Market research & Development
Saudi Arabia’s real estate market isn’t just growing—it’s exploding. In the first quarter of 2025 alone, transactions hit SAR 109 billion ($29 billion), according to industry experts cited by Arabian Business. The catalyst? The Premium Residency program, a Vision 2030 initiative that’s pulling foreign investors into the Kingdom like never before. This isn’t a fluke. It’s a calculated shift, turning desert skylines into goldmines and redefining luxury living from Riyadh to the Red Sea. Here’s why this boom matters, what’s driving it, and where the smart money’s headed next.
A $29 Billion Start to 2025
Let’s cut to the chase. The Saudi property market is on fire, with $29 billion in deals logged by April 2025.
That’s not pocket change; it’s a 37% jump in transaction volume from 2024, when Knight Frank’s Saudi Report 2025 pegged the year at 236,690 deals. Riyadh and Jeddah are leading the charge, with residential sales prices up 10% and 5% year-on-year, respectively, per JLL’s KSA Market Dynamics Report H1 2024. Rental yields? Try 9% in Riyadh and 4% in Jeddah. This isn’t a bubble—it’s a market flexing its muscle.
What’s fueling this? The Premium Residency program, launched to lure high-net-worth expats, is a game-changer. It offers long-term visas tied to property investment, and foreigners are biting. Add Vision 2030’s $1.06 trillion in planned projects (noted by Cityscape Global), and you’ve got a recipe for a market that’s not just hot—it’s molten.
The Visa That’s Rewriting the Rules
Forget the old days when foreign ownership was a pipe dream in Saudi Arabia. The Premium Residency program—details on the official Vision 2030 site—lets expats buy into the market with perks like no sponsor requirements and family residency. Posts on X highlight its pull: @suehutton called it a “record foreign investment driver.” In 2024, yields hit 6.75%-8.75%, per Cityscape Global, making Saudi Arabia a global standout. Now, in 2025, it’s turbocharging luxury demand.
Riyadh’s villa prices are up 3.3% year-on-year to SAR 5,824 per square meter, per CBRE’s Q2 2024 Market Review. Apartments? A 6.6% jump to SAR 4,971 per square meter. Foreign buyers aren’t just here for homes—they’re after prestige. Think golf-front estates near The Red Sea Project or penthouses overlooking NEOM’s futuristic grid at NEOM. This isn’t about flipping houses; it’s about owning a piece of the future.
Where the Big Players Tee Off
Speaking of prestige, luxury properties are the market’s crown jewels. Take the golf angle—Saudi Arabia’s hosting global events like the LIV Golf series, and resorts like The Red Sea Project are betting big on it. These aren’t your average courses. They’re cliffside masterpieces with infinity pools and private helipads, pulling in buyers who’d drop $4,800 a day at Fiji’s Laucala Island without blinking (see our Top 10 Most Expensive Golf Resorts list). Now, they’re eyeing Saudi’s coastline.
Riyadh’s luxury stock grew by 16,200 units in H1 2024, hitting 1.5 million total, per JLL. Jeddah added 11,300, reaching 891,000. S&P Global Ratings notes a 10% price hike for Riyadh’s upscale units, driven by expats and locals chasing smart homes and wellness features—think remote-work suites and private gyms. Travel + Leisure ranks these cities as emerging luxury hubs, and the data backs it: 51.6% more sales in Riyadh Q2 2024, per CBRE.
The $1 Trillion Blueprint
None of this happens without Vision 2030. The Kingdom’s $1.06 trillion project pipeline—tracked by Cityscape Global—is reshaping the market. NEOM’s $500 billion futuristic city is a magnet for luxury investors. The Red Sea Project’s eco-tourism push promises 150 million visitors by 2030, per JLL, spiking demand for hospitality and residential properties. Qiddiya’s entertainment hub and Diriyah Gate’s cultural overhaul? They’re not just developments—they’re ecosystems driving property values skyward.
The government’s not messing around. Tax incentives, streamlined permits, and foreign ownership reforms via the Saudi Arabian General Investment Authority have slashed red tape. Result? A market where 60% of Middle East project value sits in Saudi Arabia, per Cityscape Global. That’s power, not promises.
Riyadh vs. Jeddah
Riyadh’s the capital kingpin—population set to hit 17 million by 2030, per Mordor Intelligence. Its 2025 transaction value? SAR 26.6 billion, up 51.6% from 2024, per CBRE. Luxury villas and apartments dominate, with Grade A office rents up 19% to SAR 2,090 per square meter. Jeddah’s no slouch—9,392 residential deals in Q2 2024, a 43.2% jump, per CBRE. Villa prices nudged up 0.8% to SAR 5,707 per square meter, and its port expansions boost trade appeal.
Which wins? Depends on your play. Riyadh’s urban sprawl suits scale; Jeddah’s coastal vibe screams lifestyle. Both are cashing in on the Premium Residency wave—choose based on your endgame.
High Stakes, High Rewards
It’s not all smooth fairways. Land costs, construction bottlenecks, and financing competition from Vision 2030 projects are real, per S&P Global. Riyadh’s short 16,000 units in H2 2024; supply’s tight. Yet, demand’s relentless—3.3% population growth through 2027, per S&P, keeps the pressure on. The Real Estate Transaction Tax Law, effective April 9, 2025 (via Global Property Guide), caps late penalties at 50% and clarifies exemptions, easing investor nerves.
Risk? Sure. Reward? Massive. The market’s resilience—4.3% non-oil growth in 2024, per IMF—shows it can take a punch.
Where to Put Your Money in 2025
Luxury’s the play. Riyadh’s premium residential zones—like those near King Salman Park—offer 5-8% rental yields, per Sands of Wealth. Jeddah’s Red Sea-facing properties tie into tourism bets like the Asian Cup 2027. Golf-linked estates near NEOM or The Red Sea Project? They’re the next Shadow Creek—exclusive, pricey, and future-proof. Check Golf Digest for course cred.
Timing’s everything. Book early—slots vanish fast. Use Sakani for residential leads or direct resort sites like NEOM’s for insider access. Move now, or watch from the sidelines.
Final Call
Saudi Arabia’s property market in 2025 isn’t a trend—it’s a tectonic shift. Premium Residency’s opened the floodgates, Vision 2030’s pouring fuel, and luxury real estate’s the prize. From Riyadh’s urban boom to Jeddah’s coastal edge, the Kingdom’s rewriting the rules. No hype. Just results. Ready to stake your claim? The clock’s ticking.
