Saudi Arabia’s Real Estate Market Posts 4.3% Annual Growth in Q1 2025

Saudi Arabia’s real estate market continued to strengthen in the first quarter of 2025, registering a 4.3% increase in overall property prices compared to the same period last year, according to the latest data released by the General Authority for Statistics (GASTAT).

The residential sector led the market’s performance with a 5.1% annual increase, reaffirming its critical role in the Kingdom’s broader Vision 2030 objectives to diversify the economy and promote home ownership. Commercial real estate followed with a 2.5% rise in prices, while the agricultural sector experienced a 1.1% decline year-on-year.

GASTAT’s quarterly Real Estate Price Index attributed the residential sector’s growth to several sub-categories. Land plots, which carry the largest weight in the residential index, rose by 5.3%, while villa prices surged 10.3%. Apartments saw a modest increase of 1.2%, and residential floor prices edged up by 2.8%.

In the commercial sector, land prices rose 2.4%, commercial building prices climbed 3.1%, and shop or gallery values jumped 5.1%. However, this growth varied across regions.

Regional Highlights

Riyadh recorded the highest annual increase among all administrative regions, with real estate prices rising by a substantial 10.7%, driving much of the national average. Makkah followed with a 1.5% increase, while the Eastern Region saw a notable 5.5% decline.

Other regions that witnessed significant gains included Northern Borders (8.7%), Al-Jouf (8.2%), and Najran (5.6%). Meanwhile, Asir joined the Eastern Region in recording declines, falling by 4.4%.

Quarterly Performance

Compared to the last quarter of 2024, the overall real estate index grew by 0.7% in Q1 2025. Residential prices rose by 1.9% during this period, primarily driven by a 3.2% increase in land plot values. Apartment and residential floor prices each increased by 0.2%, while villa prices fell slightly by 1.4%.

The commercial real estate segment saw a 2.1% quarter-on-quarter decline, largely due to a 2.6% drop in commercial land plot prices. However, commercial building prices rose by 1.6%, and gallery/shop prices grew by 1.8%.

In the agricultural segment, property prices dropped by 3.8% over the previous quarter, reflecting an equivalent decline in agricultural land values.

Saudi Arabia’s real estate market continues to reflect the country’s ongoing economic transformation, supported by regulatory reforms, infrastructure development, and efforts to enhance transparency in property transactions. With the residential sector taking center stage, the market remains a cornerstone of the Kingdom’s Vision 2030 goals to build sustainable cities and increase citizen homeownership.