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The town recorded transaction values of SR3.4bn ($906m), a 49 per cent enhance in contrast with the identical interval in 2024.
Transaction volumes additionally climbed by 38 per cent, underscoring each investor confidence and rising demand from end-users.
Saudi housing dominates
Nationwide, housing remained the important thing driver of the actual property market, accounting for round 63 per cent of the SR123.8bn ($32.96bn) complete transaction worth throughout H1 2025.
Residential transaction numbers rose by 7 per cent year-on-year to almost 93,700, with a complete worth of SR77.5bn ($20.6bn).
This momentum was supported by elevated mortgage exercise, authorities schemes, and new housing supply in main cities.
Faisal Durrani, Companion – Head of Analysis, MENA, Knight Frank, mentioned: “Some of the vital legislative developments this yr has been the approval of the brand new Legislation of Actual Property Possession by Non-Saudis.
“Set to come back into impact in January 2026, this new possession framework, coupled with accelerating residential deliveries and mortgage market reforms, is anticipated to deepen market liquidity and enhance investor sentiment.
“This comes at a time when key markets like Riyadh are beginning to stabilise as we method the federal government’s 70 per cent house possession goal and excessive home costs subdue demand to an extent.”
Riyadh market rebalances
After years of progress, Riyadh entered a recalibration section in H1 2025. Transaction volumes fell 31 per cent year-on-year, with values easing 20 per cent to SR29bn ($7.71bn).
Regardless of the decline, costs continued to climb. Common house costs in Riyadh rose 10.6 per cent in Q2 2025 to SR 6,175 ($1,642) psm, with districts close to the brand new Riyadh Metro exhibiting the strongest positive factors.
Al Taawun recorded a 32 per cent rise to SR9,470 ($2,518) psm, whereas King Abdullah District values rose 17 per cent to SR 7,656 ($2,035) psm.
Villa costs additionally superior, averaging SR5,470 ($1,456) psm, up 8.2 per cent year-on-year. Northern Riyadh remained the most costly space for villas, at SR 8,660 ($2,306) psm.
Harmen De Jong, Regional Companion – Head of Consulting, MENA, Knight Frank, mentioned: “Riyadh stays one of many Kingdom’s most dynamic markets, supported by ongoing Imaginative and prescient 2030 initiatives and main infrastructure funding.
“The implementation of the international possession legislation subsequent yr will energise the market by boosting liquidity and enhancing the standard of developments. Collectively, these elements point out that Riyadh’s present market adjustment is a part of a broader and more healthy evolution, positioning town for extra diversified and sustainable long-term progress.”
Jeddah positive factors momentum
In distinction, Jeddah continued to broaden. Transaction volumes rose 19 per cent, whereas complete values jumped 28 per cent to SR17.3bn ($4.6bn).
Common house costs climbed 2.7 per cent to SR4,324 ($1,150) psm, with central and western districts exhibiting the strongest progress.
Villas rose 3.2 per cent to SR5,040 ($1,341) psm, led by northern districts.
Built-in, master-planned communities resembling Roshn’s Al-Arous are attracting demand for his or her way of life focus and concrete design, significantly in coastal areas.
Holy cities’ demand rising
In H1 2025, Madinah transaction values rose 49 per cent to SR3.4bn ($906m), with deal volumes up 38 per cent. Residence costs grew 2.5 per cent to SR 3,835 ($1,020) psm, whereas villa costs dipped barely to SR3,500 ($933) psm.
In Makkah, transaction values declined 33 per cent, however deal numbers elevated 11 per cent, pointing to a shift towards smaller, extra reasonably priced models.
Common house costs eased 0.5 per cent to SR 3,650 ($973) psm, whereas villa costs inched up 0.4 per cent to SR3,420 ($913) psm.
Amar Hussain, Affiliate Companion – Analysis, Knight Frank, mentioned: “Giant-scale government-backed initiatives are reworking the city material of Makkah and Madinah. In Makkah, the Masar Vacation spot is creating new corridors and mixed-use zones that combine residential, business and cultural areas near the Haram.
“And in Madinah, the Rua Al Madinah venture will introduce new resorts, cultural landmarks and enhanced transit connectivity. These developments will elevate the cities’ city expertise, strengthening their attraction to each residents and visiting pilgrims whereas supporting the federal government’s broader tourism and financial growth objectives.”
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