Riyadh Residential Sales 2025 Hit SAR17.6 Billion in Q3
Riyadh residential sales 2025 reached SAR17.6 billion (US$4.69 billion) in the third quarter as the capital prepares to deliver 57,000 new residential units in 2026 and 2027, according to new research from real estate consultancy Cavendish Maxwell released today.
Residential sales transactions in Riyadh reached 13,000 between July and September 2025, up nearly 19% on the previous quarter. The city delivered 10,000 new units in the first nine months of the year, with another 6,000 expected during the fourth quarter.
Key Takeaways
- Riyadh residential sales hit SAR17.6 billion in Q3 2025, up 19% quarter-on-quarter
- 57,000 new units in Riyadh’s development pipeline for 2026-2027 delivery
- Dammam records 60% year-on-year growth with 3,000 transactions
- Apartment prices in Riyadh rise 7.5% annually, villas up 10.1%
- New foreign ownership law takes effect January 2026
Riyadh Residential Sales 2025 Show Strong Quarterly Growth
Riyadh demonstrated robust quarterly momentum in real estate activity, with transaction volumes increasing 19% in Q3 compared to Q2 2025. Sales values reached SAR17.6 billion, reflecting continued strong demand for residential properties in the capital.
However, Riyadh residential sales 2025 showed a year-on-year decline of 44% compared to Q3 2024. According to the report, this decrease stems primarily from affordability pressures resulting from rapid price appreciation throughout 2024.
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.”
Dammam Emerges as Growth Hotspot
Dammam, making its debut in Cavendish Maxwell’s KSA market reports, recorded sales at their highest levels for several years. The Eastern Province city registered 3,000 transactions in Q3 2025, up nearly 60% year-on-year and 37% quarter-on-quarter.
Sales values in Dammam reached SAR3.2 billion (US$850 million) during the quarter. The city’s more affordable price points are attracting both end-users and investors, according to [[internal:saudi-real-estate-trends|market analysts]].
Jeddah also witnessed a boost in quarterly sales, with transactions rising 10% to 7,500 and sales values reaching SAR8.7 billion (US$2.31 billion), a 9% increase compared to Q2. However, Jeddah recorded a 19% year-on-year decline in transactions.
Sales and Rental Prices Rise Across Major Cities
The largest increases in sales prices occurred in Riyadh, where apartment prices rose to an average SAR6,160 (US$1,642) per square metre in Q3, up 7.5% year-on-year. Villa prices in the capital reached SAR5,500 (US$1,466) per square metre, up 10.1%.
In Jeddah, apartment prices increased 1.6% to SAR4,360 (US$1,162) per square metre, while villa costs rose 3.1% to reach SAR5,140 (US$1,370) per square metre. Dammam apartment prices climbed 5.8% year-on-year, and villas by 3.2%.
Riyadh also commanded the highest rental rate increases, with apartments up 11.8% year-on-year and villas by 10.7%. Jeddah apartment rents jumped 5.6% year-on-year, but villa rents saw a slight decline of 2.1%. In Dammam, apartment rents rose 4.8%, with villa rents increasing 2.2%.
New Supply Pipeline Targets Affordability
Combined, the three cities delivered 13,500 new homes in the first nine months of the year. Total 2025 deliveries are expected to reach 22,800 by year-end, according to Cavendish Maxwell]].
By the end of 2025, Riyadh will have brought 16,000 new homes to market, compared to 5,000 in Jeddah and 1,800 in Dammam. Riyadh has 57,000 new units in the pipeline for 2026 and 2027, with 36,000 expected in Jeddah and 12,000 in Dammam.
The substantial pipeline aims to address affordability challenges that have constrained year-on-year transaction volumes in both Riyadh and Jeddah.
New Laws Expected to Boost Demand
New laws and tax reforms are likely to boost real estate demand and development in 2026 and beyond. The new foreign ownership law, which takes effect in January 2026, represents a major step forward for Saudi Arabia’s real estate sector and is expected to accelerate buyer activity.
The recently introduced White Land Tax incentivizes land owners to either sell or develop their plots rather than leaving them vacant. Meanwhile, Riyadh’s five-year rent freeze, announced in September, aims to improve affordability but could reduce landlords’ incentives to maintain properties or invest in future stock.
What’s Next
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, while Dammam stands out as a growth hotspot driven by affordability and investor interest. [[internal:vision-2030-real-estate|Vision 2030 initiatives]] and infrastructure investments are expected to sustain momentum and unlock new investment opportunities across all major Saudi cities.
The 105,000 residential units expected for delivery across the three cities during 2026 and 2027 should help ease price pressures and improve supply-demand balance in the Saudi property market.
