Housing demand in Saudi Arabia surges as 72% look to own homes: report 

Updated 29 sec ago

Nadin Hassan

March 04, 2026 15:13

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RIYADH: Saudi Arabia’s housing market is witnessing a surge in demand, with 72 percent of Saudis and expatriates expressing interest in homeownership, according to a new report.  

Knight Frank’s Saudi Report 2026 found that demand is particularly strong among high-income nationals earning over SR50,000 ($13,300) per month, with 93 percent looking to buy property. 

The survey of 1,037 respondents — 835 Saudis and 100 expatriates — also revealed growing interest among expatriates, with 77 percent aspiring to own homes in the Kingdom. 

Homeownership in Saudi Arabia reached 63.7 percent by the end of 2023, nearing the government’s Vision 2030 target of 70 percent. However, affordability remains a challenge, prompting some buyers to explore rental options. 

The total value of housing transactions in 2024 stood at SR267.8 billion across 236,690 sales, marking a 37 percent increase in transaction volume and a 27 percent rise in value compared to the previous year. 

The desire for homeownership is largely driven by investment opportunities, family-friendly communities, and access to high-quality housing. 

According to the survey, 48 percent of respondents cited the need for a primary residence, while 31 percent were looking for a home for their children or extended family. 

Saudi Arabia’s residential property market has experienced significant price growth, particularly in major cities. 

In Riyadh, apartment prices have surged 75 percent since 2019, while villa prices have risen 40 percent. In Jeddah, residential transactions jumped 53 percent in 2024, with total property values increasing by 43 percent. 

Dammam also saw a notable rise, with residential transactions up 49 percent and apartment prices increasing by 6.2 percent. 

Despite government efforts to boost supply, affordability remains a challenge, particularly for middle-income buyers. 

The report highlights a growing supply of premium and luxury housing, yet many buyers struggle to find homes within their budgets. 

According to Knight Frank’s survey, most homebuyers plan to spend between SR750,000 and SR2.5 million. However, the report highlights a mismatch between market pricing and buyers’ budgets, with the average price of a four-bedroom villa in Riyadh standing at SR2.8 million. 

In terms of financing, 58 percent of Saudi buyers rely on family support to fund their home purchases, while 40 percent opt for self-sought financing solutions. 

Mortgage-backed transactions are also rising, driven by government-backed programs such as Sakani and Dhamanat, which continue to improve access to home loans. 

The report also identifies a shift in housing preferences among Saudi nationals and expatriates. More than half of the respondents prefer villas, with higher-income Saudis favoring larger homes. 

Townhouses and apartments are growing in popularity among younger buyers and middle-income families. Riyadh and Jeddah remain the top choices, with 54 percent of respondents favoring the capital. 

While demand for property ownership remains strong, rental demand is also increasing, particularly among younger Saudis and expatriates who are exploring flexible living options due to rising property prices. 

With the Kingdom investing heavily in its real estate sector as part of Vision 2030, homeownership and rental markets continue to evolve. 

As Saudi Arabia nears its 70 percent homeownership target, affordability challenges, rising prices, and shifting consumer preferences will shape the housing sector’s trajectory in the coming years.