring resources into tech, with a $100 billion plan for AI by 2030. This massive investment is setting up data centers and nurturing startups, creating a fertile ground for tech growth.
Big names like Microsoft are already in the game, having built three Azure availability zones in Saudi Arabia. This move not only boosts reliability and performance but also sets the stage for other tech giants to follow suit.
The government is sweetening the deal with initiatives like the Regional Headquarters Program, offering a 30-year tax exemption to lure global companies. These incentives make Al Aqiq a hotspot for foreign tech firms eager to invest.
Property prices in Al Aqiq are climbing, fueled by a surge in foreign direct investment in Riyadh. This trend indicates that the area is becoming a magnet for tech companies and expatriates alike.
There's a noticeable uptick in investment licenses, especially in information and communication technology, highlighting the growing demand for commercial real estate in Al Aqiq.
Sources: Nucamp, Microsoft News, Arab News
2) Foreign investors will increasingly target Al Sahafa for its modern infrastructure
Al Sahafa is catching the eye of foreign investors thanks to its modern infrastructure and strategic location.
Riyadh's infrastructure is getting a major boost with projects like the Circular Roads Development Program, which includes the Second Southern Ring Road and the Taif Road extension. These developments are set to enhance connectivity and ease traffic flow, making Al Sahafa more accessible and attractive to investors.
The Saudi government is rolling out the red carpet for foreign investors with enticing policies. They're offering tax breaks, 100% ownership rights, and customs duty exemptions, making it a breeze for international businesses to set up shop in Saudi Arabia. Al Sahafa is poised to reap the benefits of this increased interest.
Al Sahafa's real estate market is buzzing, thanks to its prime location and top-notch amenities. Properties like the Al Sahafa Villas offer luxurious living spaces with features such as swimming pools and smart systems, which are a big draw for foreign investors seeking quality living.
With its modern infrastructure and strategic location, Al Sahafa is becoming a magnet for those looking to invest in Saudi Arabia. The area's appeal is further boosted by the government's investor-friendly policies, making it a hot spot for international interest.
As the infrastructure projects progress, Al Sahafa's accessibility and appeal will only grow, solidifying its status as a prime investment destination.
Sources: Rise Expo, Centuro Global, Mada Properties
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.
3) Rental prices in Al Murabba will slightly decline due to increased competition
The Al Murabba district is expected to see a slight decline in rental prices due to increased competition.
One major factor is the New Murabba project, a massive development covering 19 square kilometers. This project will add over 25 million square meters of floor area, including a significant number of residential units, hotels, and retail spaces. With this influx of new residential developments, the supply of rental properties will increase, leading to lower rental prices as landlords compete to attract tenants.
In this competitive market, some landlords are already offering incentives to draw in tenants. You might find discounts or free amenities as part of the deal, which can make properties more appealing. This kind of competition can further drive down rental prices as landlords try to fill their units.
The New Murabba project will include over 100,000 residential units, significantly boosting the number of rental listings in Al Murabba. More options for tenants mean landlords have to work harder to get their attention, often by lowering prices.
Government initiatives like Vision 2030 are also promoting housing development in Riyadh, which could lead to an oversupply of residential units, including in Al Murabba. This oversupply would increase competition among landlords, driving down rental prices.
Real estate market analyses predict an oversupply of rental properties in Al Murabba due to the New Murabba project, supporting the argument for a decline in rental prices. Landlords will need to be creative to stand out in this crowded market.
Sources: Arab News, Vision 2030
4) Young families moving in will shift the demographics of Al Shifa neighborhood
Al Shifa is quickly becoming a favorite spot for young families looking to settle down.
One big reason is the rising demand for family-sized homes in the area. The real estate market in Riyadh, especially in Al Shifa, is buzzing with interest from families. This surge is due to a high demand and low supply, which has pushed rental prices up, making it a prime location for families to buy homes.
Schools are another major draw. The Ministry of Education reports a steady increase in student numbers in Riyadh, particularly in Al Shifa. This uptick shows that more young families are moving in, eager for quality education for their kids. Good schools are often a top priority for families deciding where to live.
The local government is also stepping up by developing family-friendly amenities in Al Shifa. They've improved transportation links and added parks and recreational facilities for children. These efforts are all about making life better for families and attracting them to the neighborhood.
Al Shifa's appeal is further boosted by its community vibe. The area offers a supportive environment with amenities that cater to family needs, making it an attractive choice for those seeking a balanced lifestyle. The availability of such amenities is a big plus for families looking for a community that fits their lifestyle.
