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Saudi Arabia's property market has reached an historic milestone with transactions hitting SAR 2.5 trillion in 2024.
With Vision 2030 transforming the real estate landscape and new regulations opening doors for international investors, many are asking whether June 2025 represents the perfect moment to enter this rapidly evolving market.If you want to go deeper, you can check our pack of documents related to the real estate market in Saudi Arabia, based on reliable facts and data, not opinions or rumors.
| Factor | Status | Does it make it a good time to buy? |
|---|---|---|
| Price Trend | Rising steadily | Yes - Strong appreciation potential |
| Mortgage Rates | 5-7% range | Yes - Competitive rates |
| Foreign Ownership | Liberalized | Yes - New opportunities |
| Rental Yields | 5-8% average | Yes - Attractive returns |
| Infrastructure | Rapidly expanding | Yes - Value uplift expected |
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.
Are property prices in Saudi Arabia currently rising or falling in June 2025?
Property prices across Saudi Arabia are experiencing robust upward momentum in June 2025.
The Kingdom's real estate index for the residential sector rose by 3.1% during the year to Q4 2024, with Riyadh recording a 10% year-on-year increase in sale prices and Jeddah demonstrating 5% growth. Major urban centers are leading this growth, driven by strong demand from both local buyers pursuing the government's 70% homeownership target and international investors attracted by new ownership regulations.
Apartments saw prices increase by 2.9% year-on-year in Q4 2024, while villas recorded an impressive 6.5% growth. This widespread appreciation reflects the market's strength across different property types.
The Housing Index in Saudi Arabia increased to 104.90 points in the first quarter of 2025 from 104.20 points in the fourth quarter of 2024, confirming the continued upward trajectory.
This price growth is supported by record-breaking transaction volumes, with real estate transactions hitting a record-high SAR 2.5 trillion in 2024, indicating sustained market confidence and demand.
How do current mortgage rates in Saudi Arabia compare to previous years?
Mortgage rates in Saudi Arabia have stabilized at competitive levels following recent adjustments by the Saudi Arabian Monetary Authority (SAMA).
SAMA cut its official repo rate by 25 basis points to 5.0% in December 2024, following previous cuts in November and September. This monetary easing has helped maintain attractive mortgage rates for both nationals and expatriates.
Current mortgage rates for Saudi nationals range from 5.5% to 7%, representing a significant improvement from the higher rates seen in recent years. Expatriates typically face rates that are 0.5-1% higher than those offered to nationals, but importantly, they now have access to financing that was previously restricted or unavailable.
The total value of new residential mortgage loans increased by 10.7% year-on-year to SAR 79.12 billion in the first eleven months of 2024, demonstrating strong lending activity. A total of 13,142 new residential mortgages were given by banks in November alone, with the value up by 51% year-on-year.
These competitive rates, combined with loan-to-value ratios of up to 70% for expatriate first-home buyers, make property purchases more accessible than ever before in the Kingdom's history.
What are the current rental yields for residential properties in major Saudi cities?
Rental yields in Saudi Arabia remain highly attractive for investors, offering some of the best returns in the GCC region.
The average gross rental yield in Saudi Arabia stands at 6.75% in Q1 2025, with significant variations across cities and property types. In Riyadh, the average gross rental yield remains high at 8.89%, and around 7.89% in Jeddah.
| City/Area | Current Rental Yield Range | Property Type Focus |
|---|---|---|
| Riyadh (Premium Areas) | 7-8.9% | Luxury apartments & villas |
| Jeddah (Waterfront) | 6-7.9% | Mixed residential |
| Dammam (Suburbs) | 6.0-7.0% | Family villas |
| General Market Average | 5.0-8.3% | All types |
Residential rental rates rose strongly by 10% year-on-year in Q3 2024 in Riyadh, while Jeddah saw an 8% increase. This rental growth, combined with capital appreciation, makes Saudi real estate particularly attractive for investors seeking both income and growth.
It's something we develop in our Saudi Arabia property pack.
Can expatriates now buy property in Saudi Arabia as of June 2025?
Yes, expatriates can now purchase property in most areas of Saudi Arabia following groundbreaking regulatory reforms.
In January 2025, Saudi Arabia announced that foreign investors could participate in companies owning real estate in Mecca and Medina, marking a historic shift in policy. Premium Residency holders and those with investor visas now have full access to the property market, including mortgage financing from major banks.
The Premium Residency program offers renewable 5-year permits with comprehensive property ownership rights. Holders can sponsor family members, work or establish businesses freely, and enjoy a streamlined application process that takes just 2-4 weeks.
Foreign buyers must hold legal residency status to purchase property, but the expanded visa categories have made this more accessible than ever. The program has particularly attracted Chinese and European buyers, contributing to increased transaction volumes in luxury segments.
