Saudi Housing Deals Surpass $20bn in H1 as Madinah Drives Growth: Knight Frank
Saudi Arabia's residential market recorded nearly 93,700 deals in H1 driven by strong mortgage activity and government support.
Saudi Arabia's residential market recorded a total of 93,700 transactions in the first half of the year, marking a 7% increase compared to the same period last year.
According to Knight Frank, this represents 63% of the Kingdom's overall real estate activity, with a transaction value of SR77.5 billion ($20.6 billion).
The consultancy notes that the Saudi real estate market experienced steady growth in Q2, with property prices increasing by 3.2% YoY and residential costs rising by 0.4%, as per official data from the General Authority for Statistics.
This growth is part of a broader economic diversification strategy in the Kingdom.
In line with projections made by the Real Estate General Authority, which expects the market to reach $101.62 billion by 2029, housing has become a key pillar in Saudi Arabia's Vision 2030 strategy aimed at reducing dependency on oil.
Among the significant legislative developments this year is the approval of the new Law of Real Estate Ownership by Non-Saudis, scheduled to take effect in January 2026.
This new framework, combined with increased residential deliveries and reforms in the mortgage market, is expected to enhance market liquidity and boost investor confidence.
The Knight Frank report indicates diverging trends within different cities.
While Riyadh shows signs of recalibration, Madinah leads the nation in growth, with residential transactions increasing by 49% YoY to SR3.4 billion.
In contrast, despite a decline of 31% in transaction volumes, Riyadh's residential prices continued to rise, with average apartment prices climbing by 10.6% YoY to SR6,175 per sq.
meter.
Jeddah's market also gained momentum, witnessing a 28% increase in total transaction value to SR17.3 billion, driven by shifting demand towards large master-planned communities that offer integrated lifestyles.
Looking ahead, the consultancy expects tens of thousands of new homes to be delivered in Madinah and Makkah by 2028, with Makkah's supply set to grow from 428,200 units to 462,000, and Madinah expected to add 27,860 homes, bringing its total inventory to 381,200 units.
These large-scale government-backed projects are transforming the urban fabric of both cities, enhancing their appeal to residents and visiting pilgrims while supporting broader tourism and economic development goals.
With strategic reforms and ongoing Vision 2030 initiatives in place, the Saudi residential sector is poised for sustained long-term growth.
According to Knight Frank, this represents 63% of the Kingdom's overall real estate activity, with a transaction value of SR77.5 billion ($20.6 billion).
The consultancy notes that the Saudi real estate market experienced steady growth in Q2, with property prices increasing by 3.2% YoY and residential costs rising by 0.4%, as per official data from the General Authority for Statistics.
This growth is part of a broader economic diversification strategy in the Kingdom.
In line with projections made by the Real Estate General Authority, which expects the market to reach $101.62 billion by 2029, housing has become a key pillar in Saudi Arabia's Vision 2030 strategy aimed at reducing dependency on oil.
Among the significant legislative developments this year is the approval of the new Law of Real Estate Ownership by Non-Saudis, scheduled to take effect in January 2026.
This new framework, combined with increased residential deliveries and reforms in the mortgage market, is expected to enhance market liquidity and boost investor confidence.
The Knight Frank report indicates diverging trends within different cities.
While Riyadh shows signs of recalibration, Madinah leads the nation in growth, with residential transactions increasing by 49% YoY to SR3.4 billion.
In contrast, despite a decline of 31% in transaction volumes, Riyadh's residential prices continued to rise, with average apartment prices climbing by 10.6% YoY to SR6,175 per sq.
meter.
Jeddah's market also gained momentum, witnessing a 28% increase in total transaction value to SR17.3 billion, driven by shifting demand towards large master-planned communities that offer integrated lifestyles.
Looking ahead, the consultancy expects tens of thousands of new homes to be delivered in Madinah and Makkah by 2028, with Makkah's supply set to grow from 428,200 units to 462,000, and Madinah expected to add 27,860 homes, bringing its total inventory to 381,200 units.
These large-scale government-backed projects are transforming the urban fabric of both cities, enhancing their appeal to residents and visiting pilgrims while supporting broader tourism and economic development goals.
With strategic reforms and ongoing Vision 2030 initiatives in place, the Saudi residential sector is poised for sustained long-term growth.
