AI Summary
A view of Riyadh city. Villa prices in the capital continued their upward trend, rising 8% YoY in Q2 2025 to SAR 5,470 per sqm
Global real estate consultancy Knight Frank said that the residential segment continues to drive Saudi Arabia’s real estate market, accounting for around 63% of total real estate transactions valued at SAR 123.8 billion during the first half of 2025.
The number of residential transactions rose by 7% year-on-year (YoY) to around 93,700 deals, with total value of SAR 77.5 billion. This momentum was driven by the growth in mortgage activity, ongoing government support programs, and the delivery of new housing units in key urban centers.
Knight Frank also noted that Madinah saw the highest growth rate in the value of residential real estate transactions across the Kingdom during the six-month period, rising 49% YoY to SAR 3.4 billion.
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Key Indicators |
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Region |
Indicator |
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Madinah |
Recorded the highest growth rate in residential transaction values across the Kingdom during H1 2025, up 49% YoY to SAR 3.4 billion. |
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Transaction volumes rose 38% YoY, while the number of deals fell 31% YoY. The total value declined 20% YoY to SAR 29 billion, marking the first annual decline in years. Apartment prices increased 2.5% over the past 12 months, reaching an average of SAR 3,835 per square meter (sqm) in Q2 2025. |
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Villa prices slightly decreased by 0.3% YoY, averaging SAR 3,500 per sqm. |
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The number of housing units reached 353,400 by the end of 2024, with an additional 27,860 units expected by 2028. Upon project completion, the total inventory of housing units in Madinah will reach 381,200. |
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Riyadh |
Average apartment prices rose 11% YoY in Q2 2025 to SAR 6,175 per sqm, driven by strong demand in well-connected, centrally located districts. |
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Prices in Al-Taawun district jumped 32% annually to SAR 9,470 per sqm. |
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In King Abdullah District, prices increased 17% YoY to SAR 7,656 per sqm. |
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In Southern Riyadh, prices remained moderate to low, averaging SAR 3,000 per sqm, reflecting the ongoing entry of new buyers. |
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Villa prices nationwide continued their upward trend, rising 8% YoY in Q2 2025 to SAR 5,470 per sqm. Northern Riyadh remains the most expensive area, averaging SAR 8,660 per sqm. Al-Sahafa recorded the fastest growth, up 24% YoY to SAR 8,050 per sqm, followed by Al-Narjis rising 17% YoY to SAR 8,750 per sqm. |
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Makkah |
Apartment prices fell by 0.5% YoY to SAR 3,650 per sqm, while villa prices rose slightly by 0.4% YoY to SAR 3,420 per sqm. |
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The number of housing units in Makkah reached 428,200 in Q2 2025, with supply expected to reach around 462,000 units by 2028. |
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Jeddah |
Transaction volumes increased 19% in the last 12 months, with total transaction values up 28% YoY to SAR 17.3 billion. |
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The average apartment price in Jeddah reached SAR 4,324 per sqm in Q2 2025, up 2.7% YoY. The highest increases were in central and western areas, where the average price rose 6% YoY to SAR 5,246 per sqm. Al-Naeem district recorded the highest growth, up 12.2% YoY to SAR 4,885 per sqm, followed by Al-Zahraa increasing 10% annually to SAR 6,325 per sqm. |
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Villa prices showed more moderate growth, up 3.2% YoY to SAR 5,040 per sqm. Northern districts remain the most in demand, with prices up 5.4% YoY to SAR 6,150 per sqm. North Obhur led with a 9.2% YoY increase to SAR 5,800 per sqm, followed by Al-Nahda rising 8.3% YoY to SAR 5,850 per sqm. |
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The report highlighted that after a prolonged expansion period, the Riyadh residential market entered a rebalancing phase during H1 2025. It indicated that the slower transaction activity was not translated into downward pressure on prices. Apartment and villa prices continued to rise, reflecting resilient demand in key submarkets.
Knight Frank noted that the Riyadh Metro launch boosted the appeal of areas with improved public transit access. Districts such as Al-Olaya, Al-Yasmeen, and Hittin saw notable increases in villa prices.
Citywide, demand is shifting toward master-planned gated communities that integrate residential, commercial, educational, and healthcare components. Developments like Roshn’s Al-Arous project, backed by the Public Investment Fund (PIF), are attracting significant interest. These integrated models are especially appealing in coastal areas, where demand for access to both community amenities and waterfront views is growing, according to the report.
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