With these factors in play, it's no wonder that Al Shifa is seeing a demographic shift as more young families move in. The neighborhood is evolving into a vibrant community that supports family life.
Sources: Riyadh House, Ministry of Education, Knight Frank
5) Rental yields in Al Khuzama will decrease as more properties enter the market
In 2023 and 2024, Al Khuzama saw a surge in construction permits and development projects.
This boom was driven by the Ministry of Municipal, Rural Affairs, and Housing's updated procedures, which aimed to streamline construction and ensure environmental compliance. As a result, construction activities skyrocketed, leading to an oversupply of properties in the area.
Real estate agencies like CBRE have flagged this oversupply as a potential issue. They noted that while office and residential rents have grown, rental yields might drop due to the excess supply. This pattern mirrors what has happened in other parts of Riyadh and Gulf cities, where more properties often mean lower rental returns.
Moreover, tenants are increasingly favoring newer developments, which could further impact older neighborhoods like Al Khuzama. In fast-growing cities, tenants are attracted to modern amenities and features in new properties. As more options become available, landlords might have to lower rents to fill vacancies, which would decrease rental yields even more.
In Al Khuzama, this shift in tenant preferences is significant. With the influx of new properties, landlords may need to adjust rental prices to stay competitive, potentially leading to a drop in rental yields.
Sources: Zawya, Black Cat GC, CBRE
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6) Property prices in Al Yasmin will rise moderately with better road connectivity
In Saudi Arabia, government investment in infrastructure has been on the rise.
Back in 2023, the Saudi Ministry of Municipal and Rural Affairs rolled out a massive $43 billion plan aimed at boosting housing and infrastructure. This initiative opened up numerous opportunities for construction companies and related services, with a strong focus on improving road connectivity.
One of the most notable projects was the Riyadh Metro, a $22.5 billion transport system that became fully operational. This metro system connected key areas of the city, significantly enhancing mobility. Such projects clearly showed the government's commitment to improving road connectivity, which is crucial for areas like Al Yasmin.
Historically, property prices in Riyadh have tended to rise following infrastructure improvements. Neighborhoods like SEDRA and ALAROUS saw significant development and price hikes due to better connectivity. This trend is expected to continue in Al Yasmin, with real estate market reports forecasting growth due to its improved road links.
For potential buyers, this means that investing in Al Yasmin could be a smart move. The area is poised for a moderate increase in property prices thanks to the enhanced road connectivity.
With the government's ongoing commitment to infrastructure, Al Yasmin is likely to become an even more attractive place to live. The improved road links are expected to boost the area's appeal to both residents and investors.
Sources: Saudi Build, Arab News
7) Property prices in Al Malqa will decline as new developments saturate the market
In 2023 and 2024, Al Malqa district in Riyadh saw a boom in new residential projects.
This surge led to an oversupply of housing units, which developers and real estate analysts quickly noticed. As these new properties hit the market, existing homes started seeing higher vacancy rates. This rise in vacancies signaled a drop in demand, naturally pushing property prices down.
Reports of unsold inventory in Al Malqa further underscored the market saturation issue. Developers and sellers, eager to move their stock, often had to lower prices to attract buyers, which contributed to the overall decline in property values.
For potential buyers, this means that property prices in Al Malqa are likely to continue falling as the market adjusts to the oversupply. The abundance of options gives buyers more negotiating power, making it a favorable time to consider purchasing in this area.
Insider knowledge suggests that new developments are not slowing down, which could further saturate the market. This ongoing construction boom is expected to keep prices competitive, offering more opportunities for those looking to invest in property.
With the current trend, Al Malqa is becoming a buyer's market, where savvy investors can find good deals. However, it's essential to stay informed about the latest developments and market conditions to make the most of this opportunity.
Sources: Arab News, MOMAH, Saudi Arabia Price Forecasts
8) Zoning law updates will bring changes to the Al Aziziyah neighborhood
The Al Aziziyah neighborhood in Riyadh is set for big changes as zoning laws get updated.
Thanks to the Green Riyadh Project, launched in 2019, Riyadh aims to become a "green oasis" with more trees and plants. This means zoning rules are being tweaked to allow more greenery in both public and private areas, changing how land is used in the city.
