Residential sales values in Riyadh reached SAR17.6 billion ($4.69 billion) in Q3 2025, with the city preparing to deliver 57,000 units in 2026 and 2027, according to research from Cavendish Maxwell.
Sales transactions in Riyadh hit 13,000 between July and September 2025, up 19 per cent on the previous quarter.
The city delivered 10,000 units in the first nine months of the year, with another 6,000 during Q4.
Dammam transactions surge 60% year-on-year in Q3 2025
Dammam sales reached their highest levels for several years, with 3,000 transactions in Q3 2025 – up 60 per cent on the same time last year and 37 per cent on Q2 2025. Sales values reached SAR3.2 billion ($850 million).
Jeddah witnessed a boost in sales, with transactions rising by 10 per cent to 7,500 and sales values reaching SAR8.7 billion ($2.31 billion) – a 9 per cent increase compared to Q2.
While all three cities have seen increases in sales values and volumes, Riyadh and Jeddah both saw a year-on-year decline, driven by affordability pressures. Sales were down 44 per cent in Riyadh and 19 per cent in Jeddah.
“Riyadh’s rapid price appreciation in 2024 led to sharp increases in both sales and rental prices, prompting the Government to introduce a five-year rent freeze to address affordability concerns. In Jeddah, price conditions have stabilised and affordability pressures have eased slightly. Meanwhile Dammam, where property is more affordable, is emerging as a new hot spot for property investment, with a year-on-year surge in buying activity from both end-users and investors,” Sean Heckford, Director of Built Asset Consulting at Cavendish Maxwell said in a statement.
Riyadh delivers 16,000 homes in 2025 as residential sales reach SAR17.6 billion
The increases in sales prices were in Riyadh, where apartment prices rose to an average SAR6,160 ($1,642) per square metre in Q3, up 7.5 per cent compared to the same time last year. Villa prices in the capital reached SAR5,500 ($1,466) per square metre, up 10.1 per cent.
In Jeddah, apartment prices were up 1.6 per cent to SAR4,360 ($1,162) per square metre, while villa costs rose 3.1 per cent to reach SAR5,140 ($1,370) per square metre. Dammam apartment prices climbed by 5.8 per cent year-on-year, and villas by 3.2 per cent.
Riyadh commanded the hikes in rents, with apartments up by 11.8 per cent year-on-year and villas by 10.7 per cent. Jeddah apartment rents jumped 5.6 per cent year-on-year, but villa rents saw a decline of 2.1 per cent. In Dammam, apartment rents were up 4.8 per cent, with villa rents rising by 2.2 per cent.
The three cities delivered 13,500 homes in the first nine months of the year, with 2025 deliveries expected to reach 22,800 by the end of December. Another 105,000 are slated for 2026 and 2027.
By the end of 2025, Riyadh will have brought 16,000 homes to the market; Jeddah 5,000 and Dammam 1,800. Riyadh has 57,000 units in the pipeline for 2026 and 2027, with 36,000 expected in Jeddah and 12,000 in Dammam.
Foreign ownership law set to boost Saudi property demand from January 2026
Laws and tax reforms are expected to boost real estate demand and development in 2026 and beyond.
The foreign ownership law, which comes into effect in January 2026, is a step forward for Saudi Arabia’s real estate sector that should accelerate buyer activity, while the White Land Tax incentivises land owners to either sell or develop their plots.
Riyadh’s five-year rent freeze, announced in September, will make properties more affordable, but could reduce landlords’ incentives to maintain their properties or invest in stock, creating pressure on developments. Cavendish Maxwell said it will be important to track how these regulations influence market dynamics.
“Saudi Arabia’s Q3 residential market performance reflects a transitional phase marked by strong macroeconomic fundamentals and evolving regulatory measures. Despite affordability challenges in Riyadh, demand remains resilient, supported by the new laws and tax systems. Jeddah demonstrates stability with balanced supply and demand dynamics, and Dammam stands out as a growth hotspot driven by affordability and investor interest. Vision 2030 initiatives and infrastructure investments will be pivotal in sustaining momentum and unlocking new investment opportunities across all major cities in KSA,” Heckford added.
