Saudi Real Estate Prices Rebound 1.3% in Q2 2026

Saudi Arabia's property market showed signs of recovery in the second quarter of 2026, as the national Real Estate Price Index climbed to 106.3 points — a 1.3% rise year-on-year from 105.0 points in the same quarter of 2025, and roughly 3.0% higher than the first quarter of 2026.

The rebound marks a turnaround from the first quarter of 2026, when the index had fallen 1.6% year-on-year. The residential sector led the gains with a 2.6% annual increase, while agricultural prices jumped 11.3%. The commercial sector, by contrast, declined 3.2% year-on-year, though it edged up 1.0% on the quarter.

Within housing, residential land prices rose between 6.1% and 6.3% quarter-on-quarter and apartment valuations added roughly 0.9% to 1.1%. Villa values, however, fell about 9.7% year-on-year, reflecting a shift in demand toward smaller and more affordable units.

Fewer deals, higher prices

The price recovery came alongside a sharp drop in activity. Nationwide residential transaction values reached SAR 37.67 billion in Q2 2026, down 26.9% year-on-year, with deal counts falling 14.2%. For the first half of 2026, total real estate transactions were valued at SAR 82.2 billion — down from SAR 169.4 billion a year earlier, a 51.5% decline.

The figures arrive as non-oil activity continues to hold up, with the wholesale and retail trade operating revenues index rising 3.2% year-on-year in the second quarter.

For residents and investors, the real estate transaction tax framework remains at 5% of the property's disposal value, payable by the seller. A fixed 2% non-Saudi ownership fee was confirmed on 3 July 2026, and 21 formal exemptions apply, including certain family transfers, inheritance, and some government and charitable transactions.

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