Dammam Surpasses Riyadh in Saudi Property Market Growth

Jul 13, 2026

69 min

Jul 13, 2026 13:31

This Saudi city is outpacing Riyadh in property growth with home sales up 71%

## Dammam's Property Boom

Dammam has emerged as the leader in Saudi Arabia's residential property market, with a remarkable 71% increase in home sales during the first quarter of 2026. The total value of these transactions reached SAR3.6 billion, marking a significant rise from the previous quarter.

## Riyadh and Jeddah Trends

In contrast, Riyadh experienced a 2.8% drop in apartment rents and a 1.2% decline in villa rents during the same period. Despite these decreases, rental costs in Riyadh remain higher than the previous year. Meanwhile, Jeddah saw a 25% decline in residential sales compared to the last quarter.

## Market Dynamics

The property market in Saudi Arabia is influenced by various factors, including affordability pressures and financing costs. The introduction of a rent freeze in Riyadh and the addition of new residential units have also impacted the market dynamics.

## Future Developments

Riyadh is expected to add nearly 31,000 new homes by the end of 2026, with further expansions planned through 2028. Jeddah and Dammam are also set to see new housing developments, albeit at a more modest pace.

## Foreign Investment Opportunities

A new law introduced in January 2026 allows foreign individuals and companies to invest in real estate within designated areas in Saudi Arabia, including parts of Riyadh and Jeddah. This move is expected to attract more international investors to the Saudi property market.

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