Riyadh Real Estate Market Overview
Residential Market
| Indicator | Value | Source | Date |
|---|---|---|---|
| Median Housing Price | SAR 1.05M ($280K) | Global Property Guide | Q1 2026 |
| Average Housing Price | SAR 1.30M ($347K) | Global Property Guide | Q1 2026 |
| Apartment Price/sqm | SAR 6,100 ($1,600) | Mada Properties | Jun 2025 |
| Villa Price/sqm | SAR 5,396 ($1,439) | Mada Properties | Jun 2025 |
| YoY Price Growth | 2.9% | Global Property Guide | 2025 |
| QoQ Price Change | -0.9% | Global Property Guide | Q4 2025 |
| Gross Rental Yield | 8.89% | Global Property Guide | Q1 2026 |
| Apartment Rental Growth | 19.6% YoY | JLL | Q2 2025 |
| Villa Rental Growth | 17.2% YoY | JLL | Q2 2025 |
| Average Apartment Rent | SAR 30,832/yr | JLL | Q2 2025 |
| Residential Sales (H1 2025) | $17.5B (+63% YoY) | Cavendish Maxwell | H1 2025 |
| Total Residential Stock | 2.18M units | CBRE | Q3 2025 |
| Pipeline (2026-2027) | 57,000 units | Economy Middle East | 2026 |
| Rent Freeze Duration | 5 years (from Sep 2025) | Saudi government | Sep 2025 |
Office Market
| Indicator | Value | Source | Date |
|---|---|---|---|
| Grade-A Occupancy | 98% | CBRE | Q3 2025 |
| Grade-A Rent | SAR 2,750/sqm | CBRE | Q3 2025 |
| Grade-A Rent Growth | 15.1% YoY | CBRE | Q3 2025 |
| Grade-B Rent Growth | 16.5% YoY | CBRE | Q3 2025 |
| Office Stock (Riyadh) | ~5M sqm | CBRE | Q3 2025 |
| Projected Stock (2028) | ~7.5M sqm | CBRE/Knight Frank | Projection |
| RHQ Firm Commitments | 780+ multinationals | CBRE | 2025 |
| Annual Office Return | 5-8% | Market estimates | 2025 |
New Murabba Project Metrics
| Indicator | Value | Source | Date |
|---|---|---|---|
| Total Investment | $50B | Knight Frank | Valuation |
| Site Area | 19 sq km | NMDC | 2023 |
| Total Floor Area | 25M sqm | NMDC | 2023 |
| Residential Units | 104,000 | NMDC | Masterplan |
| Hotel Rooms | 9,000 | NMDC | Masterplan |
| Office Space | 1.4M sqm | NMDC | Masterplan |
| Retail Space | 980,000 sqm | NMDC | Masterplan |
| GDP Contribution Target | SAR 180B ($48B) | NMDC/PIF | Target |
| Job Creation Target | 334,000 | NMDC/PIF | Target |
| Planned Residents | 420,000 | NMDC | Masterplan |
| Mukaab Groundwork | 86% complete | NMDC | Oct 2024 |
| Mukaab Status | Suspended | Reuters | Jan 2026 |
| Completion Timeline | 2040 (phased) | AGBI | Oct 2025 |
Regulatory Indicators
| Indicator | Value | Source | Date |
|---|---|---|---|
| Foreign Ownership Law | Effective Jan 22, 2026 | Royal Decree M/14 | 2026 |
| CMA Foreign Access | QFI eliminated Feb 1, 2026 | CMA | 2026 |
| SAMA Repo Rate | 4.25% | SAMA | Dec 2025 |
| SAMA Reverse Repo | 3.75% | SAMA | Dec 2025 |
| Listed REITs | 19 ($4B market cap) | Tadawul | Aug 2025 |
| Saudi Population | 35.3M (44.4% non-Saudi) | GASTAT | 2025 |
| Saudi FDI (2024) | $30B+ | Vision 2030 | 2024 |
Key Market Trends and Analysis
Residential Market Trajectory
Riyadh’s residential market has transitioned from rapid appreciation (17.7 percent year-on-year growth in 2022) to a more moderate growth environment (2.9 percent in 2025). This deceleration reflects natural market maturation after a period of catch-up growth driven by Vision 2030 investment, RHQ-program relocations, and population growth. The quarterly decline of 0.9 percent in Q4 2025 indicates selective cooling in some market segments while prime locations maintain pricing power.
The $17.5 billion in H1 2025 residential sales (Cavendish Maxwell) — surging 63 percent year-on-year — demonstrates that transaction volume remains robust despite price growth moderation. Market depth supports liquidity for investors considering entry or exit positions. Saudi Arabia’s expanding mortgage market (SAR 52 billion annual origination) provides the financing infrastructure that sustains residential demand across income levels.
The 5-year rent freeze (from September 2025) introduces a regulatory ceiling on rental growth through approximately 2030. Current rental rates — apartment growth of 19.6 percent and villa growth of 17.2 percent — represent the peak of the pre-freeze growth cycle. Rents are now stabilized at these elevated levels, providing income certainty for landlords while capping further increases. New properties entering the market can establish initial rents at prevailing rates before the freeze constrains increases.
Office Market Analysis
The 98 percent Grade-A occupancy rate signals structural undersupply rather than cyclical tightness. In standard real estate analysis, occupancy above 95 percent represents a landlord’s market where tenants accept above-trend rent increases to secure space. The 15.1 percent year-on-year growth in Grade-A rents to SAR 2,750/sqm confirms this dynamic. Grade-B rent growth of 16.5 percent demonstrates demand spillover from the premium segment into lower-specification space.
The RHQ program’s 780-plus multinational relocations provide the structural demand floor for the office market. At a conservative average of 2,000 sqm per headquarters, the RHQ program alone generates demand for approximately 1.56 million square meters — exceeding New Murabba’s entire 1.4 million square meter office allocation. Total Riyadh office stock growth from 9.7 million to a projected 15 million square meters by 2028 represents substantial supply expansion that must be absorbed by sustained demand growth.
New Murabba Development Status
The Mukaab’s 86 percent groundwork completion (NMDC, October 2024) represents the last publicly reported construction milestone before the January 2026 suspension. The surrounding district — residential neighborhoods, commercial precincts, infrastructure, and the 45,000-seat FIFA 2034 stadium — continues development under CEO Michael Dyke’s leadership. Phase 1 targets the 2030 Riyadh Expo with full build-out extended to 2040.
The development’s $50 billion total investment (Knight Frank valuation) encompasses 104,000 residential units, 9,000 hotel rooms, 1.4 million square meters of office space, 980,000 square meters of retail, 620,000 square meters of leisure, and 1.8 million square meters of community facilities. The GDP contribution target of SAR 180 billion ($48 billion) and job creation target of 334,000 reflect the district’s intended economic scale.
Regulatory Environment Summary
The January 2026 Foreign Ownership Law and February 2026 CMA foreign investor liberalization create the most accessible environment for international real estate investment in Saudi Arabia’s history. Combined with SAMA’s easing cycle (repo rate at 4.25 percent, with expectations for further cuts), the regulatory environment is directionally favorable for property demand and investment returns. The 19 Tadawul-listed REITs ($4 billion market cap) provide regulated, liquid access for investors seeking portfolio-level exposure without direct ownership complexity.
Data on this dashboard is sourced from the publications listed in the Source column. See our methodology for verification standards. For investment analysis applying these data points, explore our deep-dive research. Premium Intelligence subscribers receive quarterly data refreshes with downloadable datasets. See also investment comparison and development timeline dashboards.