Average Price of a House in Jeddah, Saudi Arabia: Current Market Trends and Insights

Jeddah, a bustling city in the western region of Saudi Arabia, has been experiencing significant growth in the real estate market. With its strategic location and rapid economic development, Jeddah has become a popular destination for local and foreign investors looking to invest in the housing market. As a result, the average price of a house in Jeddah has risen in recent years.

According to recent data, the average house price in Jeddah is around SAR 1.5 million. However, the price can vary depending on several factors, such as location, size, and amenities. For instance, a house in a prime location, such as the Al Hamra district, can cost significantly more than a house in a less desirable location. Also, houses with larger living spaces and modern amenities like swimming pools and gyms are more expensive.

Despite the rising prices, the real estate market in Jeddah remains attractive to investors due to its potential for long-term growth. With the city’s ongoing development plans and the increasing demand for housing, the average price of a house in Jeddah is expected to continue to rise in the coming years.

Overview of Jeddah’s Housing Market

Current Market Trends

Jeddah’s housing market has been experiencing steady growth over the past few years. According to recent reports, the average villa price in Jeddah increased by 1% during Q2 2023, while the average apartment price increased by 2% during the same period. The Al Shatea and Al Murajan districts of Jeddah have the highest average villa prices, with an average price of SAR 8,000 per square meter.

The housing market in Jeddah is expected to continue to grow in the coming years, with the city’s population growing by more than 1.4% annually in 2022. This population growth is expected to lead to an increase in demand for housing, which will likely lead to a growth in property prices.

Comparison with Riyadh and Dammam

Unlike other major cities in Saudi Arabia, such as Riyadh and Dammam, Jeddah’s housing market is relatively affordable. According to recent reports, the average villa price in Riyadh and Jeddah was SAR 5,763 and SAR 5,723 per square meter, respectively. Meanwhile, the average villa price in Khobar and Dammam was SAR 1,080 per square meter, an increase of 8.0% in the year to Q1 2023.

Overall, Jeddah’s housing market is a good option for investing in property in Saudi Arabia. With steady growth and relatively affordable prices, Jeddah is a promising location for anyone looking to buy or sell property in the region.

Average House Prices in Jeddah

Jeddah is the second-largest city in Saudi Arabia and one of the most popular destinations for expats. The average price of a house in Jeddah varies depending on the area, size, and property type. Here is a breakdown of the average house prices in Jeddah:

Price per Square Feet

The average price per square footfoot to buy an apartment in Jeddah city center is SAR 2,200, while the price per square footfoot outside the city center is SAR 1,400. These prices may fluctuate depending on the neighborhood, amenities, and other factors.

1 Bedroom Apartment Prices

The average price of a 1-bedroom apartment in Jeddah ranges from SAR 350,000 to SAR 500,000. The prices may fluctuate depending on the location, amenities, and other factors. Some of the popular neighborhoods for 1-bedroom apartments in Jeddah include Al Hamra, Al Baghdadiyah Al Gharbiyah, and Al Andalus.

3 Bedroom Apartment Prices

The average price of a 3-bedroom apartment in Jeddah ranges from SAR 700,000 to SAR 1,500,000. The prices may fluctuate depending on the location, amenities, and other factors. Some of the popular neighborhoods for 3-bedroom apartments in Jeddah include Al Rawdah, Al Zahra, and Al Salamah.

In conclusion, the average house prices in Jeddah may vary depending on several factors such as location, size, and type of property. It is advisable to do thorough research and pursue professional advice before taking any steps in real estate investment in Jeddah.

Cost of Living in Jeddah

Jeddah is one of the most popular cities in Saudi Arabia, with a diverse culture and a high standard of living. The cost of living in Jeddah is relatively affordable compared to other major cities worldwide. The following subsections provide a breakdown of the average costs of utilities and services, food and groceries, and transportation and connectivity in Jeddah.

Utilities and Services

The cost of utilities and services in Jeddah is relatively low. The average electricity, gas, and water cost for an 85m2 apartment is around SAR 300 per month. The cost of internet services is also affordable, with an average cost of SAR 200 per month for a 10 Mbps connection. Additionally, the cost of a cappuccino in Jeddah is around SAR 12, while a liter of milk costs around SAR 4.

Food and Groceries

The cost of food and groceries in Jeddah is also relatively low. The average cost of a dozen eggs is around SAR 8, while a kilogram of local cheese costs around SAR 50. A kilogram of apples costs around SAR 8, while a kilogram of tomatoes costs around SAR 4. Additionally, a kilogram of potatoes costs around SAR 3, while a loaf of bread costs around SAR 2.5.

Transportation and Connectivity

The cost of transportation and connectivity in Jeddah is also affordable. A one-way ticket on local transport costs around SAR 3, while a monthly pass costs around SAR 80. The cost of a liter of gasoline is around SAR 2, while a pack of cigarettes costs around SAR 20.

Overall, Jeddah is an affordable city to live in, with a relatively low cost of living compared to other major cities worldwide.

