Saudi Arabia’s property market recorded a noticeable slowdown in the first quarter of 2026, posting its steepest annual decline since 2022, according to figures released by the General Authority for Statistics. The movement reflects ongoing adjustments across different segments of the real estate sector.
Overall, the real estate price index decreased by 1.6% year-on-year, mainly driven by weakness in the residential market, which fell by 3.6%. Within this segment, residential land prices dropped by 3.9%, villas saw a significant decrease of 6.1%, and apartment prices declined by 1.1%, while residential floors slightly increased by 0.6%.
In contrast, not all sectors followed the same downward trend. The commercial segment recorded growth of 3.4%, supported by rising prices in commercial land, retail units, and exhibition spaces. The agricultural sector also performed strongly, with land values rising by 11.8%, showing clear variation in market performance across asset classes.
On a quarterly basis, prices edged down by 0.2%, reflecting continued pressure in both residential and commercial segments.
At the regional level, Riyadh experienced the most pronounced drop, falling by 4.4%. Mecca registered a 0.7% decline despite seasonal demand during Ramadan, while Medina saw a 5% decrease and Qassim also recorded a downward trend. Meanwhile, the Eastern Province stood out as the strongest performer, posting a 6.9% increase, the highest regional growth since 2022.
Overall, the data points to a phase of correction in Saudi Arabia’s real estate market, where price adjustments in housing are being balanced by growth in commercial and agricultural sectors, alongside ongoing government efforts to stabilize the market long term.
