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Riyadh Leads Saudi Real Estate Boom with 52% Rise in Home Sales
Posted on October 30, 2024 |
Riyadh is on top of the Saudi real estate boom, with home sales witnessing an impressive 52% leap in the past year (2023). The transactions total 18,500 sales worth an enormous SR26.6 billion or $7.08 billion, which speaks for itself about the rapid expansion the city is witnessing along with the overall growth in the housing market in the Kingdom of Saudi Arabia. Riyadh will continue to boom and blossom with increasing population demands coupled with significant government investments driving the momentum.
Read more and get to know about the driving forces behind Riyadh's residential market and what might await Saudi Arabia's real estate sector.
Snapshot: Saudi Arabia’s Real Estate Landscape in Key Cities
- Jeddah's Real Estate Surge
- Transaction volumes in Jeddah jumped by 43.2% year-on-year, with 9,392 sales recorded.
- Dammam Metropolitan Area also saw growth, with a 22.4% rise in transactions, totalling 2,390 sales worth SR2.4 billion.
- Vision 2030: Boosting Home Ownership
- Saudi Arabia aims to achieve a 70% homeownership rate by 2030.
- The Sakani program was introduced to help families by providing tailored housing start and financing solutions.
- Rental Market Trends in Riyadh and Jeddah
- Riyadh’s residential rental transactions rose 6.1% in H1 2024, reaching 274,146.
- In contrast, Jeddah experienced a 2.3% decline in rentals, totalling 183,894 transactions.
- Price Trends for Apartments and Villas
- Riyadh: Average apartment prices rose by 11.7% annually, now at SR5,000 per sq. metre (as of Q2 2024).
- Jeddah: Apartment prices saw a slight dip of 0.9% in Q2 2024, now at SR3,945 per sq. metre. Villa prices grew at a compound annual rate of 4.4%, reaching SR5,707 per sq. metre.
- Challenges in Financing Options
- Despite government efforts to improve financing options, a portion of the population is still in search of ideal mortgage solutions to support home acquisition.
- Despite government efforts to improve financing options, a portion of the population is still in search of ideal mortgage solutions to support home acquisition.
Saudi Arabia's Most Expensive Real Estate Districts
- Top Villa Districts in Riyadh
Hittin and Al-Malqa lead as Riyadh’s priciest villa districts, with rates from SR9,500 to SR13,500 per square metre. Al-Malqa also ranks highly with villa prices between SR8,000 and SR12,900 per square metre.
- Popular Apartment Districts in Riyadh
As-Sulimaniyah, Al-Taawun, and An Nakheel are Riyadh’s most desirable areas for apartments. Average prices in As-Sulimaniyah range from SR6,600 to SR10,500 per square metre, while An Nakheel offers rates from SR7,200 to SR10,300 per square metre.
- Premium Villa Districts in Jeddah
Ash Shati and Al-Murjan lead Jeddah's market with villa prices ranging from SR7,500 to SR13,350 per square metre, while Al-Amir Fawwaz provides more affordable options starting at SR2,300 per square metre.
- Red Sea Luxury Residences
Obhur Al-Junobiyah along the Red Sea is renowned for its branded residences, with values ranging between SR4,700 and SR7,400 per square metre.
Conclusion
Investments are ongoing in the above cities, with Riyadh and Jeddah seeing a continuous population demand thus making the real estate sector constantly booming in the Dammam Metropolitan Area. Growth has been sustained, thus supporting the significance of the real estate market further validating its crucial role in the long-term economic diversification of Saudi Arabia's aim through Vision 2030. As the cities come on, the real estate market of the Kingdom will always be a long-run supporter of economic transformation and prosperity.
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