Riyadh Metro opening spurs prices of nearby residential properties: Knight Fran

The opening of the Riyadh Metro has positively impacted residential property prices in the Saudi capital, with some villas located near metro stations jumping 78% compared to 2023, said Knight Frank, the global real estate consultancy.

The metro project has already proven successful, as the six-line, 85-station network carried over 100 million passengers in its first nine months of operation, demonstrating high demand for better connectivity and city mobility, it added in a research paper.

Knight Frank compared villa prices in three distinct neighborhoods—Tuwaiq, Al Yarmouk, and Al Malqa. In each case, it examined homes located within a 15-minute walking distance from metro stations versus those located further away.

The study found a noticeable direct impact on villa prices, showing the emergence of what it termed a “metro premium.”

In Tuwaiq, property values near the metro rose by 20% between Q2 2023 and Q2 2025, compared to 10% growth in more distant areas. The effect was even more pronounced in Al Yarmouk, where prices near the metro surged 78% while prices in outer areas increased merely by 22%.

Besides, in Al Malqa, one of Riyadh’s most established neighborhoods, property values close to the metro increased by 20%.

Knight Frank estimated that about 1.5 million residents, roughly 18% of Riyadh’s population of 8.3 million, live within a 15-minute walking distance from a metro station. This is a noteworthy number for a recently established network, meaning nearly one in five residents has enjoyed enhanced accessibility since day one.

According to current projections, the metro may also cut down on nearly 250,000 daily car trips and save over 400,000 liters of fuel per day, thus reinforcing its role in advancing sustainable urban mobility, the research paper stated.

The firm added that expansion plans, including a 65-kilometer corridor for the seventh metro line connecting Qiddiya, King Salman Park, Diriyah Gate, New Murabba, and King Khalid International Airport, will expand the benefits of sustainability and accessibility while creating new horizons for the capital's urban development.

Knight Frank also highlighted that the metro network creates opportunities for developers and investors to build integrated urban communities around new stations and to redevelop areas that were previously considered remote or unappealing for investment.

It further noted that operating the metro in Riyadh, along with carrying out supportive adjustments to land-use policies, such as increasing urban density around stations, could lead to transit-oriented development dynamics. These include increased pedestrian traffic that stimulates shop trade, the emergence of new residential projects around stations, and a shift in residents’ preferences toward neighborhoods served by public transportation.

Since the metro cannot operate independently of other forms of transportation, these impacts progressively spread beyond the immediate vicinity of stations. To maximize its value, it must be supported by reliable buses and improved pedestrian networks. Recent passenger data underscores this interconnection, as buses across the Kingdom carried 23 million passengers in Q1 2025, a 34% increase compared to Q4 2024, the report added.

Knight Frank further stated that, although the number of bus passengers across the Kingdom fell by 7% in Q2 2025 quarter-on-quarter, Riyadh’s figures continued to rise, with the number of passengers increasing from 15 million to 15.6 million.