Apartments Price in Saudi Arabia 2025: Shocking Market Shifts Revealed

Commercial3 months ago

Saudi Arabia’s real estate sector is experiencing a major transformation. With rapid urban development, new infrastructure projects, and government reforms, property values are moving in new directions. Among the most closely watched aspects is the apartments price in Saudi Arabia, which reflects the balance of demand, supply, and economic growth.

For both local buyers and international investors, understanding how prices are changing is key to making smart property decisions. From Riyadh to Jeddah, and from Dammam to Makkah, the apartment market is showing strong movement in 2025.

In recent years, Saudi Arabia has seen a steady rise in apartment values. This is mainly due to:

  • Strong demand from young professionals and families
  • Government-backed housing initiatives
  • Rising land and construction costs
  • Increased interest from foreign investors

According to property market analysts, apartment prices in Riyadh and Jeddah have shown the highest growth. Riyadh, as the capital, continues to attract businesses and residents, while Jeddah benefits from being the commercial hub and gateway to Makkah.

In 2025, the average apartment price in Saudi Arabia varies depending on the city, location, and project. Luxury apartments in prime districts can command premium prices, while affordable housing units are still in demand across new suburbs.

Riyadh: The Fastest Growing Apartment Market

Riyadh has become the top destination for property investment in Saudi Arabia. With Vision 2030 projects, new business districts, and a growing population, the city has seen continuous upward price movement.

  • Central Riyadh: Premium apartments can reach prices above SAR 1.2 million for mid-sized units.
  • Northern Riyadh: Newly developed areas with modern communities are attracting families, with average prices ranging between SAR 700,000 and SAR 1 million.
  • Affordable zones: Outer areas still offer more budget-friendly apartments, starting from SAR 400,000.

The rise in apartment prices in Riyadh is expected to continue as demand remains strong.

Jeddah: A Blend of Tradition and Modern Living

Jeddah’s apartment market is unique, combining traditional neighborhoods with modern developments. Its location as the main gateway for Hajj and Umrah also influences demand.

  • Prime seafront apartments in Jeddah can cross SAR 1.5 million.
  • Standard mid-city apartments usually range from SAR 500,000 to SAR 900,000.
  • Affordable suburban options are available for less than SAR 400,000.

Demand in Jeddah remains steady due to its strategic role in trade, tourism, and religion. Developers are focusing on building high-rise towers that cater to both local buyers and expatriates.

Dammam and Eastern Province: Rising Demand from Industrial Growth

The Eastern Province, particularly Dammam, Al Khobar, and Dhahran, has seen a rise in apartment demand due to its industrial and oil sector significance.

  • Luxury apartments in Al Khobar can go beyond SAR 1 million.
  • Dammam offers a mix of mid-range options between SAR 400,000 and SAR 800,000.
  • Dhahran, with its business hubs, attracts professionals who prefer modern apartment living.

The steady job market in this region ensures that apartment prices remain on an upward curve.

Makkah and Madinah: Special Real Estate Demand

Religious tourism creates a unique dynamic in Makkah and Madinah. Apartments near the holy mosques are in constant demand from investors and pilgrims.

  • Premium apartments close to the Haram in Makkah can exceed SAR 2 million.
  • Budget-friendly units on the city outskirts are available from SAR 350,000.
  • Madinah also shows similar trends, with rising interest in apartments near the Prophet’s Mosque.

This segment remains one of the most expensive in the country, but also one of the most profitable for investors.

Factors Driving Apartment Prices in Saudi Arabia

Several key factors explain why apartment prices are climbing:

  1. Vision 2030 Projects – The government’s ambitious urban development programs, like NEOM and The Line, are increasing investor confidence.
  2. Population Growth – A young and expanding population continues to drive housing demand.
  3. Expatriate Market – Reforms allowing foreign ownership in selected areas have attracted global buyers.
  4. Rising Construction Costs – Inflation in building materials and labor adds to final property prices.
  5. Government Housing Schemes – Initiatives like Sakani have helped more citizens afford homes, fueling demand.

Impact on Buyers and Investors

For homebuyers, the rise in apartment prices means careful budgeting and a focus on new suburban projects offering affordability. Many families are choosing to move slightly away from city centers to secure better value.

For investors, Saudi Arabia remains a promising market. Apartments in prime locations offer strong rental yields, while long-term appreciation is likely as the economy diversifies beyond oil.

Foreign investors are particularly attracted to projects in Riyadh, Jeddah, and Makkah, as these cities offer high liquidity and strong demand.

Future Outlook: Will Prices Keep Rising?

Experts predict that the apartments price in Saudi Arabia will continue to grow moderately over the next few years. While government efforts aim to balance affordability with demand, the momentum of urbanization and economic diversification ensures steady appreciation.

Key developments to watch include:

  • Completion of mega projects like NEOM and Qiddiya.
  • Expansion of Riyadh as a global business hub.
  • Continued growth of religious tourism in Makkah and Madinah.
  • More affordable housing schemes to support middle-income families.

If demand remains strong, apartments in central areas could see double-digit price growth by 2030, while suburban projects will continue offering affordability.

Final Thoughts

The apartment price in Saudi Arabia reflects the Kingdom’s rapid transformation. From luxury high-rises in Riyadh and Jeddah to affordable housing in new suburban communities, the market offers opportunities for every type of buyer.

While prices are rising, the overall outlook remains positive. Saudi Arabia’s real estate market is stronger than ever, supported by economic reforms, international investment, and national development plans. For buyers and investors, now is a critical time to watch the market closely and make informed decisions.

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