Saudi Arabia Real Estate Falls for First Time Since 2020

Real estate prices in Saudi Arabia dropped 1.6% year-on-year in Q1 2026, compared with a 0.7% fall in Q4 2025. This marked the second consecutive period of decline and the steepest pace since Q3 2019, as residential property prices continued to fall (-3.6% vs -2.2% in Q4), driven by lower prices for residential land (-3.9%), apartments (-1.1%), and villas (-6.1%). Moreover, commercial property prices eased (3.4% vs 3.6%), while the agricultural sector (4.3%) remained unchanged. Among administrative regions, Al-Baha (-9.2%), Hail (-8.0%), the Northern Borders (-5.6%), and Al-Qassim (-5.1%) recorded the steepest declines. In contrast, the Eastern Region (6.9%) posted the highest increase in real estate prices, followed by Najran (3.5%), Tabuk (1.5%), and Asir (1.1%). On a quarterly basis, real estate prices fell by 0.2% in Q1, easing from a 0.4% decline in the previous quarter.

Real estate prices in Saudi Arabia fell by 0.7% year-on-year in Q4 2025, reversing a 1.3% gain in the previous quarter. This marked the first annual decline since Q4 2020, as residential property prices continued to decline (-2.2% vs -0.9% in Q3) amid lower prices for residential land (-2.4%), apartments (-2.5%), villas (-1.3%), and residential floors (-0.2%). In addition, a sharp slowdown was recorded in both commercial property prices (3.6% vs 6.8%) and the agricultural sector (4.3% vs 15.3%). Among administrative regions, the Hail region posted the steepest annual price decline at 8.9%, while the Eastern region recorded the highest increase at 4%. Elsewhere, the Riyadh region saw a 3% decrease. On a quarterly basis, real estate prices fell by 0.4% in Q4, easing from a 1.1% drop in the previous quarter.

Real estate prices in Saudi Arabia increased by 1.3% year-on-year in the third quarter of 2025, easing from a 3.2% rise in the second quarter. This was mainly due to a decline in residential property prices (-0.9% vs 0.4% in Q2) and a sharp slowdown in the commercial property prices (6.8% vs 11.7%). Meanwhile, prices in the agricultural sector rebounded sharply (15.3% vs -0.9%). On a quarterly basis, real estate prices dropped by 1.1% in the third quarter, following a 0.1% rise in the previous period.