Image: Getty Images
Residential sales values in Riyadh reached SAR17.6bn ($4.69bn) in Q3 2025, as Saudi Arabia’s capital prepares to deliver 57,000 new housing units across 2026 and 2027, according to new research from Cavendish Maxwell.
Residential transactions in Riyadh totalled 13,000 between July and September, marking a near 19 per cent increase quarter-on-quarter. Around 10,000 new homes were delivered in the city during the first nine months of the year, with a further 6,000 units expected in the final quarter.
Dammam, included for the first time in Cavendish Maxwell’s latest Saudi Arabia residential market report, recorded its strongest sales performance in several years. Transactions reached 3,000 in Q3 2025, up almost 60 per cent year-on-year and 37 per cent compared to Q2, with sales values hitting SAR3.2bn ($850m).
Jeddah also saw an improvement in quarterly activity, with transactions rising 10 per cent to 7,500 and sales values increasing 9 per cent quarter-on-quarter to SAR8.7bn ($2.31bn).
Despite quarterly growth across all three cities, year-on-year sales volumes declined in Riyadh and Jeddah, reflecting mounting affordability pressures. Transactions were down 44 per cent in Riyadh and 19 per cent in Jeddah compared to the same period last year.
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.”
Read: From Riyadh to Red Sea: How Cityscape Global 2025 is reshaping urban living
The report shows that apartment and villa prices rose across Riyadh, Jeddah and Dammam during Q3, with the strongest increases recorded in the capital. Rental rates for apartments increased in all three cities, while villa rents rose in Riyadh and Dammam but edged lower in Jeddah.
By the end of 2025, a total of 22,800 new residential units are expected to be delivered across the three cities, with a further 105,000 homes scheduled for completion in 2026 and 2027. Riyadh is set to account for the largest share, with 57,000 units in the pipeline, followed by Jeddah with 36,000 and Dammam with 12,000.
Cavendish Maxwell noted that regulatory reforms are likely to shape market dynamics in the coming years. The new foreign ownership law, due to take effect in January 2026, is expected to stimulate buyer demand, while the recently introduced White Land Tax is designed to encourage land development and increase housing supply.
Heckford added: “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.”
Download the full Cavendish Maxwell KSA Q3 2025 report here.
