Makkah, Madinah Property Shows Resilience in 2025

Real estate in Makkah and Madinah is showing notable resilience through 2025, with residential demand climbing even as listed sector valuations pull back from the highs recorded a year earlier,

Makkah's listed real estate sector fell about 10.5% in 2025 after a 33% gain in 2024, while one major Makkah developer's stock rose roughly 39% following a 16.9% decline. In Madinah, the listed sector dropped about 22.7% after a 35.6% rise, with a leading local developer's stock down 46.8% after climbing 54% the previous year.

Beneath the market corrections, on-the-ground activity remained strong. Madinah residential transaction values reached about SAR 3.4 billion in the first half of 2025, up 49% year-on-year, with transaction numbers rising 38%. Makkah residential transaction volumes rose about 16% and values about 14% over the year, pointing to steady underlying demand.

Average apartment prices in Madinah stood at roughly SAR 3,835 with typical apartments valued between SAR 450,000 and SAR 760,000 and villas near SAR 3,500 Makkah's residential stock of about 428,200 units is projected to reach nearly 462,000 by 2028, while Madinah's 353,400 units are expected to grow to about 381,200.

New ownership law

A new Law of Real Estate Ownership and Investment by Non-Saudis (Royal Decree M/14) took effect on 22 January 2026, allowing non-Saudi Muslims — resident and non-resident — and Saudi companies with foreign shareholders to own property in designated zones in Makkah and Madinah, replacing earlier limits to long-term usufruct and inheritance.

Designated investment areas now span selected high-growth zones in Riyadh, Jeddah, Makkah, and Madinah. Potential private capital interest from global high-net-worth individuals is estimated at about US$6.3 billion, with more than 80% expressing interest in owning property in the two holy cities.

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