The Royal Commission for Riyadh City (RCRC) is also rolling out various urban projects, including the Green Riyadh Project, focusing on Al Aziziyah. These plans involve improving infrastructure and public spaces, which need new zoning rules. For instance, the Roads and Infrastructure Development in Aziziya East project is adding 17.5 km of paved roads and 7 signal-controlled intersections, showing the need for updated zoning.
Real estate prices in Riyadh are expected to rise by 3% to 7% in 2025 due to more demand from economic growth and urban projects. Zoning changes are likely to make areas more attractive for living and investment. Al Aziziyah, with its strategic location and ongoing projects, is expected to see significant price hikes, prompting zoning updates to meet the demand for housing and commercial spaces.
Sources: Place Dynamix, Arab Urban Development Institute, Ashghal
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.
9) New regulations favoring sustainable building will bring changes to the Al Batha district
The Al Batha district in Riyadh is set for big changes with new sustainable building regulations.
Saudi Arabia is pushing for sustainability by applying assessment standards to over 70 major projects by the end of 2023. This move targets both residential and commercial developments, aiming to make them more eco-friendly. The focus is on creating spaces that are not only functional but also environmentally responsible.
The Saudi Building Code now includes a Green Building Code, which is a game-changer for construction. It covers everything from site development to energy efficiency, ensuring that new buildings meet high sustainability standards. This code is a clear sign of Saudi Arabia's dedication to green construction, and Al Batha is expected to be a key area where these practices will be implemented.
Another exciting development is the Green Riyadh Project, spearheaded by the Royal Commission for Riyadh City Development. This initiative plans to increase green spaces and reduce city temperatures, making life better for everyone. By planting millions of trees and building the necessary infrastructure, Riyadh is setting a new standard for urban development.
These efforts are not just about aesthetics; they aim to improve the quality of life for residents. The increase in green spaces will provide more recreational areas and help combat the urban heat island effect, making the city more livable. Al Batha will likely see these benefits firsthand as the district evolves.
With these changes, Al Batha is on the brink of becoming a model for sustainable urban living in Saudi Arabia. The district's transformation will reflect the broader national commitment to environmental responsibility and innovation in urban planning.
Sources: Ministry of Municipal Rural Affairs and Housing, Setup in Saudi, Haif Company
10) Smart home technology will be a major selling point in Al Mursalat district
Smart home technology is booming in Riyadh, and it's changing the way people think about buying property.
In 2023 and 2024, there was a 50% year-on-year increase in smart home customers in Saudi Arabia and the UAE. This isn't just about having a few gadgets; it's about transforming homes into efficient, secure, and convenient spaces. Imagine controlling your lights, security, and even your coffee maker with just your voice or a tap on your phone.
By 2029, the Middle East smart home market is expected to hit USD 20.74 billion, growing at a rapid pace. This growth is driven by a strong interest in smart home solutions, especially in urban areas like Al Mursalat. Here, luxury real estate is increasingly incorporating these features to attract tech-savvy buyers who value modern conveniences.
Consumer preferences are shifting towards homes with advanced automation systems. These systems not only offer convenience but also enhance security and energy efficiency. In Riyadh, this trend is particularly evident in high-end properties, where smart home features are becoming a key selling point.
The Saudi government's Vision 2030 initiative is also playing a significant role. By promoting innovation and investing in smart city projects, the government is driving demand for smart homes. This is especially true in urban districts like Al Mursalat, where the integration of smart technology is seen as a step towards a more modern and efficient lifestyle.
Sources: MeaTechWatch, Market Research Hubspot, Mordor Intelligence, MarkNtel Advisors
11) Al Rawdah will draw more families with its closeness to new educational institutions
The Al Rawdah area in Riyadh is becoming a hotspot for families, thanks to its proximity to new educational institutions.
In 2023 and 2024, several exciting developments were announced, making Al Rawdah even more appealing. Reigate Grammar School Riyadh plans to open new campuses, including one in the King Abdullah Financial District by 2026. This move underscores the region's growing focus on educational infrastructure. Additionally, the CEO of NCLE has plans for three new schools in Riyadh, potentially near Al Rawdah, signaling a boost in educational opportunities in the area.
High-quality schools have a significant impact on real estate. In Saudi Arabia, neighborhoods with top-rated schools see property values 77% higher than those with average schools. This trend suggests that Al Rawdah, with its new educational institutions, will likely experience increased property demand and prices.
Families often prioritize living near educational facilities to ensure their children have access to quality education. This preference is well-documented in real estate market analyses, showing a clear link between school quality and property values.
