Riyadh Real Estate

Investment Real Estate Analysis 2026: Jeddah & Riyadh

Next year, in 2026, we will formally open our Riyadh office, after becoming one of the most successful agencies in Saudi Arabia in 2025. 

Jeddah and Riyadh dominate the Saudi market, so we decided to take a look at the regions from a numbers perspective and compare the two.

Both are underpinned by the legal reforms of the real-estate landscape, with Freehold ownership coming into full effect in January 2026. This represents a fantastic opportunity to get ahead of the real-estate investment curve as the Kingdom targets over $100bn of foreign real estate investment by 2030.

Jeddah

Jeddah, known as Saudi Arabia’s Red Sea lifestyle hub, has a warm family feel, but, geographically and commercially, acts as the Western gateway. Jeddah perfectly combines robust international trade access, heritage and luxury coastal living. It is fast becoming a leading global destination for tourism, business and real-estate investment.

For many years, the Red Sea coast has served as a direct trade link to major global trade routes. Over more recent years, the Red Sea shoreline has become Saudi Arabia’s home for marine leisure and luxury tourism. Locally, you have UNESCO-listed districts such as Al-Balad, which perfectly blend the exceptional cultural heritage with the modern redevelopment.

Jeddah’s residential real-estate market excelled in 2025; transaction volumes increased noticeably (Transaction Volumes were up over 24% YOY), and total transaction value rose. 

In Q2 2025, the average apartment price in Jeddah reached SAR 4,324/m² (with variation by district), and villa prices were around SAR 5,040/m² – lower than in Riyadh. 

Demand is increasingly concentrated on lifestyle-oriented developments (waterfront, gated communities, master-planned compounds) rather than generic inner-city apartments. This is what we see as an advisory: The Fairmont, Trump Tower Jeddah, and Rixos have brought International brands to the region, and locals and international investors alike are seeing these premium, freehold opportunities. 

In Q1 2026, we will be launching Trump Plaza, a $1bn mixed-use development, which will see the level rise again in the region. This will coincide with the launch of Royal Atlantis (the first outside Dubai), which will again drive up investment sentiment and the region’s stature.

The commercial/office real-estate market is also seeing some gains, though lender reports flag that rising supply (in the coming years) may exert pressure. If you are investing commercially, we would suggest focusing on prominent, central locations close to freehold designation to maximise international company presence.

Riyadh

Riyadh is the Capital Magnet, transforming Saudi Arabia into an international destination, driven by Vision 2030. Riyadh, home to the business EXPO in 2030, is one of the most dynamic and engaging investment destinations anywhere in the world. 

Riyadh contributes nearly half of Saudi Arabia’s non-oil GDP, and its population is projected to exceed 9.5 million by 2030. Riyadh is undergoing an ultra-extensive urban expansion, with major master plans and business districts dominating the landscape, as demand for residential communities and mixed-use developments hits never-before-seen highs.

Commercial space in Riyadh in 2025 reached 98% occupancy, with rents rising 15% YOY. Many blue-chip firms have already signed pre-lease agreements in new developments backed by $1.55 trillion in potential long-term investments, along with major reforms such as the expanded white land tax and a five-year rent freeze. 

Strengthening the property market is central to Vision 2030, as the Kingdom works to position itself as a global business and tourism hub. The Real Estate General Authority forecasts the sector will reach $101.6 billion by 2029, expanding at an 8% compound annual growth rate from 2024. 

The King Abdullah Financial District remains at the center of Riyadh’s real estate expansion, with plans to double its footprint and accommodate 40,000 daily visitors. Infrastructure upgrades, including the 3.6km monorail, will be aligned with all new-build projects across the region, to make Riyadh a ’10-minute city’.

The numbers are firm: H1 2025 saw property sales surge by 63% year-on-year, with an additional $17.5bn in revenue. Average apartment prices reached SAR 6,100/m² and villas SAR 5,396/m² in June 2025.

Residential rental rates are rising sharply, apartment rents rose 10.3% and villa rents rose 14.4% in the same period. 

Riyadh currently lacks comprehensive freehold options that would cater to the broader Western and Eastern world. DAR Global, in partnership with PIF fund and DAR Al Alkan, have timelines in 2026 to transform the real-estate landscape with extensive Golf-course Villa masterplans, the extension of Roshn and then Luxury skyscrapers in the King Abdullah Financial District.

Retail in Riyadh is big business. Saudi Arabia’s retail pipeline includes 800,000 sq. meters of new space, with 100,000 sq. meters due by year-end. Significant developments such as Westfield Riyadh, Bellevue Riyadh, and Avenues Mall are scheduled for completion between 2026 and 2027. 

Purchasing In Saudi Arabia

Purchasing in Saudi Arabia is very similar to that in the UAE. All off-plan projects and registrations are secured and covered by WAFI, Saudi Arabia’s equivalent of RERA, which the Ministry of Municipal and Rural Affairs & Housing manages.

All off-plan projects must receive payments into secure Escrow Accounts, and the payment plans are construction-linked to protect investors and give WAFI complete transparency on the progress of projects in the region.

Land Registration is 5%, payable on handover; there are no commissions or additional fees. 

You pay a reservation/token fee of 50k SAR, which is then deducted from the down payment, typically 20%.

Properties can be purchased in personal or company names.

2026 and Beyond

As with any Off-Plan project, we work on projects that sit around 30/40% lower than the value they would be if the project were ready. 

In the ready market, experts forecast continued price appreciation in Riyadh: some suggest 5–6% annual growth in apartments/villas through 2030, underpinned by sustained demand and limited supply. 

For Jeddah, forecasts are more modest but still positive: projected apartment price growth of 3–5% and villa growth of 2–4% (with slightly higher potential in lifestyle/coastal segments) for 2025–2030.

For rental yields, some market commentary expects 2026 yields on prime Jeddah coastal/apartment assets to remain competitive (e.g., 6–8%), especially for high-quality, well-amenitised properties.

The numbers are all positive in the immediate build term of projects, so positive market appreciation, combined with build appreciation and luxury product investors, should put them in a powerful position over the immediate, medium, and long term.

Discover our range of Saudi Arabia Property Investments here. This list will continue to grow and expand over the coming years.

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