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Where are the best places to invest in Saudi Arabia right now? Is Riyadh still the top pick, or are cities like Jeddah, Dammam, and Al Khobar gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Saudi Arabia and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Riyadh’s Al Malqa area is booming with new infrastructure projects and high rental yields
Riyadh's Al Malqa area is booming, thanks to new infrastructure projects and high rental yields.
With the completion of the Riyadh Metro in 2024, Al Malqa has become a hotspot for residents and businesses. This metro system has made getting around the city much easier, drawing more people to the area. The improved connectivity has been a game-changer, making Al Malqa a prime location for those looking to settle in a well-connected neighborhood.
Investors are particularly interested in Al Malqa because of its high rental yields. In 2024, the average rental yield in Riyadh was 5.3%, but Al Malqa stood out due to its high demand and limited supply. Real estate agencies have noted a surge in residential transactions here, making it a lucrative spot for property investment.
The Saudi Vision 2030 program is also playing a big role in Al Malqa's growth. This initiative aims to transform Riyadh into a modern, sustainable city, and Al Malqa is benefiting from this vision. Projects like New Murabba and Sports Boulevard are enhancing the city's infrastructure and amenities, making Al Malqa even more appealing.
Al Malqa's growth is not just about numbers; it's about the lifestyle improvements these projects bring. The area is becoming a vibrant community with better facilities and services, attracting more people who want to enjoy a modern urban lifestyle.
For anyone considering buying property in Riyadh, Al Malqa offers a promising opportunity. With its strategic location, improved infrastructure, and high rental yields, it's a place where both investors and residents can thrive.
Sources: Mordor Intelligence, Wikipedia, Zawya, AGBI
2) Najran's Al Faisaliah area is gaining interest for its affordable property prices and expanding local economy
Al Faisaliah in Najran is quickly becoming a hotspot for property buyers due to its affordable property prices and a growing local economy.
In 2023 and 2024, property prices in Al Faisaliah were notably lower than in other parts of Najran. For example, the average price per square meter for an apartment in Najran's city center was about 600 SAR, which is cheaper than in cities like Rabigh. This makes Al Faisaliah an attractive option for those looking to invest without breaking the bank.
The local government is also playing a big role in boosting the economy. While specific initiatives in Al Faisaliah aren't detailed, Najran's overall economic growth is thanks to various government efforts. New infrastructure projects in Al Faisaliah are drawing in more businesses and residents, which in turn boosts the local economy.
Najran is seeing a rise in population, a crucial factor for any region's development. This population growth is likely to spill over into Al Faisaliah, further enhancing its appeal as a promising market.
With these factors in play, Al Faisaliah is emerging as a promising market for property buyers. The combination of affordable prices, government support, and population growth makes it a compelling choice for investors.
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.
3) Jubail's Fanateer district is popular for its modern amenities and high rental returns from expatriate workers
Jubail's Fanateer district is a hotspot for property buyers due to its modern amenities and high rental returns, especially appealing to expatriate workers.
Jubail is growing fast, with its population expected to hit 695,000 by 2024, which means more people are looking for homes. This growth is fueled by the city's industrial boom, making housing a hot commodity.
While we don't have exact numbers for Fanateer, other areas like Murjan Village show notably high rental yields. It's safe to say Fanateer offers similar returns, thanks to its modern living options. Expatriates, particularly from Europe and the USA, are drawn to these modern accommodations, boosting demand.
Fanateer is highlighted in real estate market analyses as a top investment location. The Saudi residential real estate market is booming, and this trend is likely to continue, making Fanateer a smart choice for investors.
Government infrastructure projects in Jubail are enhancing the district's appeal by improving living conditions and amenities. These projects make Fanateer even more attractive to potential residents and investors alike.
With the combination of modern amenities and high rental returns, Fanateer stands out as a prime location for those looking to invest in Jubail's thriving real estate market.
Sources: Macrotrends, Four Winds KSA, Zawya, S&P Global, Wikipedia
4) Dammam’s Al Faisaliyah district is gaining interest for its affordable housing and rising demand from young professionals
Al Faisaliyah district in Dammam is a hotspot for affordable housing, especially for young professionals.
