Riyadh, Jeddah to add 27,500 new residential units by year-end: JLL

Riyadh city 

Real estate consultancy JLL said Saudi Arabia’s residential market has shown signs of increasing maturity, with several urban centers recording significant rental growth and varying transaction performance across the Kingdom.

In its latest report, JLL noted that as end-user needs evolve and demand for affordable apartments continues to rise, this market activity supports the Kingdom’s ambitious urban development projects under the Vision 2030 agenda. It added that this agenda attracts substantial investment into the main residential markets of Riyadh, Jeddah, and the Dammam Metropolitan Area.

Population growth, economic diversification, and government homeownership initiatives are also driving these investments.

The report further highlighted the strategic impact of master-planned residential communities, emphasizing that the growing demand for integrated living environments will shape future supply, particularly in Riyadh and Jeddah.

While ongoing government initiatives created strong demand, the sector remains poised for further growth and diversification, supported by the anticipated foreign ownership law scheduled to take effect in January 2026.

According to the report, this law is expected to revitalize the sector and expand housing supply, attracting international developers and investors to the Saudi market and opening broader opportunities for all stakeholders across the Kingdom.

Real estate market performance indicators in Saudi Arabia

JLL highlighted strong momentum in Riyadh’s residential market, with villa prices rising significantly by 15.1% in Q2 2025 to reach SAR 6,567 per square meter (sqm), while apartment prices increased by 13.3% to SAR 6,067 per sqm.

In the luxury segment, average prices reached SAR 9,203 per sqm during the quarter.

Jeddah’s residential market showed a mixed performance: villa prices rose by 4.4% year-on-year, reaching SAR 6,565 per sqm, while apartment prices declined by 3% over the same period. The average price for luxury villas stood at SAR 7,831 per sqm.

In Dammam Metropolitan Area—which includes Dammam, Khobar, and Jubail—the report noted increasing demand for upscale residential projects offering diverse community and recreational amenities. In Khobar, apartment prices rose by 5.8%, while villa prices increased by 2.2%.

In Dammam, where the apartment stock is larger, prices remained relatively stable, while villa prices inched up by 1.8%.

Annual Change in Sales and Rentals (Q2 2025)

The report also noted diverging transaction dynamics across key Saudi cities. In Riyadh, total sales transactions fell by 1.5% YoY in Q2 2025, with 2,758 transactions recorded, of which 81.3% were apartments. In Jeddah, transactions surged by 46.1% to 1,100.

Khobar's sales increased notably by 23.7%, while Dammam saw a 6.7% decline. Apartments accounted for the majority of transactions in both cities.

JLL highlighted the number of completed and expected units, as well as total stock, as follows:

Looking ahead, housing supply in Riyadh and Jeddah is expected to expand northward in line with the cities’ growth trends, with a significant portion of new stock concentrated in master-planned residential communities.

In Riyadh, rising demand for apartments as the preferred type of housing units is encouraging developers to launch more offerings equipped with modern amenities such as gyms and adequate parking spaces.

In Dammam Metropolitan Area, current residential stock is primarily concentrated along the coastal areas of Khobar and Dammam, while future supply is expected to shift inland toward the southern districts of the region.