Saudi home sales boom before new law 2026
The Saudi home sales boom is accelerating ahead of the 2026 foreign ownership law. Residential demand is rising fast, supported by mortgages, new housing supply, and investor confidence. Even before international buyers enter the market, the Kingdom’s cities are seeing record deals.
Madinah leads the surge
Madinah recorded the strongest growth in the first half of 2025. Residential transactions rose 49% to SR3.4 billion. Across Saudi Arabia, housing accounted for 63% of SR123.8 billion in total transaction value. Nearly 93,700 residential deals were completed, worth SR77.5 billion, marking a 7% annual rise.
Knight Frank noted that higher mortgage activity, government housing schemes, and new homes in major cities drove this growth.
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2026: a gamechanger for investors
From January 2026, foreign nationals will be allowed to invest directly in Saudi real estate. This reform is expected to unlock significant demand, especially from Muslim high-net-worth individuals. Faisal Durrani of Knight Frank said that 84% of Muslim investors surveyed want to acquire Saudi property once the law takes effect.
Developers are already positioning for the shift. Dar Global recently launched a Trump Tower in Jeddah, with more projects planned in Riyadh. Such developments reflect strong global confidence in the market’s long-term potential.
Riyadh market dynamics
Riyadh has faced criticism for high property prices, which make entry difficult for young Saudis. Even so, demand remains strong, and prices continue to rise. In Q2-2025, average apartment prices climbed 10.6% to SR6,175 per square meter.
Some districts saw even sharper growth. Al Taawun jumped 32% to SR9,470 per square meter, while King Abdullah District rose 17% to SR7,656. Areas like Olaya, Al Yasmin, and Hittin also recorded solid increases. Even budget-sensitive southern Riyadh edged higher, averaging SR3,000 per square meter.
The opening of the Riyadh Metro in late 2024 boosted activity. Improved connectivity has made centrally located neighborhoods more attractive, driving further growth.
Long-term growth outlook
According to Harmen De Jong of Knight Frank, the foreign ownership law will boost liquidity and improve development quality. He added that Riyadh’s market adjustment reflects a healthier long-term evolution, setting the stage for sustainable growth.
The Saudi home sales boom illustrates how strong demand, government policy, and infrastructure investment are reshaping the Kingdom’s property sector. With international investors joining in 2026, the market is poised for even greater transformation.