Rising home prices are making many Saudis and expats ask a tough question: Is homeownership still within reach? Nonetheless, housing affordability is a legitimate concern for both locals and foreigners who intend to relocate to the business hub. It’s a fair concern. Real estate values have been climbing, especially in major cities. But that doesn’t mean owning a home is out of the question.
Let’s break down what’s really happening and what options are still on the table for first-time buyers.
What’s Driving Prices Up?
Let’s start with the basics.
Saudi Arabia’s population is growing fast. In 2025, the population crossed 36 million, with more people moving into urban centers like Riyadh.
More people mean more housing demand. But that demand isn’t always met with enough supply.
There’s also a shortage of affordable land in city centers. Combine that with higher construction costs due to global inflation and supply chain delays, and the result is simple: prices go up. As of Q1 2025, the median price for a home in Riyadh is SAR 1.2 million, up 11% year-on-year. In Jeddah, prices have increased by 8.5%, according to the Saudi Real Estate Authority.
It’s no surprise that younger buyers are feeling squeezed.
Government to the Rescue
Thankfully, the government isn’t just watching from the sidelines. Through programs like Sakani, Wafi, and other initiatives led by the Ministry of Municipality and Housing, billions are being invested to improve affordability.
In 2024 alone, over SAR 80 billion was allocated to housing support programs. Sakani, for example, helps eligible citizens get subsidized loans, free land, or even ready-made housing units. In 2025, Sakani aims to assist 180,000 new families in securing homes. Mortgage support programs are also helping buyers manage down payments and interest rates. Some citizens can now access fixed-rate mortgages for up to 25 years, making monthly payments more predictable.
So while prices are climbing, support is too.
Affordable Housing Hotspots
Not every affordable home is hiding under a palm tree in Riyadh. Look outside the capital, and you’ll find some surprisingly attractive options. Cities like Al Kharj, Al Majmaah, and Hail are developing fast and still offer housing at 30% to 40% lower prices than Riyadh.
These areas are also seeing infrastructure upgrades in schools, hospitals, and highways. The expansion of public transport and road networks makes it easier for people to live further from the city while staying connected to job markets. Plus, developers are offering gated communities, parks, and smart home features even in these lower-cost zones. Affordability doesn’t have to mean sacrificing quality.
Private Sector’s Role
The government isn’t acting alone. Private developers are stepping up with new ideas. Prefab homes are becoming more popular. These are quicker to build, cheaper to maintain, and can be customized for different family sizes. Micro-units and compact villas are also gaining traction, especially among young professionals and small families. They offer all the basics just with a smaller footprint.
Some projects now offer rent-to-own schemes, giving buyers time to build equity while still living in the property. Developers are also working closely with banks to create financing plans tailored for middle-income buyers.
Bottom line? Creativity is leading to affordability.
In sum
So, homeownership in Saudi Arabia is still possible in 2025. Yes, but it may look a little different than it did a decade ago. It’s about thinking smart. Exploring new neighborhoods. Taking advantage of support programs. And considering alternative housing formats. With government backing, private sector innovation, and better financing options, owning a home is still within reach. It may take some planning and patience.