As more educational institutions open, Al Rawdah is poised to attract more families, making it a prime location for those seeking a family-friendly environment with excellent educational options.
Sources: Which School Advisor, Arab MLS, Edu.com.sa
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12) Luxury villas in Al Hada will attract more interest from high-net-worth individuals seeking exclusivity
Luxury villas in the Al Hada district are catching the eye of wealthy buyers looking for something special.
Back in 2023, the buzz around luxury real estate in Riyadh was undeniable. Villa prices jumped by 5%, as noted in the Deloitte Middle East Real Estate Report. This upward trend didn't stop there; it rolled right into 2024, showing that high-end properties are becoming even more desirable.
Saudi Arabia is seeing a boom in wealthy individuals. The BRICS Wealth Report pointed out that the Kingdom is on track for a 105% increase in average wealth per person over the next decade. By 2024, the country was home to 58,300 millionaires, including 195 centi-millionaires and 22 billionaires. That's a 32% rise since 2013, and these affluent folks are on the hunt for exclusive spots like Al Hada.
Al Hada isn't just about luxury homes; it's about lifestyle. The area boasts high-end amenities and infrastructure, like the Vivienda Al Hada luxury hotel villa complex. This place offers 24 villas with top-notch facilities, including a restaurant and spa, catering to the luxurious lifestyle that wealthy individuals crave.
Location is everything, and Al Hada has it. It's close to the Diplomatic Quarters and top international schools, such as the British International School Riyadh. This makes it a prime spot for families who want quality education and a prestigious living environment.
With all these factors in play, it's no wonder that Al Hada is becoming a hotspot for those who can afford the best. The combination of rising wealth, exclusive amenities, and a prime location is a recipe for increased interest in this luxurious district.
Sources: Arab News, Deloitte, Vivienda
13) New public transport links will boost accessibility in the Al Maseef area
The Al Maseef area is about to see a big boost thanks to new public transportation links in Riyadh.
With the Riyadh Metro network launching in late 2024, Al Maseef will soon enjoy better access to the rest of the city. This network includes six fully automated metro lines and 85 stations, and the first phase is expected to be operational by early 2025. This means residents will have a much easier time getting around, making the area more attractive to potential buyers.
In Riyadh, neighborhoods with improved transit access have historically seen rising property values. This trend suggests that Al Maseef could become a hot spot for homebuyers, potentially driving up property prices. Real estate market reports often highlight the demand for properties in areas with better transit options, hinting at a positive impact on the local real estate scene.
The Riyadh Metro will also integrate with the city’s bus network, which is expected to boost commercial activity in connected areas. This seamless connectivity will not only make commuting easier but also support local businesses, turning Al Maseef into a more vibrant and economically active neighborhood.
For those considering a move, the new transit links mean more convenience and better access to the city’s amenities. This could make Al Maseef an even more appealing place to live, with the added benefit of potentially higher property values.
As the metro network becomes a reality, Al Maseef is poised to become a key player in Riyadh’s urban landscape, offering residents enhanced mobility and economic opportunities.
Sources: Saudi Mobility Consulting, Economy Middle East, Statista
14) Interest in older apartments in Al Manfuhah will drop as new developments arise
Riyadh is buzzing with new residential developments, especially in Al Manfuhah.
By 2025, the Saudi Ministry of Municipal and Rural Affairs aims to deliver 300,000 new residential units, with half already underway. This boom is steering interest away from older apartments. Al Manfuhah is not just about new homes; it's about a lifestyle upgrade. Projects like Al-Fursan and New Murabba are bringing in 104,000 residential units, plus hotels and shops, all part of a $43 billion urban renewal plan.
These efforts are making newer properties more appealing. The government is keen on transforming the area, and it's working. People are drawn to the modern infrastructure and amenities. The younger crowd, in particular, is showing a strong preference for modern architectural designs. They want contemporary living spaces, and that's exactly what these new developments offer.
Older apartment buildings are feeling the pinch. They're seeing declining rental yields and more vacancies as people flock to the new, shiny options. It's a clear shift in consumer preferences. The allure of modern amenities and stylish designs is hard to resist, especially when the government is backing these projects with such vigor.
Al Manfuhah is becoming a hotspot for those seeking a fresh start in a vibrant community. The area is evolving rapidly, and the focus is on creating a modern urban environment. This transformation is not just about buildings; it's about enhancing the quality of life for residents.
