Dammam Residential Sales Surge 71% to $947mln in Q1

Dammam is emerging as the standout performer in Saudi Arabia's residential property sector, with quarterly sales values rising 71 per cent to SAR3.6 billion ($947 million) in the first quarter of 2026, according to new insights from real estate advisory firm Cavendish Maxwell.

Strong Momentum in the Eastern Province

Around 2,900 homes were sold in Dammam between January and March, up 41 per cent compared to Q4 2025, when sales values stood at SAR2.1 billion. Measured against Q1 last year, sales volumes in the city were 25 per cent higher, with values up 48 per cent. Despite regional tensions, March 2026 recorded the highest monthly sales figure in Dammam, with 1,265 transactions, underscoring the resilience of the local housing sector.

How Riyadh and Jeddah Compared

Riyadh also recorded quarter-on-quarter growth, with 8,800 sales worth SAR13.4 billion in Q1 2026 — an increase of nearly 12 per cent in volume and more than 4 per cent in value against Q4 2025. However, year-on-year figures told a different story: Riyadh's sales volumes were 64 per cent lower than Q1 2025, with values down 72 per cent, reflecting a return to more balanced activity after elevated levels in late 2024 and early 2025. Jeddah, meanwhile, saw activity moderate, with sales declining 25 per cent quarter-on-quarter and around 30 per cent year-on-year, though investors still spent SAR7.2 billion across 5,800 transactions.

• Dammam: SAR3.6 billion ($947 million) in Q1 sales, up 71% quarter-on-quarter
• Riyadh: SAR13.4 billion across 8,800 sales, up nearly 12% quarter-on-quarter
• Jeddah: SAR7.2 billion across 5,800 transactions, down 25% quarter-on-quarter
• Dammam apartment prices up 4% year-on-year; villas up more than 2%

Also Read: Asas Makeen to Develop 290-Unit Residential Project

Prices and Rents Continue to Rise, But Growth Is Moderating

Sales prices and rental rates rose year-on-year across Riyadh, Jeddah, and Dammam, though the pace of growth is beginning to slow. In Riyadh, apartment prices averaged SAR6,200 per sq m, up 3.7 per cent annually, while villas climbed nearly 7 per cent to SAR5,700 per sq m. In Jeddah, apartments rose almost 2 per cent to SAR4,400 per sq m, and in Dammam, apartment rents rose 3.2 per cent year-on-year, with villa rents up 2.1 per cent.

What's Driving the Market

Kevin Duffield, Director of Built Asset Consulting at Cavendish Maxwell, said it remains "too early to draw definitive conclusions" about the impact of the regional geopolitical situation on the market. He noted that development pipelines are evolving differently across each city, with Riyadh seeing the most new supply in the medium term, while growth in Jeddah and Dammam remains more modest. Duffield added that the medium-term outlook for Saudi Arabia's residential sector remains supported by population growth, sustained government investment, and ongoing economic diversification.

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