Real estate sales volumes in Riyadh rose 51.6% y-o-y to 18.5k valued at SAR 26.6 bn in the 12 months to 2Q 2024, according to a report (pdf) by real estate consultancy CBRE. The report indicates that increased migration to the capital city for new job opportunities is likely to sustain price growth in Riyadh over the medium-term. Additionally, population growth is expected to further drive market gains.

Over in Jeddah + Dammam: Jeddah saw 9.4k transactions over the same period — a 43.2% y-o-y uptick — while sales in Dammam were up 22.4% y-o-y at 2.4k, valued at SAR 2.4 bn.

Future growth prospects: Some potential buyers in the market are waiting for “new modern stock, which is expected to bring higher quality finished units to the market as compared to the existing often aging stock,” while others are holding off on purchases until they find “suitable mortgage provisions to facilitate their home acquisition,” according to CBRE.

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Riyadh saw higher sales prices: The purchasing price of apartments in Riyadh is currently averaging at around SAR 5k per sqm— a 6.6% y-o-y uptick in the year to 2Q — while that of villas came in at an average of SAR 5.8k per sqm — a 3.3% y-o-y increase as at 2Q. Prices in Riyadh have been on an uptrend since the covid19 pandemic.

Meanwhile, apartment prices in Jeddah dipped 0.9% to SAR 3.9k per sqm over the same period, while average villa prices rose 0.8% to SAR 5.7k per sqm.

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