The real estate market in the Kingdom of Saudi Arabia witnessed a notable decline during February 2026, recording a decrease in both the number and value of residential and non-residential transactions compared to the same period in 2025.
Data indicates that the number of residential transactions fell to 18.3 thousand deals, compared to 33.6 thousand deals in February 2025, representing a decline of 45%. Non-residential transactions also dropped to 2.1 thousand deals, marking a decrease of 42%. In terms of financial value, residential transaction values declined to SAR 14.7 billion, down from SAR 33.2 billion, reflecting a 56% decrease. Meanwhile, non-residential transaction values fell to SAR 9.4 billion, a decline of 57%.
Regarding traded areas, residential properties recorded a 4% decrease in average size, reaching 411 square meters. In contrast, the average size of non-residential properties increased significantly by 65%, reaching 42.1 thousand square meters.
Additionally, the average value of residential transactions saw a slight decline of 3%, settling at SAR 760 thousand, while the non-residential sector experienced a sharper drop of 17%, bringing the average transaction value to SAR 2.47 million.
On the other hand, the rental market showed clear growth during February 2026 compared to the same period in 2025. The number of residential rental contracts rose to 266.3 thousand, an increase of 37%, while non-residential rental contracts grew to 65.6 thousand, up by 28%. Furthermore, the number of residential rental transactions climbed to 338.3 thousand, marking a 52% increase, while non-residential rental transactions reached 107.4 thousand, rising by 43%.
In terms of value, residential rental transactions surged to SAR 7 billion, compared to SAR 3.8 billion during the same period last year, achieving a growth rate of 85%. Similarly, the value of non-residential rental transactions increased to SAR 5.8 billion, reflecting a 75% rise.
In the rental market, Riyadh continued to dominate, accounting for approximately 42% of the total value of rental transactions, with a value of around SAR 5.4 billion and more than 145 thousand deals. Mecca ranked second with transaction values reaching SAR 3.3 billion, followed by the Eastern Province with total values of approximately SAR 1.78 billion.