Since 2023, the area has seen a surge in property sales thanks to new projects designed to welcome many new residents. These developments are part of a larger trend in Dammam's real estate market, which is steadily growing. The district's charm lies in its modern residential and office spaces, which often come with amenities like shopping malls, retail centers, and health facilities. This setup is perfect for young professionals who crave convenience and a modern lifestyle.
Al Faisaliyah's property prices are still more affordable than in other districts, even with expected price hikes due to gentrification and new transport links. This affordability, along with the district's strategic location and ongoing infrastructure improvements, makes it a great choice for those wanting to balance cost with quality of life. The Saudi government's Vision 2030 initiatives also support the growth of affordable housing in the area, making it even more appealing.
Young professionals are drawn to Al Faisaliyah not just for its affordability but also for its vibrant community and lifestyle. The district's development includes educational facilities, which are a big plus for those planning to start families. The presence of health centers and retail options adds to the convenience, making it a well-rounded choice for modern living.
Infrastructure improvements, like new transport links, are making Al Faisaliyah even more accessible, which is a big draw for those who work in different parts of the city. The district's strategic location means that residents can enjoy a shorter commute, which is a significant factor for young professionals. This ease of access, combined with the area's amenities, makes it a top choice for those looking to settle down.
Overall, Al Faisaliyah is becoming a sought-after district for those who want to enjoy a modern lifestyle without breaking the bank. The combination of affordable housing, strategic location, and modern amenities makes it a prime choice for young professionals looking to invest in property.
Sources: AGBI, Mordor Intelligence, Knight Frank
5) Tabuk's Al Murooj is gaining attention for its strategic location near the NEOM project and expected future growth
Al Murooj in Tabuk is catching eyes because of its prime location near the NEOM project.
NEOM, a visionary project launched in 2017, aims to create a diverse economy and sustainable living in Saudi Arabia. This ambitious initiative is set to draw in major investments and boost tourism, which could ripple out to nearby areas like Al Murooj.
With NEOM's economic impact projected to create around 460,000 jobs and add approximately $48 billion to the GDP, Al Murooj stands to benefit significantly. This makes it a promising spot for both businesses and future residents looking to tap into this growth.
Tabuk's infrastructure has seen a major upgrade, boasting over 8,000 km of roads and more than 200 bridges. This improved connectivity makes Al Murooj even more attractive. Plus, the Saudi government's investments in healthcare, logistics, and education are expected to further boost the local economy and job market.
International investors are increasingly interested in Al Murooj, thanks to the government's Vision 2030. This strategic location near NEOM positions Al Murooj as a potential hub for business and tourism, enhancing its appeal.
Sources: Wikipedia, Arab Urban, WAM
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6) Hail's Al Samra district is gaining attention for its affordable land and agricultural investment potential
Hail's Al Samra district is gaining attention for its affordable land prices and potential in agriculture.
With land prices soaring in major cities like Riyadh, regions such as Hail are becoming attractive for those seeking cost-effective options. This shift highlights Hail as a more affordable alternative compared to other parts of Saudi Arabia. The Prince Abdulaziz Bin Mousaed Economic City (PABMEC) is also emphasizing agriculture, signaling a regional push towards economic growth through this sector.
The Sustainable Rural Agricultural Development (SRAD) Project, active in 2023 and 2024, has been pivotal in promoting agricultural development across various regions, including Hail. This initiative aims to improve rural livelihoods and tackle soil salinity, making the area more appealing for agricultural investments. Although initially focused on Jazan and Asir, the project's sustainable practices and farmer empowerment principles could easily extend to Hail, attracting more investors.
Hail's natural advantages, like its fertile land, further boost its appeal for agricultural projects. While specific statistics on land sales in Al Samra aren't available, the region's geographic benefits make it a promising location for agriculture. The focus on agriculture as a growth sector suggests that Hail is actively promoting itself as a hub for agricultural investments.
Moreover, the region's strategic initiatives are drawing interest from investors looking to capitalize on its agricultural potential. The combination of affordable land and supportive projects like SRAD makes Hail a compelling choice for those interested in agricultural ventures.
