RIYADH: Saudi Arabia’s real estate price index declined by 1.6 percent in the first quarter of this year compared to the same period in 2025, driven by a softening residential market that offset stronger commercial sector gains, official data showed.
According to the General Authority for Statistics, the Kingdom’s real estate price index stood at 103.3 in the first quarter, representing a decline of 0.2 percent compared to the previous three months.
The residential sector, which carries the greatest weight in the index, fell 3.6 percent year on year, led by a 3.9 percent drop in residential land prices.
This comes as the government moves to curb rising property prices, especially in Riyadh, with the cabinet introducing new regulations in September aimed at stabilizing rents in the capital.
These measures include a five-year freeze on rent increases for both residential and commercial properties within Riyadh’s urban boundaries.
“The sector (residential) recorded a decrease of 3.6 percent, driven by a decline in residential land prices by 3.9 percent, apartment prices by 1.1 percent and villa prices by 6.1 percent, while the prices of residential floors increased by 0.6 percent,” said GASTAT in its latest report.
Compared to the final three months of 2025, real estate prices in the residential sector rose by 0.5 percent in the first quarter of this year, driven by a 1.7 percent increase in residential land prices.
Strengthening the real estate sector is a key pillar of Saudi Arabia’s Vision 2030 agenda, as the Kingdom seeks to diversify its economy away from oil and establish itself as a global hub for business and tourism.
The Real Estate General Authority expects the property market to reach $101.62 billion by 2029, with an anticipated compound annual growth rate of 8 percent from 2024.
In the commercial sector, prices rose 3.4 percent in the first quarter, driven by a 3.6 percent increase in commercial land plot prices.
“The commercial sector, which carries a weight of 25.4 percent in the index, recorded an increase of 3.4 percent, driven by the increase in commercial plot prices by 3.6 percent, building prices by 2.6 percent, while the prices of galleries and shops decreased by 3.5 percent,” said GASTAT.
Compared to the previous quarter, real estate prices in the commercial sector decreased by 2.3 percent in the first quarter of this year, driven by a decline in the prices of commercial land by 2.4 percent and building prices by 1.3 percent.
With regard to the regional breakdown, the Riyadh region recorded a 4.4 percent decline in real estate prices, while prices in the Makkah region fell by 0.7 percent.
In Al-Baha, real estate prices declined by 9.2 percent, followed by Hail at 8 percent, the Northern Borders at 6.6 percent and Al-Qassim at 5.1 percent.
The Eastern Region recorded the highest increase in real estate prices at 6.9 percent, followed by Najran at 3.5 percent, Tabuk at 1.5 percent and Asir at 1.1 percent.
