Know the Saudi market

You cannot advise clients on a market you do not know. This lesson gives you a working map of Saudi Arabia’s three main markets, the buyers you will meet and the type of work each segment brings. Figures move every quarter, so treat them as a starting point and update them yourself.

The national picture

REGA recorded SAR 35.5 billion of real estate transactions across 25,151 deals in July 2026, down 32% in value from a year earlier. The Riyadh region took 44% of the value and the Makkah region, which includes Jeddah, took 28% (Argaam). After a long boom, the market has cooled, so clients are more careful and price matters more.

Riyadh

The capital is the largest and most active market. Growth is pushed north and east by large state-backed projects and by companies opening regional headquarters. The Minister of Investment reported 660 regional headquarters in September 2025, and their senior staff need quality homes.

• Volumes. Savills counted about 6,944 residential transactions in H1 2026, up 4.9% year on year, while their value fell 20.7% to SAR 11.25 billion.
• Prices. Knight Frank reported that Riyadh apartment prices rose 6.3% year on year in Q1 2026.
• Key areas. North Riyadh districts such as Al Yasmin, Hittin, Al Taawun and Al Sahafa are among the most sought after, and the north holds the city’s highest villa prices (Knight Frank).
• Big projects. KAFD, Diriyah, King Salman Park and ROSHN’s Sedra are all designated foreign ownership zones. New Murabba is one too, but its Mukaab tower was paused in January 2026 and the district’s completion moved from 2030 to 2040. Do not sell it as a near-term story.
• Rentals. The five-year rent freeze shapes every investor conversation (lesson 4).

Explore the city on Riyadh on CloserPass.

Jeddah

Jeddah is the Red Sea gateway and the commercial hub of the west. Prime demand runs north along the coast, from Al Shati and Al Zahra up to Obhur.

• Volumes. About 5,800 residential transactions worth SAR 7.2 billion in Q1 2026, down roughly 31% year on year, while apartment prices still rose 1.9% (Cavendish Maxwell via EnterpriseAM).
• Prices. Knight Frank puts villa prices at about SAR 10,950 per sq m in Al Murjan and SAR 9,250 in Shatea, the most expensive villa districts.
• Foreign buyers. Jeddah has by far the most foreign ownership zones, about 57, centred on Jeddah Central and coastal developments.

See Jeddah on CloserPass.

Eastern Province

Dammam, Al Khobar and Dhahran, home of Saudi Aramco, form one metro market. It is the most affordable of the three and, in early 2026, the fastest growing.

• Volumes. About 2,900 home sales worth SAR 3.6 billion in Q1 2026 in Dammam, up about 48% in value year on year.
• Prices. Knight Frank puts apartments at about SAR 4,115 per sq m in Khobar against SAR 3,555 in Dammam.
• Foreign buyers. No foreign ownership zone had been designated here in June 2026. Legal residents can still buy one home for their own use.

See Eastern Province on CloserPass.

Who buys and why

• Saudi families buying a first home. Banks can finance up to 90% for a citizen’s first home under SAMA rules, and the state covers the transaction tax on the first SAR 1 million of a citizen’s first home (lesson 6). Location near schools and mosques often matters more than finishes.
• Saudi investors. They look at yields, but the Riyadh rent freeze means rents will not rise there until 2030.
• Resident expats. Since 22 January 2026, a legal resident can own one home for personal use outside the zones, except in Makkah and Madinah.
• Foreign buyers and companies. They buy inside approved zones in Riyadh, Jeddah, AlUla, Makkah and Madinah. In Makkah and Madinah, individual buyers must be Muslim. They also pay a 2% fee on top of the 5% transaction tax in the four main cities (Deloitte).

Off-plan, resale and rentals

Segment	What the work looks like
Off-plan	Developer launches, Wafi-licensed projects, escrow payments, long timelines
Resale	Title checks, negotiation, tax and transfer on the registry, higher fees per deal
Rentals	Fast deals, Ejar registration, 2.5% of the first year’s rent, rent freeze in Riyadh

Many newcomers start with rentals to learn the market and build contacts, then move into sales. Practise with the Saudi areas exercises and Where to invest in Saudi Arabia.