While military zones and border areas remain restricted, the opening of previously off-limits areas represents a fundamental transformation in Saudi Arabia's approach to foreign property ownership, aligning with Vision 2030's goals of economic diversification.
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What is the total cost of buying property in Saudi Arabia in 2025?
Buyers should budget for total transaction costs of 7.5% to 10% of the property value when purchasing in Saudi Arabia.
The main cost component is the Real Estate Transaction Tax (RETT), which was updated through Royal Decree M/84 in September 2024 and became effective from April 9, 2025. This tax is set at 5% of the property value for all residential sales.
Additional costs include registration fees of 0.5-1% of transaction value, legal fees typically ranging from 1-2% for complex transactions, and bank fees of 1-2% for mortgage processing. Property valuation costs range from SAR 3,000-10,000 depending on property size.
The new RETT law includes exemptions for mergers, acquisitions, public subscriptions, and investment fund units, with penalties for late payments reduced to 2% per month, capped at 50% of unpaid tax.
These transaction costs are competitive compared to many international markets, particularly when considering the absence of annual property taxes and the favorable tax environment for investors.
How does the Saudi property market in 2025 compare to other GCC countries?
Saudi Arabia's property market now rivals the UAE as the region's most attractive investment destination.
While the UAE's average gross rental yield stands at 4.87% in Q2 2025, Saudi Arabia offers significantly higher yields averaging 6.75%. This yield advantage, combined with stronger capital appreciation potential, makes Saudi Arabia increasingly competitive.
| Comparison Factor | Saudi Arabia | UAE (Dubai) |
|---|---|---|
| Average Rental Yields | 6.75% | 4.87% |
| Capital Growth (YoY) | 10% (Riyadh) | 5-7% |
| Transaction Tax | 5% RETT | 4% transfer fee |
| Foreign Ownership | Expanding rapidly | Fully established |
| Market Maturity | High growth phase | Mature market |
Saudi Arabia's rapidly liberalizing regulations are closing the gap with Dubai's mature, transparent market. The Kingdom offers higher growth potential and more diverse investment opportunities across multiple cities and mega-projects like NEOM.
For risk-tolerant investors seeking higher returns, Saudi Arabia presents compelling opportunities that Dubai's more saturated market cannot match.
What impact is infrastructure development having on property values in June 2025?
Major infrastructure projects are creating significant value uplift in connected neighborhoods across Saudi Arabia.
The Riyadh Metro expansion, completed in Q1 2025, has been a game-changer for property values. Properties within 500 meters of metro stations have seen price premiums of 15-20% compared to similar properties in non-connected areas. Districts along the King Abdullah Road and Olaya Street corridors have been particular beneficiaries.
NEOM is transitioning from concept to reality with Phase 1B now underway. Early investors who bought into Phase 1A are already seeing paper gains of 20-30%. Influential projects such as NEOM, The Red Sea Project, and Qiddiya are drawing international investors, reshaping the commercial real estate market.
The government's investment of SAR 4.9 trillion in real estate to develop over 1 million new homes is creating ripple effects across the market. This infrastructure-driven appreciation pattern is expected to continue as more projects come online.
Smart city technology integration and sustainable development practices are adding further value, with LEED-certified buildings commanding premium prices and rental rates.
What are the latest visa reforms affecting property buyers in Saudi Arabia?
The expanded Premium Residency program has revolutionized property access for foreigners in 2025.
This golden visa-style program now offers renewable 5-year permits with full property ownership rights, access to mortgage financing from Saudi banks, ability to sponsor family members, and freedom to work or establish businesses. The streamlined application process takes just 2-4 weeks, making it highly efficient.
New digital nomad visas introduced in early 2025 have added another pathway for property investment, attracting remote workers and entrepreneurs. These reforms have particularly attracted buyers from China, Europe, and other Asian markets.
Visa policy reforms and regulatory changes could boost direct foreign investment to the real estate sector, with the government actively working to attract international capital through these progressive policies.
The impact has been immediate and significant, with foreign buyer activity contributing to increased transaction volumes in luxury segments and prime locations across major cities. It's something we develop in our Saudi Arabia property pack.
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.
Are there currently more buyers or sellers in the Saudi property market?
The Saudi residential market is experiencing strong buyer demand across most segments.
Real estate transactions hit a record-high SAR 2.5 trillion in 2024, with over 622,000 deals, indicating a market with significant buyer activity. The affordable segment (properties under SAR 1.5 million) sees particularly strong demand due to government incentives for first-time buyers.
In the luxury segment, limited supply is giving sellers pricing power, especially in prime locations of Riyadh and Jeddah. The revised White Land Tax is forcing landowners to develop or sell undeveloped parcels, gradually increasing supply but not yet enough to shift overall market dynamics.
