The real estate price index in Saudi Arabia rose by 1.3% in the second quarter of this year on an annual basis, according to data from the General Authority for Statistics released on Monday.

The data attributed the increase to a 2.6% rise in residential sector prices, in addition to an 11.3% increase in agricultural sector prices, while commercial sector prices fell by 3.2%.

Tue, 23 2026

Land is the biggest pressure on residential

The residential sector recorded an increase of 2.6%, driven by a 6.3% rise in residential land prices, while apartment and floor prices rose by 1.1% and 0.4% respectively. In contrast, a 9.7% decline in villa prices limited the rise in the residential sector.

The commercial sector saw a decline of 3.2% year-on-year, benefiting from a 3.5% drop in commercial land prices and a 0.6% decrease in building prices, despite a 0.4% increase in showroom and shop prices.

Meanwhile, the agricultural sector continued its annual growth trend, with prices rising 11.3%, driven by the same percentage increase in agricultural land prices.

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Sat, 29 2025

Real estate balance rebalances the market

Last March, Saudi Crown Prince Mohammed bin Salman directed five measures to achieve balance in the real estate sector, following the rise in land and rental prices in Riyadh in recent years.

This included lifting the suspension on selling, buying, subdivision, and partitioning, issuing building permits, and approving plans for lands north of the city, bringing the total area re-enabled in Riyadh to 81 square kilometers. The measures also included the Royal Commission for Riyadh providing planned and developed residential land to citizens up to 40,000 plots annually at prices not exceeding 1,500 riyals per square meter, in addition to the issuance of the new white land fee regulation that included fees of up to 10% on some undeveloped lands, and a decision to fix rental prices in the capital for five years.

Al-Jouf records the highest increase

Property prices in Riyadh rose by about 4.2%, as government decisions for real estate balance in the region limited sharp increases, while Makkah recorded a marginal increase in its property prices of 0.4% despite the start of the foreign property ownership decision. Prices also rose in Medina by 4.5%.

Al-Jouf was the highest region in the Kingdom in terms of property price increase during the second quarter at 10.4%, followed by Hail which recorded 10.1%, while Qassim, Northern Borders, and Al-Baha recorded increases in property prices of 5.4%, 4.6%, and 2.8% respectively.

Tue, 30 2026

Mortgage financing plummets in May

New residential mortgage financing for individuals in Saudi Arabia fell 41% year-on-year in May, reaching 4.4 billion riyals, indicating continued pressure on the pace of housing finance amid rising interest rates and slowing demand for some real estate products.

The decline was driven by a drop in financing for various residential products, with villa financing falling 45% year-on-year to 2.8 billion riyals, still accounting for the largest share of total residential mortgage financing during the month at 63%. This highlights the sensitivity of demand for villas, which are the most expensive among residential products, to interest rates and individual purchasing power.

Financing for residential apartments also fell 31% to 1.3 billion riyals, its lowest level in 34 months, despite apartments being a less costly option compared to villas. For residential land, financing reached 335 million riyals, down 37%, recording the highest rate of decline in 35 months.

Sun, 12 2026

Launch of 'Alternative Financing' to support homeownership

The Saudi Real Estate Development Fund launched its innovative 'Alternative Financing' program, aimed at enhancing the housing finance system in Saudi Arabia by increasing banks' lending capacity, supporting more families to own their first home, according to a statement today.

The 'Alternative Financing' enables the Real Estate Development Fund to provide additional financing to participating banks, increasing their ability to issue mortgage loans, and strengthens the housing support system provided by the Fund by making more liquidity available in the banking sector and expanding opportunities for sustainable homeownership.

The first phase of the program's implementation was launched in cooperation with the Saudi National Bank and the National Housing Company, where the Real Estate Development Fund provides the necessary financing for mortgage issuance operations by the National Bank, while the National Housing Company offers selected units to citizens wishing to own their first home.

Eligible individuals can purchase homes in selected projects of the National Housing Company in Riyadh, Jeddah, and Dammam, with monthly installments starting from only 699 riyals. Customers benefit from instant financing approval, providing a seamless experience from application submission to obtaining financing approval for purchasing a new home.