Riyadh is emerging as a significant player in the global real estate sector, challenging Dubai’s traditional dominance. This shift is driven by several factors, including a substantial price advantage over Dubai. Real estate prices in Riyadh are notably more affordable, with an average cost of $1,394 per square meter compared to Dubai’s $7,002 per square meter. The Saudi government’s efforts to attract international investors through financial incentives and a pool of potential domestic investors, estimated at 37 million, are also contributing to Riyadh’s rise in the real estate market.
Furthermore, investments in Saudi Arabia are expected to reach hundreds of billions of dollars in the next five years, which will likely lead to price increases and create new opportunities for investors. The average sale prices for apartments in Riyadh are projected to surge by 22%, and villa prices are expected to rise by 12% year-over-year. Knight Frank’s data indicates that Riyadh is on track for remarkable growth, with over 1.5 million available units and a projected 10% increase in supply by 2025.
Riyadh’s affordability, government initiatives, and growing demand for housing and lifestyle facilities are positioning it as a promising destination for real estate investment, challenging Dubai’s long-standing reign as the regional leader in the sector.