The Kingdom’s residential market showed increased maturity in 2Q 2025, with Riyadh in the lead, according to JLL ‘s KSA Living Market Dynamics 2Q 2025 report. The capital posted a double-digit growth in sales prices, with villas soaring 15.1% y-o-y and apartment prices increasing 13.3% y-o-y. The rental market also followed suit, as villa rents climbed by 13.9% and apartment rents rose by 6.9%, while the total sales volume witnessed a slight 1.5% decline in transactions.

On the contrary, Jeddah and the Dammam Metropolitan Area reported weak performance in 2Q. Jeddah’s villa prices increased 4.4%, while apartment prices dipped 3%. Meanwhile, villa rentals slipped 2.8%, while apartment rentals increased by 2.4%. Residential transactions volume climbed 46.1% y-o-y to 1.1k contracts, indicating a highly active market in Jeddah.

On the other side of Dammam, prices in Al Khobar jumped annually by 2.2% in villas and by 5.8% in apartments. Apartment prices remained stable as a result of the sufficient supply in Dammam city, while villa prices saw a 1.8% rise. Annual sales transaction volumes diverged, with Al Khobar surging 23.7% y-o-y, while Dammam retreated 6.7%, driven primarily by apartment sales in both cities.

How supply fared: Riyadh’s housing supply reached about 2.2 mn units, following the delivery of 5.6k units in 1H 2025, with nearly 19k units expected by year-end. Jeddah’s supply grew to over 1.2 mn, with 8.6k more units set to be delivered before 2026 begins.

Drivers: The increasing maturity is driven by Vision 2030 projects and a shift towards affordable apartments. The foreign ownership law, set to be implemented starting next January 2026, is also expected to attract international developers and investors, Country Lead and Head of Capital Markets at JLL Saudi Arabia Saud Al Sulaiman, said.

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