Home Sales Surge in Saudi Arabia

The Saudi Arabian real estate market experienced robust growth in the first half of 2025, with residential deals reaching SR77.5 billion, a 7% year-on-year increase. Madinah led the way with a 49% surge in residential deals, totaling SR3.4 billion. This growth is fueled by increased mortgage activity, government support, and new housing developments in key urban areas. The residential sector accounted for 63% of the total transaction value of SR123.8 billion.

A significant development is the upcoming implementation of new laws in 2026, allowing foreign investors to purchase property in Saudi Arabia. This is expected to attract international demand, particularly from high-net-worth individuals. Experts anticipate a surge in demand and potential joint ventures. This change is happening as the government aims for 70% homeownership, while markets like Riyadh are starting to stabilize.

Riyadh's property market shows resilience, with average apartment prices rising 10.6% in Q2-2025 to SR6,175 per square meter. Areas with improved transit access, like those near the Riyadh Metro, saw significant price increases. Even in budget-sensitive areas, prices edged up, reflecting sustained interest from first-time buyers. The new foreign ownership law is expected to boost liquidity and enhance development quality, positioning Riyadh for sustainable long-term growth.