Residential property prices mixed in Q3 2025: JLL

Riyadh city

JLL said that growth in Saudi residential property prices has slowed and, in some cases, declined following a period of strong expansion, particularly in the capital, Riyadh.

In a report, JLL noted that other markets recorded strong demand accompanied by continued price increases, indicating divergent market dynamics across Saudi Arabia’s major urban centers.

The company added that demand for residential units remains robust in the Kingdom’s main cities, supported by population growth and major investments in Riyadh, which continue to drive market momentum.

Jeddah and the Dammam Metropolitan Area (comprising Dammam, Khobar, and Dhahran) have seen steady demand, underpinned by economic diversification efforts and infrastructure development initiatives.

JLL stated that the total residential housing stock in Riyadh reached approximately 2.18 million units by the end of the third quarter of 2025, with around 9,468 additional units expected to be delivered during the remainder of the year.

In Jeddah, supply stood at around 1.23 million units following the completion of 4,320 units during Q3 2025. Meanwhile, approximately 428 residential units were delivered in the Dammam Metropolitan Area during the quarter, bringing total housing stock to about 725,810 units, with a further 400 units expected to enter the market before year-end.

The report identified the number of units completed during Q3 2025, the units expected to be completed, and total market stock, as shown in the table below:

In Riyadh, sale prices continued to rise from the beginning of the year through Q3 2025. Apartment prices increased by 10.3% year-on-year (YoY) to reach SAR 6,501 per square meter (sqm), while villa prices recorded a similar increase of 9.6% to SAR 6,810 per sqm. The average price of luxury villas reached SAR 10,223 per sqm.

Jeddah recorded a more mixed performance during Q3 2025. Average apartment prices declined by 2.8% YoY to SAR 4,477 per sqm, while average villa prices rose by 3.1% to SAR 6,668 per sqm.

Dammam city saw relatively weak performance in Q3 2025. Apartment prices remained broadly stable, rising by only 0.3% YoY to an average of SAR 3,578 per sqm. The average price of villas increased slightly to SAR 4,917 per sqm, marking an annual rise of around 1%.

In Al Khobar, sale prices continued to increase from the beginning of the year through Q3 2025. Apartment prices rose by 5% YoY to SAR 3,956 per sqm, while villa prices increased by 1.6% to SAR 6,104 per square meter.

The report noted that while growing cost concerns are pushing buyers toward apartments, a recently emerging trend—rising demand for townhouse units—has become evident. This segment offers a middle ground between apartments and traditional villas by providing more space and privacy at relatively affordable prices.

JLL added that the implementation of a five-year rent freeze on residential and commercial leases—whether renewed or vacant—is expected to contribute to stabilizing living costs and curbing speculative rent increases. This, in turn, may shift investment focus toward high-quality, long-term real estate assets and real estate development.