Saudi Unemployment Falls to 3.1% as Property Rebounds

Saudi Arabia's overall unemployment rate fell to about 3.1% in the second quarter of 2026, signalling continued strength in the labour market, while the property sector staged a rebound in prices after a soft start to the year.

Among Saudi nationals, the jobless rate stood at around 6.4% in the first quarter of 2026. The steady labour figures come alongside a return to price growth in real estate, where the overall Real Estate Price Index rose 1.3% year-on-year and 3.0% compared with the previous quarter — a recovery after a 1.6% annual decline recorded in Q1 2026.

Prices up, transactions down

Residential prices climbed 2.6% year-on-year, driven largely by residential land, which gained about 6.1% to 6.3% over the year and roughly 6.1% quarter-on-quarter. Apartment prices edged up around 1%, while villa prices fell in a range of about 2.1% to 9.7%. Commercial real estate remained weaker overall, down 3.2% year-on-year, though it rose about 1.0% versus the previous quarter, with shops and exhibition spaces up slightly.

Despite firmer prices, deal activity cooled. Nationwide residential transaction values reached roughly SAR 37.67 billion to SAR 38 billion in Q2 2026, down about 27% year-on-year, across more than 41,000 deals — a drop of around 14%. For the first half of 2026, total real estate transaction value across all property types came in near SAR 82.2 billion, about 51.5% lower than a year earlier.

Construction activity stayed robust, with a construction index reading of around 56.3 and contract awards of about SAR 29.5 billion in June 2026 alone. For residents and expats weighing home purchases or rentals, the picture is mixed: prices are firming in some segments, particularly land, while overall market volumes remain well below last year's levels.

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