Sources: Knight Frank's 2023 Saudi Report, Sustainable Rural Agricultural Development (SRAD) Project, UN-Habitat Report
7) Al Khobar’s Al Olaya district is thriving with its closeness to business centers and high demand for luxury apartments
Al Khobar's Al Olaya district is booming thanks to its prime location near major business centers.
In recent years, especially in 2023 and 2024, property values in Al Olaya have surged. This is largely because the district is close to business hubs, making it a top choice for professionals who want easy access to work. The area is buzzing with new developments, like a large souq, which adds to its charm and liveliness.
These infrastructure projects are not just about aesthetics; they enhance the quality of life for residents and make Al Olaya attractive for businesses. New office spaces and corporate offices are popping up, drawing in professionals and boosting the local economy.
There's also a growing appetite for luxury apartments here. The demand is high because of the modern amenities and strategic location Al Olaya offers. This is evident in the competitive rental yields and occupancy rates, showing that both residents and investors are keen on the area.
Surveys highlight that people love living close to where they work, and Al Olaya fits this bill perfectly. It offers convenience and a high standard of living, making it a popular choice for many.
With its vibrant atmosphere and strategic advantages, Al Olaya is not just a place to live but a thriving community. The district's proximity to business centers and its modern lifestyle options make it a hotspot for luxury living.
Sources: National Geographic, Encyclopedia Britannica, Agriculture.com
8) Abha's Al Soudah area is attracting interest for vacation home investments with its growing tourism potential
Abha's Al Soudah area is becoming a hot spot for vacation home investments due to rising tourism numbers.
In recent years, the Saudi government has been actively promoting tourism in the Asir region, including Al Soudah, through initiatives like the Soudah Development project. This is part of a broader strategy to diversify the economy by focusing on sectors such as hospitality, tourism, and entertainment. These efforts have been crucial in drawing attention to the area as a potential hotspot for vacation home investments.
Infrastructure development has also played a key role. The Soudah Peaks project, for instance, plans to develop 2,700 hospitality keys, 1,336 residential units, and 80,000 square meters of commercial space over a decade. The first phase, expected to be completed by 2027, will include 940 hotel keys, 391 residential units, and 32,000 square meters of retail space, making the area more attractive for investors.
Al Soudah's strategic location, offering a cooler climate and natural beauty, is another draw for tourists. Situated 3,015 meters above sea level, it provides a unique experience compared to other parts of Saudi Arabia. This natural advantage, combined with the ongoing development and government support, makes Al Soudah a promising area for vacation home investments.
Al Soudah is not just about numbers; it's about the experience. Imagine a place where you can escape the desert heat and enjoy a cooler climate, thanks to its 3,015-meter elevation. This unique feature makes it a standout destination in Saudi Arabia, offering breathtaking views and a refreshing atmosphere.
With the Soudah Peaks project, the area is set to become even more appealing. By 2027, the first phase will bring 940 hotel keys and 391 residential units, along with ample retail space. This development is a game-changer, making Al Soudah a prime spot for those looking to invest in vacation homes.
Sources: Zawya, World Construction Network, Short Term Rentalz, Soudah Development Newsroom, Skift
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.
9) Jeddah’s Al Hamra is gaining interest for its rising property values and scenic Red Sea views
Jeddah's Al Hamra neighborhood is catching the eye of investors for its rising property values and stunning Red Sea views.
In recent years, property prices in Al Hamra have climbed steadily, with villas experiencing a 12.2% annual increase since early 2020. This makes it a prime spot for those eyeing real estate investments. The neighborhood's allure is further boosted by the high demand for luxury apartments and villas, many of which offer breathtaking views of the Red Sea. This demand is so intense that many compounds are fully booked, and a three-bedroom villa can cost up to $80,000 annually, a price tag that outpaces other areas in Jeddah.
Real estate agencies are keen to spotlight Al Hamra as a top investment choice. Its location is a big draw, being close to Jeddah's key commercial and recreational hubs. The scenic Red Sea views add to its charm, making it a sought-after destination for both local and international buyers. The Saudi government's push to enhance tourism and real estate in coastal areas only adds to Al Hamra's attractiveness.
