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RIYADH: ��������’s residential real estate sector is demonstrating increased maturity and resilience, driven by evolving end-user preferences and government-led initiatives, a new JLL report said.

The latest market dynamics report for the second quarter of 2025 from the real estate consultancy revealed a nuanced yet dynamic landscape across key urban centers, with Riyadh and Jeddah poised to add 27,540 new residential units by the end of the year. 

This comes as the Kingdom’s real estate market maintained steady growth in the second quarter, with overall property prices rising 3.2 percent year on year, and residential property costs recorded a 0.4 percent increase, according to data from the General Authority for Statistics.

“The ��������n residential market is maturing, reflecting a dynamic landscape driven by the Kingdom’s broader objectives to meet end-user needs,” said Saud Al-Sulaimani, country lead and head of capital markets at JLL ��������.
 
“While ongoing government initiatives have led to strong underlying demand, the sector is poised for further evolution and diversification, catalyzed by the upcoming foreign ownership law to be implemented in January 2026,” he added.

According to the report, Riyadh continued to lead across the Kingdom, recording a 15.1 percent annual increase in villa sales prices and a 13.3 percent rise in apartment prices. Rental rates in the capital also climbed, with villas up 13.9 percent and apartments by 6.9 percent.

Jeddah’s market showed a more varied performance. While villa prices increased by 4.4 percent, apartment prices saw a slight decline of 3 percent. The city also experienced a significant 46.1 percent year-on-year surge in sales transaction volumes, underscoring strong underlying demand.

The Dammam Metropolitan Area, comprising Dammam, Al Khobar, and Jubail, continues to attract residents with its waterfront appeal and high-quality compounds.

Alkhobar stood out with a 23.7 percent increase in sales transactions, while Dammam saw a 6.7 percent decline. Apartment prices in Alkhobar rose by 5.8 percent, with villas up 2.2 percent.

Transactional activity varied widely across the Kingdom, the report said, adding: “Jeddah and Alkhobar demonstrated robust growth in sales transactions, while Riyadh and Dammam experienced slight declines.” 

Apartments dominated market activity, accounting for over 80 percent of transactions in most cities, reflecting a shift toward affordability and changing lifestyle preferences.

Master-planned communities are reshaping future supply, particularly in Riyadh and Jeddah, where development is expanding northward. These integrated communities are increasingly favored for their amenities and holistic living environments.

Riyadh’s total residential stock reached 2.17 million units after the delivery of 5,600 units in the first half of 2025, with another 18,900 expected by year-end. Jeddah’s stock rose to 1.23 million units, with 8,640 new units anticipated. In the Dammam Metropolitan Area, 1,740 units were delivered in the first half, bringing total stock to 725,400 units, with an additional 860 expected. 

The report highlighted the promising impact of the foreign ownership law and continued demand driven by population growth, economic diversification, and homeownership initiatives. Developers are encouraged to focus on amenity-rich, high-end communities, particularly in the Dammam Metropolitan Area, to meet rising expectations for quality living environments.

JLL’s analysis confirms that ��������’s residential market is not only stable but strategically positioned for sustained growth, innovation, and international investment in the years to come.

In its latest market overview, published a few days before the JLL report, Knight Frank said that ��������’s residential market recorded nearly 93,700 deals in the first half of the year, a 7 percent year-on-year increase, driven by strong mortgage activity and government support.

The segment accounted for 63 percent of total real estate activity in the Kingdom, with transactions valued at SR77.5 billion ($20.6 billion), the consultancy said.

RIYADH: ��������’s Tadawul All Share Index fell on Wednesday, dropping 66.29 points, or 0.61 percent, to close at 10,808.45.

Total trading turnover reached SR4 billion ($1.07 billion), with 197.81 million shares exchanged. Of the traded stocks, 93 advanced while 154 declined.

The MSCI Tadawul 30 Index lost 10.53 points, or 0.75 percent, to settle at 1,393.71. 

The parallel Nomu market also ended lower, slipping 2.46 points, or 0.01 percent, to 26,181.58, with 37 gainers and 40 losers.

The day’s top performer was Saudi Industrial Investment Group, which gained 4.95 percent to close at SR19.29. 

Other strong gainers included Filing and Packing Materials Manufacturing Co., up 4.61 percent at SR34.94; Seera Group Holding, rising 3.58 percent to SR28.90; and Etihad Atheeb Telecommunication Co., which climbed 3.40 percent to SR106.50. Saudi Kayan Petrochemical Co. also rose 2.52 percent to SR5.29. 

Leading decliners were SAL Saudi Logistics Services Co., down 4.44 percent to SR172, followed by Saudi Investment Bank, which fell 3.34 percent to SR13.60. Banque Saudi Fransi dropped 3.17 percent to SR16.20, while Riyad Bank declined 2.98 percent to SR26.02.

On the announcement front, Saudi Awwal Bank confirmed the commencement of its offer to issue US dollar-denominated Tier 2 Capital Green Notes under its Medium Term Note Program, according to a statement published on the Saudi Exchange.

The bank, which had earlier disclosed its intention to proceed with the issuance on Aug. 25, said the offering began on Aug. 27 and will close on Aug. 28. The initiative targets eligible investors both in �������� and internationally.

The final value and terms of the notes will be determined based on prevailing market conditions. The minimum subscription has been set at $200,000, with additional increments of $1,000. The notes, which mature after 10 years, include a callable feature after five years, providing the bank with flexibility depending on funding needs and market conditions.

Saudi Awwal Bank has appointed a consortium of global and regional financial institutions as joint lead managers to oversee the offering and issuance of the notes. These include HSBC Bank plc, Goldman Sachs International, Abu Dhabi Commercial Bank PJSC, Citigroup Global Markets Ltd., and DBS Bank Ltd.

Other joint lead managers are Emirates NBD Bank P.J.S.C., Mashreqbank PSC, Mizuho International plc, and Societe Generale.

The final offer price and expected return on the notes will be determined later, in line with market movements and investor demand. 

Saudi Awwal Bank’s share price fell 1.24 percent to close at SR30.32.

Alinma Bank also announced the start of its US dollar-denominated Sustainable Additional Tier 1 Capital Certificates offering under its Additional Tier 1 Capital Certificate Issuance Programme, according to a statement on the Saudi Exchange.

The bank had previously disclosed its intention to proceed on Aug. 25. The offering, which began on Aug. 27, is set to close on Aug. 28, targeting eligible investors in �������� and internationally. The final value and terms of the certificates will be determined based on market conditions at the time of issuance.

The minimum subscription is $200,000, with additional investments accepted in increments of $1,000. The issuance is being executed through a special purpose vehicle.

Alinma Bank has appointed a group of leading regional and international financial institutions as joint lead managers, including Abu Dhabi Islamic Bank PJSC, Alinma Capital Co., Dubai Islamic Bank PJSC, and Emirates NBD Bank P.J.S.C.

Other joint lead managers are Goldman Sachs International, J.P. Morgan Securities plc, and Standard Chartered Bank.

Alinma Bank’s share price fell 0.31 percent to close at SR25.48.