Jeddah is Saudi Arabia’s second-largest city and its main commercial port, on the Red Sea. It has a population of around 4.7 million, with roughly 40% expatriates. Historically the main gateway for Hajj pilgrims, it remains the most internationally oriented of Saudi Arabia’s major cities.
The city stretches along 30 km of coastline, forming the Jeddah Corniche. Its historic centre, Al Balad, is a UNESCO World Heritage Site undergoing major restoration supported by the Public Investment Fund. Jeddah Central, a USD 20 billion waterfront project covering 5.7 sq km in the city centre, has Phase 1 planned for completion by the end of 2027.
King Abdulaziz International Airport handled a record 53.4 million passengers in 2025, and Jeddah welcomed 32 million tourists in summer 2025, up 26% year on year. Year-round Umrah pilgrims create consistent demand that supports the short-term rental market.
1.23M
Residential units, Q3 2025
About 7.89%
Average gross yield, citywide, Q1 2026
SAR 4,385
Average apartment price per sqm, citywide, 2025
+25%
Transaction growth, year on year, 2025
Jeddah’s residential market has recorded steady price growth, supported by a 25% year-on-year rise in transaction volumes in 2025. Corniche-facing areas sit at the top end, while North Jeddah offers more accessible off-plan entry points. Citywide averages are from Cavendish Maxwell (2025); waterfront and Obhur ranges are from market data.
Jeddah’s residential market divides into distinct zones, each with a different investor profile, price point and demand driver.
Al Shati. Jeddah’s leading waterfront district along the northern Corniche, with the city’s highest concentration of branded residences, luxury towers and yacht clubs. Prices of SAR 8,000-14,000 per sqm, gross yields of 7-8.5% and short-term occupancy typically of 55-70%.
Al Hamra. Just south of Al Shati, hosting many consulates and diplomatic residences and a main hub for furnished apartments for senior expats and corporate tenants. Home to King Fahd’s Fountain. Prices of about SAR 8,000 per sqm and gross yields of 7-8%.
Obhur. The fastest-growing residential corridor on the northern coastline. North Obhur has resort-style villas, private docks and gated communities, while South Obhur has more accessible sea-view apartment towers. ROSHN’s MARAFY, an 11 km canal-based community designed for over 130,000 residents, is located here. Off-plan prices of SAR 4,000-5,000 per sqm.
Al Rawdah. A well-established inland district near Tahlia Street, attracting corporate expats and families. Steady year-round rental demand and low vacancy. Prices of SAR 4,000-6,500 per sqm and gross yields of 6.5-9.5%.
Al Balad. The UNESCO-listed historic core, with more than 600 coral-stone buildings being restored under a PIF-backed programme. Heritage boutique hotels already operate, and short-stay demand is driven by events and pilgrimage seasons.
Jeddah Central. A USD 20 billion PIF-backed giga-project with a FIFA 2034 stadium, opera house, oceanarium and marina. Around 17,000 residential units are planned, with Phase 1 (45% of the project) due by the end of 2027.
Saudi Arabia’s foreign ownership law came into effect in January 2026, allowing non-Saudi nationals to buy property in designated zones. Unlike Makkah and Madinah, Jeddah is open to all nationalities, making it the main coastal entry point for international investors in western Saudi Arabia.
Ownership is permitted only within REGA-designated zones and is registered through the Saudi Properties platform. In Jeddah these typically include Al Shati, Al Hamra, Al Rawdah and Obhur. Each transaction must be checked against REGA’s official zoning maps.
- Transaction costs (foreign buyers): about 10% of the purchase price, made up of 5% Real Estate Transaction Tax and a 5% REGA disposal fee.
- Income tax: none on rental earnings for individuals.
- Annual holding tax: none for individual owners.
- Rental contracts: must be registered through the Ejar platform.
- Registration: all transactions must be recorded in the Real Estate Registry; unregistered purchases carry no legal protection for foreign buyers.
Saudi Premium Residency: completed residential property valued at SAR 4 million or more (about USD 1.07 million) qualifies buyers under the Real Estate Owner pathway. It covers the buyer and immediate family (spouse, children under 25, parents), with no local sponsor, full work rights and unrestricted entry and exit. It remains valid while the property is owned and free from mortgage. Several completed Corniche projects exceed this threshold.
Much of Jeddah’s activity is concentrated along the 30 km Corniche. Compared to Riyadh, the city has a more coastal rhythm and a more internationally familiar social environment.
- The Corniche: a 30 km Red Sea waterfront promenade with parks, cycling tracks, beaches and restaurants.
- Al Rahma Mosque: the Floating Mosque, which appears to float above the Red Sea at high tide.
- King Fahd’s Fountain: at 312 m, the world’s tallest fountain, lit by 500 spotlights every evening.
- Al Balad: a UNESCO-listed historic district with coral-stone tower houses, artisan markets and boutique heritage hotels.
- Red Sea diving and watersports: direct access to reefs, dive clubs, snorkelling and sailing in warm water year round.
- International schools and healthcare: well-established expat infrastructure, particularly in the northern Corniche corridor.
- Proximity to Mecca: 80 km by road (about 45 minutes) and served by the Haramain High-Speed Railway from the airport.
- Climate: optimal outdoor conditions from October to April.
Jeddah is served by King Abdulaziz International Airport (KAIA), the second-busiest airport in Saudi Arabia and the main international gateway to the western region. Terminal 1 connects directly to the Haramain High-Speed Railway station. By road Jeddah is about 80 km from Mecca and around 950 km from Riyadh, and the northern Corniche districts are roughly 30 km from KAIA (25-35 minutes by car).
Data sources: Global Property Guide Q1 2026; Cavendish Maxwell KSA Residential Market Report 2025; JLL KSA Residential Market Review 2025; Jeddah Central Development Company; UNESCO World Heritage List; REGA. Last reviewed April 2026.