Saudi Real Estate Prices Rebound in Q2 2026

Saudi Arabia's real estate market showed signs of recovery in the second quarter of 2026, with the national Real Estate Price Index rising 1.3% year-on-year to about 106.3 points (2023 base year), driven mainly by stronger residential activity even as the commercial segment and overall trading volumes cooled.

The residential sector index climbed 2.6% compared with the same period a year earlier. Residential land led the gains, up 6.3% year-on-year, while apartment prices stayed broadly stable within roughly ±1.1%, and residential floors edged up about 0.4%.

The commercial sector moved in the opposite direction, with its index falling 3.2% year-on-year. Commercial land prices dropped 3.5%, commercial buildings declined about 0.6%, while prices for exhibitions and shops rose around 0.4%.

Fewer deals, lower values

Despite firmer prices, activity slowed. Nationwide residential transaction volumes across apartments, villas and land plots fell about 14% year-on-year to slightly above 41,000 deals. Residential transaction values reached roughly SAR 37.7–38 billion, down about 27%. For the first half of 2026, total real estate transactions were valued at around SAR 82.2 billion, roughly half the level recorded a year earlier.

Underlying valuations pointed to a market rotation: land plot values rose about 6.3% nationally and apartment valuations were near-flat to slightly positive, while villa values fell around 9.7% — a sign buyers are shifting toward smaller, more affordable homes.

Demand for prime office and logistics space stayed strong through the quarter, while hotel performance softened and residential trading weakened. For residents and investors, the picture points to steadier prices in key residential segments but a more selective, value-conscious market. Official transaction data is published through the General Authority for Statistics (GASTAT).

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