Housing and Rental Market

Renting in Jeddah

Jeddah is a popular city in Saudi Arabia that offers residents a range of housing options. The rental market in Jeddah is competitive, with prices varying depending on the location, type of property, and amenities. Rent per month for a one-bedroom apartment in the city center can vary from SAR 2,000 to SAR 5,000, while rent for a similar apartment outside the city center can vary from SAR 1,500 to SAR 3,500. Luxury apartments are also available in Jeddah, ranging from SAR 6,000 to SAR 15,000 per month.

Apartment Sales and Availability

Apartments for sale in Jeddah are widely available, with various options to suit different budgets. The median price per square meter for an apartment in Jeddah is SAR 7,000, with prices varying depending on the location and amenities. Studio apartments are available for sale in Jeddah, ranging from SAR 150,000 to SAR 400,000. One-bedroom apartments are also available, ranging from SAR 250,000 to SAR 800,000.

Villas are also available for sale in Jeddah, with prices ranging from SAR 1 million to SAR 15 million. The average price of a villa in Jeddah is SAR 5 million. The availability of apartments along with villas for sale in Jeddah is high, with many new projects being made to meet the growing demand for housing in the city.

Real Estate Investment in Jeddah

Jeddah is the commercial capital of Saudi Arabia and a growing market for real estate investment. With its unique position along the Red Sea, diverse population, and status as a major urban center, Jeddah offers investors a blend of cultural, economic, and lifestyle opportunities.

Investor Opportunities

Investors looking to enter the Jeddah real estate market have a range of opportunities to consider. The residential property market is one of the city’s most active, with various housing options available to suit different budgets and preferences. Luxury residential properties in areas like Al Rawdah and Al Salamah offer high-end living spaces and a high return on investment.

Commercial real estate is another opportunity for investors in Jeddah. The city is home to several major corporations and business centers, making it a prime office and retail space location. The tourism industry is also growing, with various hotel and resort developments underway.

Residential Property Market

The Jeddah residential property market offers a range of options for buyers and renters. According to Numbeo, the median price for the square meter of residential properties in Jeddah is SAR 8,000. The mortgage affordability index is 0.52, indicating that it is relatively affordable to purchase a property in Jeddah.

Some of the most popular residential areas in Jeddah include Al Hamra, Al Rawdah, and Al Salamah. These areas offer various housing options, including apartments, villas, and townhouses. The median cost of a two-bedroom apartment in Al Hamra is around SAR 1.2 million, while a four-bedroom villa in Al Salamah can cost upwards of SAR 5 million.

Overall, the Jeddah real estate market offers various opportunities for investors and homebuyers alike. With its growing economy, diverse population, and unique location, Jeddah is an attractive destination for those looking to invest in the housing market.

Financing a Home Purchase

Purchasing a home in Jeddah, Saudi Arabia, can be a major investment, and financing options are available for those who require assistance. In this section, we will discuss the mortgage options and interest rates available for homebuyers in Jeddah.

Mortgage Options

Various mortgage options are available for those purchasing a home in Jeddah. The Saudi government operates a subsidized loan scheme for eligible Saudi nationals registered with the Housing Ministry. Banks loan 90%-100% of the total price of the property purchase. They will lend SR 500,000 and up to SR 5,000,000, repayable in 5 to 25 years. This scheme is only available to Saudi nationals.

Expats can also obtain home financing through commercial banks in Saudi Arabia. The government has only permitted mortgages since 2012, and there are still limited options for expats. However, commercial banks offer mortgage loans to expats, and the maximum amount available is SAR 3,000,000.

Interest Rates and Terms

Mortgage interest rates in Saudi Arabia vary depending on the lender and the type of loan. The interest rates on mortgages in Saudi Arabia are usually fixed for the entire duration of the loan. The interest rates range from 2.5% to 6.5%, depending on the lender and the type of loan.

The terms of mortgage contracts in Saudi Arabia are usually between five and twenty-five years. The length of the loan term will hinge on the borrower’s ability to pay back the loan and the lender’s policies. The longer the loan term, the decrease the monthly payments, but the more interest the borrower will pay over the life of the loan.

In conclusion, financing options are available for those purchasing a home in Jeddah. Expats can obtain home financing through commercial banks, while Saudi nationals can use the government’s subsidized loan scheme. Mortgage interest rates in Saudi Arabia are usually fixed for the loan’s duration, and the mortgage contracts’ terms range from five to twenty-five years.

Demographics and Housing Demand

Population Growth

Jeddah, the second-largest city in Saudi Arabia, has experienced significant population increase over the past few decades. According to the Saudi Arabian General Authority for Statistics, the population of Jeddah was estimated to be around 4.3 million in 2020, up from 2.8 million in 2010. This population growth has led to a growth demand for housing in the city.

Family Homes and Single Residences

Most homes in Jeddah are family homes, with a smaller percentage being single residences. Family homes are typically larger and more expensive than single residences, making them less accessible for lower-income families. However, there are still options available for those looking for more affordable housing in the city.

