Market research & Development
Saudi Arabia’s luxury property market is surging. Driven by bold vision and rapid urban growth. Riyadh and Jeddah stand at the forefront, commanding attention with their towering skylines and exclusive residences.
The Market at a Glance
The luxury residential real estate market in Saudi Arabia is on a steep climb. In 2025, it’s valued at USD 15.51 billion, with projections to hit USD 20.75 billion by 2030. That’s a compound annual growth rate (CAGR) of 6%. For context, the broader residential real estate market is expected to reach USD 203.62 billion in 2025, growing at 8.77% CAGR to USD 310 billion by 2030. Luxury is a key driver within this boom.
Riyadh and Jeddah dominate the high-end segment. Together, they account for a significant share of the Kingdom’s upscale properties. Apartments, condominiums, villas, and landed houses define the offerings, with demand spiking in urban hubs. Why? Vision 2030. This transformative plan is fuelling infrastructure investment, population growth, and a hunger for premium living spaces.
Riyadh
The Capital of High-End Living
Riyadh is the beating heart of Saudi Arabia’s luxury property scene. Home to 7.95 million people in 2025, its population is set to balloon to 17 million by 2030. That’s a 127% increase in just five years. This explosive growth drives demand for upscale homes, from sleek penthouses to sprawling villas.
Residential sale prices in Riyadh jumped 10% year-on-year in the first half of 2024, according to JLL’s KSA Market Dynamics Report. Rents? Up 9% over the same period. Grade A office rents also soared 19% to SAR 2,090 per square metre annually. These figures signal a market on fire. Developers delivered 16,200 new residential units in early 2024, pushing the total stock to 1.5 million homes. Another 16,000 units are slated for the second half of the year.
What’s fuelling this? Vision 2030 projects like King Salman Park and Qiddiya Entertainment City. These mega-developments draw expatriates and locals alike, tightening supply and boosting values. High-net-worth individuals are flocking to premium areas like Diriyah Gate and Kingdom Centre, where modern amenities meet panoramic views. Apartments here average USD 8.77 million, with villas often exceeding USD 18 million, per JamesEdition.
Jeddah
Coastal Elegance Meets Urban Ambition
Jeddah, with 5.02 million residents, offers a different flavour of luxury. Known for its Red Sea vistas, this port city blends coastal charm with urban dynamism. Residential sale prices rose 5% year-on-year in early 2024, while rents increased by 4%. Growth is slower than Riyadh’s, but the appeal is undeniable.
The luxury market here thrives on beachfront properties and gated communities. Projects like Raffles Residence Jeddah and Al Marina showcase contemporary design and vast green spaces. In the first half of 2024, Jeddah added 11,300 residential units, bringing its total to 891,000. Another 16,000 are expected by year-end. The Jeddah Tower, once completed, will further elevate the skyline, offering 500 high-end apartments.
Vision 2030’s Red Sea Project is a game-changer. This tourism-driven initiative promises 2,500 luxury hotel rooms and 700 villas along the coast. It’s pulling in global investors and affluent buyers, with properties commanding top dollar. Average villa prices hit USD 3.73 million, while apartments range from USD 514,000 to USD 17.97 million, according to JamesEdition.
Key Trends Shaping the Market
Several forces are propelling luxury property in Saudi Arabia forward. Urbanisation tops the list. By 2030, 97.6% of the population will live in cities, up from 84.7% in 2022. Riyadh and Jeddah are ground zero for this shift, with young professionals and expats driving demand for modern, amenity-rich homes.
Sustainability is another focus. Developers are weaving green spaces and smart tech into projects. Think solar-powered villas and AI-driven security systems. Erth Real Estate’s Masar and Alyasmeen developments in Riyadh exemplify this, blending comfort with cutting-edge design.
Apartments and condominiums are gaining ground. In 2024, these units saw a notable uptick, fuelled by a 10% price hike in Riyadh. Vertical living suits the urban elite, offering convenience and luxury in equal measure. Villas, however, remain the fastest-growing segment, with an 8% CAGR projected through 2029. Premium areas in both cities are rolling out new projects with pools, terraces, and fitness centres.
The Numbers That Matter
Let’s break it down. Here’s a snapshot of the luxury property market in Riyadh and Jeddah, based on the latest data:
- Riyadh Sales Price Growth: 10% year-on-year (H1 2024)
- Riyadh Rent Growth: 9% year-on-year (H1 2024)
- Jeddah Sales Price Growth: 5% year-on-year (H1 2024)
- Jeddah Rent Growth: 4% year-on-year (H1 2024)
- Luxury Market Size 2025: USD 15.51 billion
- Projected Size 2030: USD 20.75 billion
- Average Riyadh Apartment Price: USD 8.77 million
- Average Jeddah Villa Price: USD 3.73 million
These stats, highlight a market ripe with potential. Transactions underscore this. In H1 2024, Saudi Arabia saw 106,700 real estate deals, a 38% surge, with a total value of SAR 127.3 billion—up 50%.
sources: JLL, Knight Frank
Why Investors Are Watching
Saudi Arabia’s economic diversification is a magnet. Vision 2030 is slashing oil reliance, pumping billions into tourism, entertainment, and tech. Riyadh and Jeddah are reaping the rewards. The Kingdom welcomed 150 million visitors in 2024, with a goal of 2030 in sight. Events like Expo 2030 and the FIFA World Cup 2034 will only amplify this.
Expat inflows are another boost. Population growth averages 3.3% annually through 2027, per S&P Global Ratings. New household formation and falling interest rates are spurring mortgage demand. Meanwhile, 30-year tax breaks for Vision 2030 projects sweeten the deal for investors.
Challenges exist. Land, construction, and material costs are rising. Competition for financing with mega-projects is stiff. Yet, the pipeline remains robust, with Riyadh and Jeddah leading the charge.
What Buyers Want
Buyers in this market crave exclusivity. High-end finishes, 24-hour concierge, and Red Sea or cityscape views top the list. In Riyadh, proximity to business hubs like the Diplomatic Quarter matters. In Jeddah, it’s all about the coast—think private beaches and marinas. Both cities see demand for smart homes with energy-efficient designs, reflecting a younger, tech-savvy demographic.
A Global Spotlight
Riyadh and Jeddah are climbing global ranks. A 2025 Henley & Partners report lists them among the world’s fastest-growing cities for millionaires. The ultra-high-net-worth population is projected to rise 20% by 2025, hitting 8,416, per Knight Frank’s Wealth Report. This influx is turbocharging the luxury market.
Tying It to Opportunity
This is more than a trend—it’s a shift. Riyadh and Jeddah are redefining luxury living in Saudi Arabia. The data speaks for itself: consistent growth, strategic projects, and a global allure. For those eyeing the market, the horizon is clear. Partnering with experts ourselves can turn vision into reality. Their global reach and precision make them a natural fit for navigating this dynamic landscape.
