Saudi Real Estate Prices Grow 1.2% and September Deals Drop 17%
Real estate price growth in Saudi Arabia slowed to 1.2% in the third quarter, while the value of deals in September fell 17% to around 27.8 billion riyals.
Real estate price growth in Saudi Arabia slowed to 1.2% year-on-year in the third quarter of 2026, compared to 13.1% in the same quarter of 2022, representing an 11.9 percentage point drop over four years, according to Al-Watan newspaper's reading of the Real Estate Price Index data.
The general price index recorded 2.5% in 2023, 2.6% in 2024, and 1.3% in 2025 before reaching 1.2% in the third quarter of 2026. The slowdown was not limited to the general index, but extended to a clear contrast in the performance of real estate sectors.
In a parallel indicator of declining market activity, the value of real estate deals in September 2026 decreased by 17% annually to about 27.8 billion riyals, compared to 33.6 billion riyals in the same month of 2025, according to data from the General Real Estate Authority. The value of residential transactions dropped 19% to 14.9 billion riyals, while non-residential deals fell 15% to 12.8 billion riyals.
The commercial sector recorded a remarkable shift, moving from an annual growth of 6.8% in the third quarter of 2025 to a 2% decline in the third quarter of 2026, a difference of 8.8 percentage points, after growing 6.2% in 2023, 6.4% in 2024, and 6.8% in 2025. In contrast, the residential sector returned to growth at 2.3% after a 0.9% decline in the corresponding quarter of 2025, while growth in the agricultural sector fell from 15.3% to 3.9%, losing 11.4 percentage points. The reading did not include specific reasons for these changes.
What do these terms mean?
Real Estate Price Index: An index that measures the change in real estate prices over time, used to compare market performance across different periods.
Real Estate Transactions: Officially recorded real estate buy and sell transactions, measured in value by riyals and in quantity by the number of transferred properties.
Percentage Point: A unit measuring the difference between two percentages; for example, the difference between 3% and 5% is two percentage points.
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