Jeddah

Major Red Sea port city, gateway to Makkah and Madinah. Foreign ownership opens in REGA-designated Jeddah zones from 21 January 2026.

AED 1.90m Median starting price
5 Off-plan projects
Jeddah

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Area Overview

Description

Jeddah is Saudi Arabia’s major Red Sea port city on the western coast, acting as the historic gateway to Makkah and Madinah. Under Royal Decree M/14, effective 21 January 2026, foreign buyers may own property within REGA-designated zones in Jeddah. Residential gross rental yields averaged ~7.89% in early 2026. The city is served by King Abdulaziz International Airport and features the Jeddah Central giga-project by PIF.

Price Analysis

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.

Property type Avg. price per sqm (SAR) Avg. price per sqm (USD) YoY change
Apartments (citywide) SAR 4,385 About USD 1,169 +1.2%
Villas (citywide) SAR 5,185 About USD 1,383 +3.2%
Prime waterfront (Al Shati / Al Hamra) SAR 8,000-14,000 About USD 2,133-3,733
North Jeddah / Obhur (off-plan) SAR 4,000-5,000 About USD 1,067-1,333
Metric Jeddah Dubai (mid-tier)
Entry price per sqm (apartments) About USD 1,169 USD 4,000-5,000
Average gross rental yield About 7.89% (Q1 2026) About 6-7% (2025)
Apartment rent growth (YoY) +2.6% (2025, JLL) About 8-9% (2025)
Sale-to-asking ratio 97-99% About 97-100%
Personal income tax on rentals None None
Foreign ownership Designated zones (2026 law) Designated freehold zones

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.
Route Time Notes
KAIA to Jeddah city centre About 15-20 minutes Haramain High-Speed Railway from the airport station to Al Sulaymaniyah; trains run 6:00 AM to 11:00 PM daily
Jeddah to Mecca About 50 minutes Haramain High-Speed Railway at up to 300 km/h; direct service year round
Jeddah to Medina About 2 hours Haramain High-Speed Railway via King Abdullah Economic City; avoids the 4-hour road journey

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.

Infrastructure

  • Saudi Arabia’s Red Sea commercial capital, offering booming Vision 2030 real estate growth along its Corniche.

    • King Abdulaziz International Airport (JED) (15 min drive) — major international aviation hub with direct global flights

    • Jeddah Corniche Highway (1 min drive) — coastal highway connecting central Jeddah to Obhur

    • Haramain High-Speed Railway Station (20 min drive) — bullet train linking Jeddah to Makkah and Madinah

    • King Abdulaziz Airport: 15 min

    • Jeddah Corniche: 1 min walk

    • Red Sea Mall: 5 min

    • Kingdom / Jeddah Tower Site: 15 min

    • Historic Al-Balad: 15 min

  • Jeddah holds top international schools and universities driving strong executive family demand.

    • American International School of Jeddah (10 min drive) — US curriculum K-12 school

    • Jeddah Prep and Grammar School (10 min drive) — UK curriculum campus

    • King Abdulaziz University (20 min drive) — flagship higher education university in KSA

  • World-class healthcare is anchored by premier tertiary private and specialist hospitals.

    • King Faisal Specialist Hospital Jeddah (10 min drive) — major tertiary government and research hospital

    • International Medical Center (IMC) (10 min drive) — US-affiliated private hospital complex

    • Fakeeh Care Group Hospital (8 min drive) — premier private hospital with 24/7 emergency

  • Home to iconic coastal mosques and the historic Islamic gateways of Al-Balad.

    • Al Rahma Floating Mosque (5 min drive) — world-famous mosque built over the Red Sea waters

    • King Saud Mosque (10 min drive) — landmark grand mosque in central Jeddah

    • Historic Al-Balad Mosques (15 min drive) — ancient 7th-century heritage mosques

  • High commercial real estate demand anchored by luxury malls along the Corniche and UNESCO heritage bazaars.

