Residential sales values in Saudi Arabia’s capital Riyadh hit a total figure of SAR17.6 billion (USD 4.69 billion) in Q3 2025 as the city prepares to deliver 57,000 new units in 2026 and 2027, stated new research from leading real estate advisory and property consultancy Cavendish Maxwell.
“The residential sales transactions in Riyadh reached 13,000 between July and September 2025, up nearly 19% on the previous quarter. The capital delivered 10,000 new units in the first nine months of the year, with another 6,000 during Q4,” the report stated.
Apart from Riyadh, another Saudi city, Dammam, which made its debut in Cavendish Maxwell’s latest KSA report, saw its property sales reaching the highest levels for several years, with 3,000 transactions in Q3 2025, up nearly 60% on the same time in 2024 and 37% on Q2 2025. Jeddah too witnessed a boost in quarterly sales, as transactions rose by 10% to 7,500 and sales values reached SAR8.7 billion (USD 2.31 billion), a 9% increase compared to Q2.
While all three cities have seen quarterly increases in sales values and volumes, Riyadh and Jeddah both saw a year-on-year decline, largely driven by affordability pressures. Sales were down 44% in Riyadh and 19% in Jeddah.
Riyadh-based Sean Heckford, Director of Built Asset Consulting at Cavendish Maxwell, said, “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.”
The latest “KSA Residential Market Report” also witnessed Q3 sales prices for apartments and villas rising across Riyadh, Dammam and Jeddah, with the biggest increases seen in the Saudi capital. Rental rates for apartments, on the other hand, were up in all three areas, with Riyadh commanding the largest uptick. Villa rents, on the other hand, rose in Riyadh and Dammam, but fell slightly in Jeddah.
By the end of 2025, 22,800 new units are expected to be delivered during the year across the three cities, and another 105,000 are in the pipeline till 2027. And most importantly, the Kingdom’s “White Land Tax” reforms and new foreign ownership laws will further accelerate demand.
The largest increases in sales prices were in Riyadh, where apartment prices rose to an average SAR6,160 (USD 1,642) psm (per sq m) in Q3, up 7.5% compared to the same time in 2024. Villa prices in the capital reached SAR5,500 (USD 1,466) psm, up 10.1%. In Jeddah, apartment prices were up 1.6% to SAR4,360 (USD 1,162) psm, while villa costs rose 3.1% to reach SAR5,140 (USD 1,370) psm. Dammam apartment prices climbed by 5.8% year-on-year, and villas by 3.2%.
“Riyadh also commanded the highest hikes in rents, with apartments up by 11.8% year-on-year and villas by 10.7%. Jeddah apartment rents increased by 5.6% year-over-year, while villa rents declined by 2.1%. In Dammam, apartment rents increased by 4.8%, while villa rents rose by 2.2%. Combined, the three cities delivered 13,500 new homes in the first nine months of the year, with total 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 new homes to the market; Jeddah 5,000 and Dammam 1,800. Riyadh has 57,000 new units in the pipeline for 2026 and 2027, with 36,000 expected in Jeddah and 12,000 in Dammam,” Cavendish Maxwell noted.
Meanwhile, the Kingdom has introduced a new foreign ownership law, which will come into effect in January 2026, and this will be a major step forward for the Gulf major’s real estate sector that should further accelerate buyer activity, while the recently introduced “White Land Tax” incentivises land owners to either sell or develop their plots.
“Riyadh’s five-year rent freeze, announced in September 2025, will make properties more affordable at the same time, but could also reduce landlords’ incentives to maintain their properties or invest in future stock, creating short-term pressure on future developments. It will be important to track how these regulations influence market dynamics in the near term,” said Cavendish Maxwell in its statement.
Heckford concluded, “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.”