A “metro premium” is lifting villa prices in Riyadh, according to a Knight FrankWhitepaper (pdf). The study, comparing data from 2Q 2023 and 2Q 2025, found that homes within a 15-minute walk of metro stations in Tuwaiq, Al Yarmuk, and Al Malqa are commanding higher prices than those located farther away in the same districts.

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Al Yarmuk led the price surge, where villa prices near stations increased 78%, compared to 22% growth in more peripheral areas. In Tuwaiq, home prices near the metro rose 20%, twice the pace of those further out. However, the metro’s effect was more muted in the established district of Al Malqa, where prices near stations climbed 20% — six percentage points lower than properties farther away. Across the capital, average residential villa prices increased 44% over the same period.

Proximity now carries a measurable premium: Each additional 100 m from the nearest station lowers residential values by around SAR 19 per sqm. That means two identical 250 sqm apartments just 500 meters apart in proximity would see the farther one priced about SAR 24k lower.

IN CONTEXT- The six-line, 85-station network was delivered last year and has already transported over 100 mn passengers in its first nine months of operation. Knight Frank estimates that around 1.5 mn residents — roughly 18% of Riyadh’s population — live within a 15-minute walking distance of a metro station. This level of accessibility is rarely seen in new systems, surpassing Dubai’s 13%.

The premiums could expand further as new lines come online, including the planned Line 7 — an USD 8 bn, 65-km corridor with 19 stations set to link Qiddiya, King Salman Park, Diriyah Gate, New Murabba, and King Khalid International Airport. Line 2 will also be extended westward to Diriyah.

International trends mirror Riyadh’s experience: Cities like London, Dubai, and Istanbul have long seen a “transit premium,” where proximity to mass-transit systems consistently boosts property values. In London, the Elizabeth Line (Crossrail) drove up nearby home prices by an average of 7% between 2008 and 2016, with premiums reaching as high as 40% in central neighborhoods. Similar uplifts have been observed along Dubai’s metro corridor and in Istanbul.

BUT- Unlocking the metro’s full potential depends on seamless connectivity: The report notes that the metro’s long-term success will rely on integrating transit-oriented development around stations and strengthening last-mile links. This includes boosting pedestrian traffic to support retail, spurring new residential projects, and driving demand for transit-accessible neighborhoods. The metro cannot function in isolation, as it must be complemented by reliable feeder buses and improved pedestrian networks to pave the way for new developments in previously remote areas, the consultancy said.

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