There have been 107,008 new mortgage approvals so far this year, above the 102,583 approved in 2023, demonstrating sustained buyer appetite despite rising prices. This buyer momentum is supported by favorable financing conditions and government homeownership initiatives.
Overall, the market favors sellers in premium segments while offering opportunities for buyers in the affordable housing sector.
What are the price forecasts for Saudi properties through 2026 and beyond?
Property price forecasts for Saudi Arabia remain highly optimistic through the end of the decade.
The Saudi Arabia Real Estate Market size is estimated at USD 74.99 billion in 2025, and is expected to reach USD 109.63 billion by 2030, at a CAGR of 7.89%. This represents substantial growth potential for investors entering the market now.
| Timeframe | Expected Price Growth | Key Drivers |
|---|---|---|
| H2 2025 | 3-5% | Continued Vision 2030 momentum |
| 2026 | 5-8% | FIFA World Cup preparations |
| 2027-2030 | 6-8% annually | Population growth, mega-projects |
The IMF revised Saudi Arabia's 2025 growth forecast to 3.3%, reflecting confidence in the economy's resilience. The residential real estate market is projected to grow from USD 42 billion in 2024 to USD 66 billion by 2030.
Riyadh and NEOM are expected to outperform these averages, while secondary cities may see more modest but still healthy gains.
Should international investors choose Saudi Arabia over Dubai for property investment in 2025?
International investors should seriously consider Saudi Arabia for its superior growth potential and investment fundamentals.
Saudi Arabia offers higher capital appreciation potential (10%+ in prime areas versus 5-7% in Dubai), ground-floor opportunities in mega-projects like NEOM, and a favorable tax environment with no property taxes. The government's backing through Vision 2030 provides long-term stability and growth assurance.
With rental yields averaging 6.75% compared to Dubai's 4.87%, Saudi Arabia provides better income returns. The Kingdom is also less saturated than Dubai's mature market, offering more opportunities for value creation.
However, Dubai maintains advantages in market maturity, established expat infrastructure, proven track record, and greater market liquidity. The choice depends on investor risk tolerance and investment timeline.
For investors seeking higher returns and willing to embrace a dynamic, evolving market, Saudi Arabia presents compelling opportunities that are increasingly difficult to find in Dubai's more established market. It's something we develop in our Saudi Arabia property pack.
How is NEOM performing for property investors in 2025?
NEOM is successfully transitioning from ambitious concept to investment reality.
Phase 1B is now underway, with land values in designated development zones experiencing significant appreciation. Off-plan sales are exceeding projections, and early investors who bought into Phase 1A are already seeing paper gains of 20-30%.
The project's scale and government backing provide confidence, with the world's largest earthworks and piling operation announced at The Line site in February 2024. This demonstrates the serious commitment to making NEOM a reality.
However, NEOM remains a long-term investment play. Investors should expect to hold properties for 5-10 years to realize the full potential as the city develops its promised infrastructure and attracts planned population targets. The project offers unique opportunities for those willing to invest in Saudi Arabia's most ambitious vision.
Current rental yield projections for completed units range from 5.5-6.5%, with significant capital appreciation expected as infrastructure develops.
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.
Yes, June 2025 is an excellent time to buy property in Saudi Arabia. The combination of strong price growth with Riyadh up 10% and Jeddah up 5% year-on-year, attractive rental yields averaging 6.75%, liberalized foreign ownership rules, and massive infrastructure investment creates ideal conditions for both investors and end-users.
While some risks remain - including execution challenges for mega-projects and global economic uncertainties - the government's commitment to Vision 2030 and the momentum already achieved suggest the market's positive trajectory will continue. Buyers who enter the market now, particularly in Riyadh's connected districts or NEOM's early phases, are well-positioned to benefit from Saudi Arabia's ambitious transformation.
Sources
- Saudi Arabia's Residential Property Market Analysis 2025
- Saudi Residential Real Estate: The Market Is Booming - S&P Global
- Real Estate - Saudi Arabia - Statista Market Forecast
- Saudi Arabia Real Estate Market - Overview & Report Analysis
- Saudi Arabia Commercial Real Estate Industry Report 2025
- The Future of Saudi Arabia's Real Estate Market (2025 & Beyond)
- KSA Real Estate Predictions 2025 - Deloitte Middle East
- Saudi Arabia Residential Real Estate Market Size 2033
- Saudi Arabia Residential Real Estate Market Trends & Forecast 2030
- Rental Yields in Saudi Arabia in 2025 - Global Property Guide
- Saudi banks' mortgage lending surges to near 3-year high - Arab News