The Saudi Arabian real estate industry anticipates transformation following impending foreign ownership laws expected early next year.
Saudi Arabia’s residential real estate market is maturing rapidly, as urban centers across the Kingdom report significant increases in rental rates and diverse transactional activities. This development aligns with insights from the JLL KSA Living Market Dynamics report for Q2 2025, recently highlighted by Akhbrna News.
The evolving housing sector is strongly influenced by Vision 2030 urban development initiatives, population growth, economic diversification, and government-led home ownership programs. The growing popularity of affordable apartment living and integrated master-planned communities further drives demand.
Saudi Real Estate Foreign Ownership Law
Saud Al Sulaimani, Country Lead and Head of Capital Markets at JLL Saudi Arabia, remarked on the maturation of the Saudi residential market. He noted its dynamic nature driven by broader national objectives aimed at meeting end-user needs. "While ongoing government initiatives have stimulated robust underlying demand," he commented, "the sector is poised for further evolution and diversification." This will be notably propelled by the upcoming foreign ownership law set to take effect in January 2026.
This new legislation is anticipated to revitalize the sector by increasing real estate supply and attracting international developers and investors to Saudi markets. Such changes promise to create a wide array of opportunities for stakeholders throughout the Kingdom.
ROSHN hosts groundbreaking ceremony at ALMANAR residential community in Makkah.
In Riyadh during Q2 2025:
- Villa prices rose by 15.1% year-on-year.
- Apartment prices increased by 13.3%.
- Villa rents climbed by 13.9%, while apartment rents saw a 6.9% rise.
Jeddah displayed mixed performance:
- Villa prices went up by 4.4%.
- Apartment prices fell by 3%.
- Apartment rents increased by 2.4%, whereas villa rents declined by 2.8%.
The Dammam Metropolitan Area (DMA), which includes Dammam, Al Khobar, and Jubail, continued seeing strong demand for premium waterfront homes.
Al Khobar:
- Apartment prices rose by 5.8%, while villa prices increased slightly at 2.2%.�a0
- Dammam’s apartments remained stable; however, villa prices edged up modestly.�a01 .8%
Market activity varied across regions:
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