The housing market in Jeddah is diverse, with various selections available to suit different budgets and preferences. The homeownership rate in Saudi Arabia is relatively high, with around 70% of households owning their homes. However, there is also a growing demand for rental properties, particularly in urban areas like Jeddah.

Residential transactions in Jeddah are typically conducted through the Saudi Arabian Ministry of Justice, which provides transaction-based data to construct a housing price index. According to a survey directed by Knight Frank, a global real estate negotiation firm, the residential demand preferences of owner-occupiers, renters, and those living with their families across Saudi Arabia’s major cities are diverse. This suggests that there is significant demand for various housing options in Jeddah, including rental and owned properties.

Overall, the housing market in Jeddah is dynamic and assorted, with a range of options available to suit different budgets and preferences. As the city continues to experience population growth, demand for housing is most likely to remain high, making it an attractive market for investors and homebuyers.

Lifestyle and Housing Choices

Regarding housing in Jeddah, Saudi Arabia, there are various options available for people to choose from depending on their budget, lifestyle, and cultural preferences. The price of housing in Jeddah can vary depending on the type of housing, area, and amenities available. In this section, we will explore some of the cultural influences on housing and modern living spaces in Jeddah.

Cultural Influences on Housing

Cultural influences significantly influence the type of housing people choose in Jeddah. Family is essential to Saudi Arabian culture, and most people prefer to live with their families. As a result, there is a high demand for larger homes, such as villas, that can accommodate extended families. Additionally, privacy is highly valued in Saudi Arabian culture, and many people prefer to have separate living spaces for men and women.

Modern Living Spaces

In recent years, there has been a shift towards more modern living spaces in Jeddah. Many new apartment complexes and gated communities have been built to fulfill the growing demand for modern amenities and facilities. These modern living spaces offer a range of amenities, such as pools, gyms, and recreational areas. However, these modern living spaces can be more expensive than traditional housing options.

Overall, the housing market in Jeddah offers various selections for people to choose from depending on their lifestyle and budget. From traditional villas to modern apartments, there is something for everyone. However, it is essential to consider cultural influences and personal preferences when making housing choices in Jeddah.

Consumer Goods and Housing Affordability

Clothing and Apparel

The cost of clothing and apparel in Jeddah is generally affordable. A pair of jeans costs around SAR 150, while a summer dress can be purchased for approximately SAR 200. Leather business shoes are also reasonably priced at around SAR 400. These prices are comparable to those in other major cities around the world.

Vehicle Costs

Vehicle costs in Jeddah can be quite expensive. A brand new Volkswagen Golf costs around SAR 100,000. However, more affordable options are also available for those on a budget. Used cars can be purchased for much less, starting at around SAR 20,000.

Regarding housing affordability, Jeddah is generally considered affordable. According to recent surveys, the average monthly rent for a one-bedroom apartment in the city center is around SAR 2,500. The median monthly rent for a 3-bedroom apartment in the same area is around SAR 6,000.

Overall, the cost of living in Jeddah is relatively affordable, with reasonably priced consumer goods and housing. However, it is important to note that prices can vary depending on area and individual circumstances.

Frequently Asked Questions

What is the range of house prices in Jeddah for various property types?

The range of house prices in Jeddah varies based on the property type. For example, apartments can range from SAR 300,000 to SAR 2 million, while villas can range from SAR 1.5 million to SAR 15 million. The cost range also depends on the location of the property and the amenities that it offers.

How do the prices for luxury villas in Jeddah compare to standard houses?

Luxury villas in Jeddah are typically more expensive than standard houses due to their larger size and luxurious amenities. A luxury villa can range from SAR 5 million to SAR 15 million, while a standard house can range from SAR 1.5 million to SAR 5 million.

What are the current trends for residential properties in the Jeddah real estate market?

The Jeddah real estate market for residential properties has been relatively stable in recent years. The market has seen a slight decrease in prices due to the influence of the COVID-19 pandemic, but prices have remained relatively stable overall. The demand for residential properties in Jeddah is high, and affordable housing is in short supply.

Is there a significant difference between the cost of living in Jeddah and other Saudi cities?

The cost of living in Jeddah is generally higher than in other Saudi cities due to its status as a major commercial and industrial hub. However, the cost of living in Jeddah is still relatively cost-effective compared to other major cities in the region.

What legal considerations should foreigners be aware of when purchasing property in Jeddah?

Foreigners looking to purchase property in Jeddah should be aware of the legal requirements and restrictions that apply to non-Saudi nationals. Foreigners are, on average, not allowed to own property in certain areas of the city, and there are restrictions on the types of properties foreigners can purchase. It is recommended that foreigners negotiate with a local real estate lawyer before making any property purchases in Jeddah.

How does the average cost of renting a house in Jeddah compare to owning one?

The average cost of renting a house in Jeddah is generally lower than that of owning one, especially when factoring in the additional costs associated with home ownership, such as maintenance and property taxes. However, owning a home in Jeddah can be a good investment opportunity for those looking to build long-term equity.

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