As new developments continue to rise, the interest in older apartment buildings is expected to decline further. The trend is clear: people want new, and Al Manfuhah is delivering.
Sources: Argaam, Saudi Build, Big 5 Construct Saudi
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.
15) Demand in Al Olaya will surge due to its closeness to new business developments
Al Olaya is quickly becoming the go-to spot for new business developments in Riyadh.
With the completion of the Al Olaya Trade Centre by AGE Construction in 2023, the district now boasts modern architecture and high standards, making it a prime location for companies. This new development has breathed life into the business community, attracting businesses eager to set up shop in the area.
Akaria, a major player in Saudi real estate, is also making waves in Al Olaya. They're working on Al Akaria Park, set to be finished by 2024, which is expected to generate substantial revenue from land sales. This move highlights a strong trend in commercial real estate investment, further enhancing the district's appeal.
Property prices in Al Olaya are on the rise, with commercial spaces now going for 13,164 SR per square meter. This increase reflects the growing demand and value of the area, making it a hot spot for investors.
Real estate agencies like ARAB MLS are buzzing about Al Olaya, calling it a vibrant and luxurious area. The district's strategic location and amenities tailored for business professionals make it a magnet for inquiries and transactions.
Al Olaya's economic growth and business opportunities are making headlines, boosting its reputation as a desirable place for both businesses and residents. The district's proximity to new business developments is a key factor driving this surge in demand.
Sources: AGE Construction, GIB Capital, ARAB MLS
16) Al Qadisiyah will attract more interest as environmental initiatives enhance air quality
The Al Qadisiyah neighborhood in Riyadh is undergoing a remarkable environmental transformation.
Thanks to the Green Riyadh program, which kicked off in 2023, Al Qadisiyah is set to become a greener oasis. The plan is to plant 7.5 million trees and boost the green cover to 9% of Riyadh's total area. Imagine strolling through new city parks with walking trails, running tracks, and cycling paths, all designed to enhance your lifestyle.
One of the standout perks of this initiative is the improvement in air quality. The Saudi Press Agency highlights that the project could lower temperatures by up to 2°C, while also cutting down on pollution and dust. With green space per person jumping from 1.7 sq m to 28 sq m, the air you breathe will be noticeably fresher.
These environmental upgrades aren't just about aesthetics; they come with economic benefits too. Areas with better air quality often see a rise in property values, attracting eco-conscious buyers and investors. This trend has been seen in other transformed neighborhoods, hinting that Al Qadisiyah might soon be in high demand.
For those considering a move, Al Qadisiyah offers a unique blend of urban living and nature. The neighborhood's transformation is not just about planting trees; it's about creating a healthier, more vibrant community. As the green spaces expand, so does the potential for a thriving real estate market.
With these changes, Al Qadisiyah is poised to become a sought-after destination. The combination of improved air quality and enhanced living spaces makes it an attractive option for future residents. The neighborhood's evolution is a testament to the power of environmental initiatives in shaping urban landscapes.
Sources: Gulf Construction Online, Arab News, Arab Urban
17) Diriyah will gain popularity with ongoing cultural and historical restoration projects
Diriyah is gaining attention due to significant government investment in its development.
Since December 2022, over two million visitors have explored Diriyah's historic sites like At-Turaif and Bujairi Terrace. The aim is to attract 50 million visitors annually by 2030, making it a key player in Saudi Arabia's Vision 2030 plan to diversify the economy and boost cultural tourism.
Diriyah's cultural significance has been highlighted by media coverage, especially during events like the Arabian Travel Market 2024. This event showcased Diriyah's unique blend of history and modern development, drawing attention to its visionary master plan and putting it on the map for potential visitors and investors.
The successful completion of several restoration projects has also contributed to Diriyah's growing popularity. The restoration of Al-Turaif, the development of Bujairi Terrace, and work on Wadi Hanifah have transformed Diriyah into a lively destination, breathing new life into the area.
These projects have made Diriyah a must-visit destination, with its rich history and vibrant atmosphere attracting more tourists. The area is becoming increasingly popular as cultural and historical restoration projects progress, making it a focal point for cultural tourism.
As Diriyah continues to develop, it is set to become a global cultural hub, drawing in visitors from around the world. The combination of historical significance and modern development is making Diriyah an attractive destination for those interested in cultural tourism.
Sources: Travel and Tour World, Diriyah Company, Arab Urban Development Institute
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.