The real estate market in the Kingdom of Saudi Arabia experienced a quieter start to 2026, with a noticeable decline in the volume and value of real estate transactions in January, according to data from the General Real Estate Authority. This trend reflects a correction phase following several years of rapid growth.
The residential sector recorded around 20,000 transactions, marking a 14% monthly decline and a 38% annual drop. The total value of transactions fell to SAR 17.5 billion. Meanwhile, commercial and industrial transactions decreased by 29% month-on-month, despite an increase in the average size of traded assets, indicating a shift by investors toward larger and higher-quality properties.
In terms of asset types, land recorded the most significant decline, with a sharp drop in both the number and value of transactions. In contrast, the value of villa sales showed noticeable improvement, reflecting a shift in demand toward ready residential units and higher-quality properties rather than speculative land investments.
On the other hand, the rental sector continued to show strong growth. The number of residential rental contracts increased by 17% year-on-year, alongside a significant rise in the value of commercial rents, driven by economic expansion and the growing number of residents.
Geographically, Riyadh led real estate activity, accounting for the largest share of transaction value, followed by Makkah and the Eastern Province. This highlights the continued concentration of real estate activity in the Kingdom’s major cities.
Indicators also point to increasing market maturity, with a rise in licenses for real estate brokerage and consultancy services. At the same time, attention is gradually shifting toward the rental market as the main driver of real estate activity during the current phase.
