Madinah Tops Saudi Cities in Residential Sales Value Growth

In a new development revealing the strength of the Saudi real estate market, recent data shows that residential sales in Madinah recorded the highest growth rate among all cities in the Kingdom. Madinah has taken center stage in the real estate scene, driven by increased demand and the expansion of residential investments. This surge is part of a series of positive indicators currently headlining Saudi real estate market news, reflecting the vitality of the sector and its pivotal role in supporting the national economy.

News Details

A recent report by Knight Frank, a leading real estate consultancy, revealed that residential sales in Madinah achieved the highest growth rate in the Kingdom during the first half of this year, recording a massive 49% jump. This robust performance reflects growing investor confidence and rising demand from end-users, especially with the ongoing support of government housing programs aiming to increase homeownership to 70% by 2030.

Saudi real estate market updates also indicate a clear divergence between cities:

• Makkah: While the number of transactions rose by 11%, their total value dropped by approximately 33%, confirming a shift toward smaller, more affordable units.
• Riyadh: The value of transactions decreased by about 20%; however, prices continued to climb. Apartment prices rose by an average of 10.6% year-on-year in the second quarter, driven by demand in centrally located neighborhoods with integrated infrastructure.
• Jeddah: The residential sector continued its growth, with transaction values increasing by 28%, supported by available purchasing power and more competitive pricing compared to other cities.

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The Future of the Saudi Real Estate Market

Experts predict that the Saudi real estate market will gain additional momentum when the law allowing foreign ownership of property comes into effect early next year. This is expected to boost demand, particularly in Makkah and Madinah. Furthermore, the government is working to enhance residential supply through massive projects such as the "Wajhat Al-Ruba" project east of Riyadh, which will provide 9,000 new housing units.

With these indicators, the Saudi real estate market remains a mirror of the Kingdom's economic and social transformations, with expectations of further growth and development in the coming years.

Frequently Asked Questions (FAQs)

What factors might affect Saudi real estate prices in the future? Key factors include the continuation of subsidized mortgage programs, the launch of new residential projects by both public and private sectors, the implementation of the foreign ownership law, and the expansion of infrastructure such as transport and metro networks.

How does buyer behavior differ between major Saudi cities? In Riyadh, demand is concentrated on apartments in central districts despite high prices. Jeddah tends to attract those seeking competitive prices and long-term investment opportunities. In Madinah and Makkah, demand is largely driven by religious significance and investment motives due to the status of the two Holy Cities.

What is the role of Vision 2030 in supporting the Saudi real estate market? Vision 2030 set a goal to raise homeownership to 70%, prompting the government to launch various support and financing programs and stimulate partnerships with real estate developers. Additionally, giga-projects like NEOM, Qiddiya, and New Riyadh represent massive future opportunities that will reshape the Kingdom's real estate map.