    • Red Sea Mall (5 min drive) — one of KSA’s largest malls with Danube Hypermarket, luxury brands, and cinema

    • Mall of Arabia (10 min drive) — regional shopping mall with international fashion outlets

    • Historic Al-Balad Souqs (15 min drive) — UNESCO World Heritage markets for gold, spices, and textiles

    • King Abdulaziz Airport: 15 min

    • Jeddah Corniche: 1 min walk

    • Red Sea Mall: 5 min

    • Kingdom / Jeddah Tower Site: 15 min

    • Historic Al-Balad: 15 min

  • Real estate values surge along the 30 km Jeddah Waterfront and private beach resorts in Obhur.

    • Jeddah Waterfront Promenade (1 min walk) — 30 km landscaped coastal park with sculpture parks and cycle tracks

    • Obhur Creek Public & Private Beaches (15 min drive) — premier diving, yachting, and beach club destination

    • King Fahd Fountain (10 min drive) — world’s tallest seawater fountain visible from the Corniche

  • Its role as a historic trading and pilgrimage hub is reflected in everyday life, particularly in its dining scene, which ranges from local seafood to a wide selection of international restaurants and cafés.
    Cultural offerings are also expanding, adding depth to the city’s residential appeal.

    Booming luxury rental yields driven by Formula 1 Grand Prix events, Corniche fine dining, and theme parks.

    • Jeddah Corniche F1 Circuit (5 min drive) — home of the Formula 1 Saudi Arabian Grand Prix

    • Jeddah Corniche Fine Dining Strip (1 min walk) — upscale international restaurants overlooking the sea

    • Atallah Happy Land Park (5 min drive) — major waterfront amusement park

Developers in Jeddah

Luxury Branded Waterfront
DarGlobal
Dubai, UAE

DarGlobal is the international development arm of Saudi Arabia's Dar Al Arkan, founded in 2017 and listed on the London Stock Exchange since 2023. It specialises in ultra-luxury branded residences developed with partners including Trump, Pagani, Aston Martin, Automobili Lamborghini and ELIE SAAB.

20+ Off-plan now
2017 Founded
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FAQ

  • Can foreigners buy property in Jeddah?

    Yes. Under Saudi Arabia's January 2026 foreign ownership law, non-Saudi nationals can buy residential property in designated REGA zones in Jeddah. The most active areas include Al Shati, Al Hamra, Al Rawdah, and Obhur. All purchases must be registered through the Saudi Properties platform.

  • What are property prices in Jeddah?

    Average prices are around SAR 4,385 per sqm for apartments and SAR 5,185 per sqm for villas, according to Cavendish Maxwell's 2025 report. Prime waterfront districts such as Al Shati and Al Hamra range between SAR 8,000 and SAR 14,000 per sqm . Completed branded residences on the Corniche typically start from around AED 8.3M, while off-plan developments begin from around AED 1.76M .

  • What rental yields can buyers expect in Jeddah?

    Gross rental yields average around 7.89% as of Q1 2026, above the national average of 6.84%. Prime Corniche areas typically generate 7–8.5% , while mid-market districts such as Al Rawdah can range from 6.5–9.5%. Short-term occupancy is generally between 55% and 70% , supported by Umrah travel, domestic tourism, and growing international demand. Rental income is tax-free for individual owners.

  • Does buying property in Jeddah qualify for Saudi Premium Residency?

    Yes, for completed properties valued at SAR 4 million (around USD 1.07M) or more. The Real Estate Owner pathway grants long-term residency for the buyer and immediate family, with full work rights and no local sponsor requirement. The residency remains valid as long as the property is owned and unencumbered. Several completed projects along the Jeddah Corniche meet this threshold.

  • What is Jeddah Central and how does it affect the property market?

    Jeddah Central is a SAR 75 billion ($20B) PIF-backed waterfront development covering 5.7 km² in the city centre. It includes a stadium, opera house, oceanarium, marina, 17,000 residential units , and hotel inventory. Phase 1 covers 45% of the site and is scheduled for completion by end of 2027 . The project is a major driver of demand and regeneration in the central waterfront area.

  • Is there tax on property income in Jeddah?

    No. There is no personal income tax on rental income and no annual property tax for individuals in Saudi Arabia. Transaction costs at purchase are around 10% for foreign buyers, consisting of a 5% Real Estate Transaction Tax (RETT) and a 5% REGA fee introduced under the 2026 framework. Saudi nationals pay only the 5% RETT.

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