Dammam emerges as an investment hotspot with a 60% year-on-year sales increase as new regulations aim to shape the market’s future.
RIYADH – Saudi Arabia’s residential real estate market experienced a significant quarterly rebound in the third quarter of 2025, driven by strong performance in the capital and a surge of activity in the Eastern Province, new data shows.
A report from advisory firm Cavendish Maxwell revealed that residential sales transactions in Riyadh rose by 19% quarter-on-quarter to 13,000, with sales values climbing to SR17.6 billion ($4.69 billion). This growth comes despite a 44% year-on-year decline in the capital’s sales volumes, attributed to affordability pressures following rapid price appreciation in 2024.
“In Jeddah, price conditions have stabilized… Meanwhile, Dammam, where property is more affordable, is emerging as a new hot spot for property investment,” said Sean Heckford, Director of Built Asset Consulting at Cavendish Maxwell.
The eastern city of Dammam recorded its strongest sales performance in years, with transactions jumping nearly 60% year-on-year and 37% quarter-on-quarter to 3,000, valued at SR3.2 billion. Jeddah saw a more modest 10% quarterly rise to 7,500 transactions.
Price Trends and Regulatory Impact
Riyadh led price growth, with apartment and villa prices rising 7.5% and 10.1% year-on-year respectively. The government’s recent five-year rent freeze in the capital aims to address affordability concerns.
The market is poised for further transformation with new regulations, including a foreign ownership law effective January 2026 and the White Land Tax, both designed to stimulate development and investment.
“Vision 2030 initiatives and infrastructure investments will be pivotal in sustaining momentum and unlocking new investment opportunities,” added Heckford.
With 57,000 new units planned for Riyadh in 2026-27 and a projected national market value of $101.62 billion by 2029, Saudi Arabia’s property sector remains a central pillar of the Kingdom’s economic diversification agenda.