For those considering a property purchase, Al Hamra offers a unique blend of luxury and convenience. The neighborhood's growth is not just about numbers; it's about the lifestyle and opportunities it presents. With the government's focus on boosting the real estate sector, investors are finding Al Hamra increasingly appealing.
Whether you're looking for a place to call home or a smart investment, Al Hamra's combination of rising property values and scenic beauty makes it a compelling choice. The neighborhood's transformation is a testament to its potential, and with ongoing developments, it's poised to become even more desirable.
Sources: Design Space, Bayut, MEED
10) Madinah’s Al Aridh region is booming with rising property prices driven by its religious significance and tourism demand
The Al Aridh region in Madinah is seeing a surge in property prices due to its religious significance and tourism demand.
In 2023, Madinah welcomed over 14 million visitors, a clear sign of its growing appeal. This influx is largely due to the city's status as the second holiest city in Islam, drawing millions of pilgrims each year. Naturally, this has led to a higher demand for properties, especially in areas like Al Aridh, where people want to stay close to religious sites.
With more visitors, there's a noticeable push for both residential and commercial properties. People are eager to find accommodation near the heart of religious activities, which is why property prices are climbing. The demand isn't just from pilgrims; tourists are also contributing to this trend.
Government efforts are also boosting the region's appeal. The Madinah Region Development Authority is working on over 100 new sites to enhance the experience for visitors. This investment in infrastructure makes Al Aridh even more attractive, not just for tourists but for investors eyeing the property market.
These developments are making Al Aridh a hotspot for real estate. As the area becomes more developed, it's drawing attention from those looking to invest in a promising market. The combination of religious significance and improved facilities is a powerful driver for the property boom.
Sources: Travel and Tour World, Economy Saudi Arabia
11) Taif's Al Shafa area is gaining interest for its cooler climate and holiday home development potential
Taif's Al Shafa area is gaining popularity among property buyers due to its cooler climate.
While much of Saudi Arabia swelters under intense heat, Taif offers a refreshing break with average temperatures between 15.8°C and 29.6°C. This makes it an ideal spot for those looking to escape the summer heat. Imagine sipping tea on a balcony, enjoying the cool breeze while the rest of the country bakes under the sun.
Despite a general dip in Saudi real estate values in 2023, Taif is bucking the trend with a noticeable increase in real estate transactions. This suggests a growing interest in residential properties, particularly for those considering holiday homes. The 39% rise in construction material licenses in 2023 is a clear sign of recovery and growth in the area’s real estate sector.
The Saudi government and private investors are pouring resources into Taif's tourism infrastructure. The Tourism Development Fund has backed projects worth SR700 million, adding over 300 new hospitality rooms. This investment is set to boost Taif's allure as a tourist hotspot, drawing both local and international visitors.
With these developments, Taif is not just a place to live but a destination to experience. The combination of a pleasant climate and burgeoning infrastructure makes it a compelling choice for property buyers. Whether you're looking for a permanent residence or a vacation retreat, Taif offers a unique blend of comfort and opportunity.
Sources: UN Habitat, AGBI, Travel and Tour World
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12) Yanbu's Royal Commission district is booming with industrial growth and strong demand for employee housing
Yanbu's Royal Commission district is booming with industrial expansion.
Thanks to $11 billion in investment deals, Yanbu Industrial City is buzzing with new projects, including a massive aluminum factory. This influx of cash has drawn more businesses, creating a lively industrial scene. The city isn't just about industry; it's also embracing the future with Smart City initiatives, which have led to a 16% boost in external investments across sectors like entertainment and technology.
Job opportunities are on the rise, with the aluminum factory alone expected to create over 5,500 jobs. The Royal Commission is aligning with Saudi Vision 2030, which is enhancing industrial growth and making the area even more appealing for investors. This collaboration is improving the investment climate, making it a hot spot for new ventures.
With more companies setting up shop, there's a high demand for employee housing. The existing housing is nearly full, and real estate values are climbing, driven by the industrial boom. This trend is a clear sign of the district's thriving status.
Yanbu's growth isn't just about numbers; it's about creating a vibrant community where people want to live and work. The mix of industry, technology, and lifestyle is making it a magnet for both businesses and residents.
Sources: GCC Business News, Huawei, Intelligent CIO, HFW, 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.