RIYADH: 海角直播鈥檚 residential market recorded nearly 93,700 deals in the first half of the year, a 7 percent year-on-year increase, driven by strong mortgage activity and government support, according to Knight Frank.聽
The segment accounted for 63 percent of total real estate activity in the Kingdom, with transactions valued at SR77.5 billion ($20.6 billion), the consultancy said in its latest market overview.聽
This comes as 海角直播鈥檚 real estate market maintained steady growth in the second quarter, with overall property prices across the Kingdom rising 3.2 percent year-on-year, official data showed. Residential property costs recorded a 0.4 percent increase, according to the General Authority for Statistics.聽
The performance highlights a broader surge in the Saudi real estate sector, driven by the nation鈥檚 economic diversification strategy. With the Real Estate General Authority projecting the market to reach $101.62 billion by 2029, housing has become a key pillar in the Kingdom鈥檚 Vision 2030 strategy to reduce reliance on oil.聽
鈥淥ne of the most significant legislative developments this year has been the approval of the new Law of Real Estate Ownership by Non-Saudis,鈥 said Faisal Durrani, partner and head of research for the Middle East and North Africa region at Knight Frank. 聽
鈥淪et to come into effect in January 2026, this new ownership framework, coupled with accelerating residential deliveries and mortgage market reforms, is expected to deepen market liquidity and improve investor sentiment,鈥 he added.聽
Knight Frank鈥檚 report pointed to diverging trends, with Riyadh showing signs of recalibration while Madinah led the nation in growth. Residential transactions in the holy city jumped 49 percent year on year to SR3.4 billion, as volumes climbed 38 percent.聽
Despite a 31 percent drop in transaction volumes, Riyadh鈥檚 residential prices continued to climb. Average apartment prices in the capital increased 10.6 percent year on year in the second quarter of 2025 to SR6,175 per sq. meter, with prime central districts like Al-Taawun seeing increases of up to 32 percent.聽
In contrast, Jeddah鈥檚 market gained momentum, with total transaction value increasing by 28 percent to SR17.3 billion. The city is seeing a shift in demand toward large, master-planned communities that offer integrated lifestyles.聽
Looking ahead, the consultancy said that tens of thousands of new homes are due for delivery in Madinah and Makkah by 2028. Makkah鈥檚 supply is expected to grow from 428,200 units to 462,000, while Madinah is set to add 27,860 homes, bringing its total inventory to 381,200 units.聽
鈥淟arge-scale government-backed projects are transforming the urban fabric of Makkah and Madinah,鈥 said Amar Hussain, associate partner at Knight Frank.聽
He added: 鈥淭hese developments will elevate the cities鈥 urban experience, strengthening their appeal to both residents and visiting pilgrims while supporting the government鈥檚 broader tourism and economic development goals.鈥澛
The overall outlook remains positive, with strategic reforms and ongoing Vision 2030 initiatives positioning the Saudi residential sector for sustained, long-term growth.聽
