Saudi Real Estate Prices Rise 1.3% in Second Quarter as Residential and Agricultural Markets Gain

Saudi Arabia’s real estate prices increased by 1.3 percent year on year in the second quarter of 2026, supported by higher residential and agricultural property values despite continued weakness in the commercial sector, according to the latest figures from the General Authority for Statistics (GASTAT).

The Real Estate Price Index (REPI) showed residential property prices climbed 2.6 percent from the same period a year earlier, while agricultural real estate recorded the strongest annual growth at 11.3 percent. Commercial property prices, however, declined by 3.2 percent, limiting the overall pace of growth.

The residential market was driven mainly by rising land values. Prices for residential plots increased 6.3 percent compared with the second quarter of 2025. Apartment prices rose 1.1 percent, while residential floors registered a modest 0.4 percent increase. Villa prices moved in the opposite direction, falling 9.7 percent, reflecting varying demand across different housing segments.

GASTAT also reported that the Real Estate Price Index increased 3 percent on a quarterly basis compared with the first quarter of 2026.

Residential prices posted the strongest quarterly performance, rising 3.7 percent. Residential land prices gained 6.1 percent, while apartment prices increased 0.9 percent. Villas declined 2.1 percent during the quarter and residential floors slipped 1.1 percent.

The statistics authority said the index is compiled using real estate transaction data supported by an updated methodology aimed at improving market analysis.

According to GASTAT, the system uses geospatial artificial intelligence to process different types of property transactions and combines them with multiple data sources and satellite imagery to provide a more accurate assessment of market trends.

Saudi Arabia’s commercial property market remained under pressure on an annual basis. Commercial land prices fell 3.5 percent and building prices declined 0.6 percent, although prices for exhibitions and retail shops recorded a slight increase of 0.4 percent.

Quarterly figures painted a more positive picture for the commercial sector, with prices rising 1 percent. The increase was supported by stronger commercial land values and a 3.8 percent rise in exhibition and shop prices, while building prices edged down 0.3 percent.

Agricultural real estate continued to outperform all other sectors. Alongside the 11.3 percent annual increase, prices also rose 1.3 percent from the previous quarter, supported by higher agricultural land values.

Property price movements varied across Saudi Arabia’s regions. Al-Jawf recorded the highest annual increase at 10.4 percent, followed by the Northern Borders region at 4.6 percent and Riyadh at 4.2 percent. Makkah posted a modest gain of 0.4 percent.

Several regions recorded annual declines. Hail experienced the largest drop at 10.1 percent, followed by Qassim at 5.4 percent, Madinah at 4.5 percent and Al-Baha at 2.8 percent. The Eastern Province, Tabuk, Aseer, Najran and Jazan also reported lower real estate prices compared with a year earlier.