A Guide to Apartment Prices in Jeddah 2024

Factors Influencing Apartment Prices in Jeddah

In Jeddah, specific factors directly influence apartment prices, highlighting the unique interaction between these elements and the local real estate market.

• Geographical Location: Apartments close to the Corniche and the Red Sea command high values due to their views and proximity to entertainment areas and shopping centers, such as Al Hamra and Al Shati, attracting buyers with their prime location and availability of services.
• Infrastructure and Services: Properties near essential amenities like universities, hospitals, and malls have higher values due to the high demand for living within proximity to these services.
• Quality of Construction and Finishes: Residential projects with luxury finishes and modern architectural designs enhance the value of apartments and attract buyers looking for luxury.
• Supply and Demand Dynamics: Population growth and urban expansion in Jeddah affect real estate prices. Areas like Obhur experience significant demand and price increases due to continuous demand and new real estate projects.
• Future Developments and Major Projects: Major development projects, such as the expansion of King Abdulaziz International Airport and the Jeddah Economic Project, promise to transform significant parts of the city, enhancing its appeal to investors and buyers. These projects contribute to increasing the real estate value of surrounding areas, expected to raise apartment prices in those regions.

These factors form the foundation that determines apartment prices in Jeddah, providing investors and buyers with an understanding of how to evaluate properties in this vibrant city.

Average Apartment Prices in Jeddah

Average apartment prices in Jeddah can vary significantly based on the above factors. Here are approximate estimates for average prices in some of Jeddah's most prominent areas:

• Corniche Area: Due to its proximity to the sea and scenic views, apartment prices in the Corniche area tend to be among the highest in Jeddah. Prices here may start from around SAR 1,000,000 for small to medium-sized apartments and go up to more than SAR 3,000,000 for luxury apartments with large spaces and special views.
• Al Hamra and Al Shati: These upscale areas have apartments priced between SAR 800,000 to SAR 2,500,000, depending on the previously mentioned characteristics.
• North and South Obhur: Areas experiencing rapid real estate growth, offering a variety of options for buyers. Prices here may range from SAR 600,000 for smaller, simpler apartments to SAR 2,000,000 or more for larger, luxury apartments.
• Other Areas in Jeddah: In other residential areas of Jeddah, more affordable apartments can be found, starting from around SAR 300,000 for small to medium-quality apartments, up to SAR 1,500,000 for larger, more luxurious apartments.

It's important to note that these figures are approximate and subject to change based on market developments and other factors. Therefore, conducting thorough research and consulting with real estate market specialists when looking for an apartment to buy in Jeddah is always advised.

Best Areas in Jeddah to Buy Apartments

Jeddah is filled with areas ideal for buying apartments, including:

1. Corniche: An upscale area on the waterfront, known for its breathtaking views and proximity to many essential facilities.
2. Al Hamra and Al Shati: Areas are known for their proximity to shopping centers and services, housing luxury properties.
3. North and South Obhur: Rapidly developing areas offering a variety of apartment options.
4. Al Rawdah: Considered an upscale area in Jeddah, housing a range of luxury villas and modern apartments. Its proximity to major shopping centers, international schools, and hospitals makes it ideal for families seeking a high standard of living.
5. Al Mohammadiyah: Known for its luxury residences and large villas, this area is highly sought after due to its proximity to important places like the Arab Open University and several upscale shopping centers.
6. Al Naeem: Offers a mix of tranquility and proximity to essential services and entertainment. It hosts many new residential projects offering apartments with modern designs and comprehensive facilities.
7. Al Safa: Known as a quiet residential area, it offers a wide range of apartments suitable for families, close to several schools and shopping centers, plus easy access to Jeddah's main roads and other areas.
8. Al Faisaliyah: One of Jeddah's most distinguished areas, combining luxury living with a central location. It's close to the waterfront, offering stunning views to its residents, along with easy access to key services and commercial areas.

These areas provide varied options for buyers, whether they are looking for luxury and comfort or peace and privacy

Return on Investment in Jeddah Apartments

While exact figures may not be available due to market fluctuations and significant differences between various areas within Jeddah, some general estimates can be provided to illustrate the picture.

• Luxury areas like the Corniche and Al Mohammadiyah may offer high rental rates due to excellent locations and high demand. Annual rents here may range from SAR 100,000 to SAR 250,000 for luxury apartments, meaning the return on investment could be between 4% to 6%, depending on the purchase price and administrative costs.
• Medium areas like Al Safa and Al Naeem, where annual rents range from SAR 60,000 to SAR 100,000 for medium-sized apartments. This could yield a return on investment ranging between 5% to 7%, depending on various factors such as maintenance and other costs.
• Emerging areas like Obhur may offer opportunities for a higher investment return due to lower purchase prices compared to the significant potential for value increase. Here, rents may range from SAR 40,000 to SAR 80,000 annually, with the possibility of achieving a return on investment that could exceed 8% if purchased at good prices and efficiently managed.

These numbers are estimates, and investors should conduct a comprehensive and detailed analysis considering the specific factors of each property and area to determine the actual return on investment.

How Imtilak Global Can Help You Buy an Apartment in Jeddah

Imtilak Global, with its extensive experience in the real estate market and strategic relationships with top real estate developers, offers its clients a unique opportunity to choose the best apartments in Jeddah at competitive prices. Our company excels in providing a wide range of options that suit different tastes and budgets, with an emphasis on delivering optimal value to buyers. Through our deep understanding of local market dynamics and current trends, Imtilak Global ensures that our clients can make informed decisions, benefiting from accurate analyses and professional advice.