Saudi real estate set for transformation with foreign ownership law in 2026

Saudi Arabia’s residential real estate market is showing signs of increasing maturity, with urban centres across the Kingdom posting sharp gains in rental rates and varied transactional activity, according to the latest JLL KSA Living Market Dynamics report for Q2 2025.

The findings point to a housing sector shaped by Vision 2030 urban development projects, population growth, economic diversification, and government-led home ownership initiatives.

Demand is also being driven by a growing preference for affordable apartment living and master-planned communities offering integrated lifestyles.

Saudi real estate foreign ownership law

Saud Al Sulaimani, Country Lead and Head of Capital Markets at JLL Saudi Arabia, said: “The Saudi Arabian residential market is maturing, reflecting a dynamic landscape driven by the Kingdom’s broader objectives to meet end-user needs.

“While ongoing government initiatives have led to strong underlying demand, the sector is poised for further evolution and diversification, catalysed by the upcoming foreign ownership law to be implemented in January 2026.

“This legislation is expected to invigorate the sector and boost real estate supply, attracting international developers and investors to the Saudi market, thereby opening a broader range of opportunities for all stakeholders across the Kingdom.”

Riyadh continued to show strong momentum in Q2 2025:

• Villa prices up 15.1 per cent year-on-year
• Apartment prices up 13.3 per cent
• Villa rents rose 13.9 per cent, while apartment rents gained 6.9 per cent

In Jeddah, performance was mixed:

• Villa prices up 4.4 per cent
• Apartment prices down 3 per cent
• Apartment rents up 2.4 per cent

In Riyadh and Jeddah, new supply is increasingly tied to master-planned communities, with developers focusing on apartment living and modern amenities such as gyms and parking facilities.

The report underlines a market in transition, as Saudi Arabia balances affordability, lifestyle shifts, and investor appetite, positioning the sector for sustained growth under Vision 2030.