Saudi Real Estate Rebounds in Q2 2026

Saudi Arabia's real estate market recorded a rebound in the second quarter of 2026, with the national Real Estate Price Index reaching 106.3 points, a rise of 1.3% year-on-year after a dip in the first quarter. On a quarterly basis, the index climbed 3.0%, signalling renewed momentum across housing and land segments.

The recovery was driven largely by residential property, where prices rose 2.6% year-on-year. Residential land led the gains with an increase of around 6.3%, while apartments edged up between 0.9% and 1.1% and residential floors added about 0.4%. In contrast, villa prices fell by roughly 9.7% year-on-year, reflecting a shift in demand toward smaller, more affordable homes. Agricultural real estate posted the strongest jump at 11.3% year-on-year.

The commercial segment remained softer, slipping 3.2% year-on-year. Commercial plots declined about 3.5% and commercial buildings eased around 0.6%, though exhibitions and shops registered a modest rise of 0.4% to 1.0% over the quarter. Quarter-on-quarter, commercial prices ticked up about 1.0%, easing the annual weakness.

Transaction activity told a mixed story. Nationwide residential deal values reached roughly SAR 37.67 to 38 billion in the quarter, down about 27% from a year earlier. Deal counts stood at around 41,000 to 45,700, down about 14% year-on-year but up 9% compared with the first quarter, with total value rising 6% quarter-on-quarter to near SAR 41.9 billion.

For residents and investors, the figures point to a selective recovery rather than a full return to earlier peaks. Housing prices are firming and deal volumes are picking up from the start of the year, while demand favours affordable units. In the office market, Grade A space in Riyadh is near full occupancy, supporting prime office rents. Saudi Living will continue tracking how these trends shape the property landscape for buyers, renters and businesses.

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