Real estate prices in Saudi Arabia rose again in the second quarter of this year on an annual basis by 1.3%, the fastest since Q2 2025, after two quarters of declines following government decisions for real estate balance.

The rise in Saudi real estate prices coincided with an increase in Riyadh at the fastest pace since Q1 2025, also after two quarters of decline, given the capital's significant impact.

According to the Financial Analysis Unit of Al-Eqtisadiah, the rise in real estate prices comes as the comparison period effect fades, as Q2 represents the fifth quarterly data after the government decisions on real estate balance in the capital issued at the end of last March.

This means that the two quarters of 2026 and 2025 were affected by the decisions, in addition to the gradual return of demand movement after the initial reaction to the government measures, which may have delayed some decisions until the vision became clear and the sector was restructured.

Tue, 20 2026

The annual rise in Saudi Arabia came with an increase in residential real estate prices, which have the largest weight in the index (72.2%), by 2.6%, recording the largest increase since Q1 2025, but it comes after 3 quarters of decline.

The rise in residential real estate was affected by the increase in land prices due to their significant impact, nearly half of the index, recording 6.3% as the highest increase since Q1 2023, which also comes after 3 quarters of decline. Also, apartment prices rose while villa prices saw the only decline, the largest since data collection began in 2021, by about 10%.

On the other hand, commercial real estate recorded its first annual decline of 3.2%, pressured by land, while the rise in agricultural land prices slowed to 11.3%, but it did not affect the index due to its marginal weight of less than 2%.

Al-Jouf leads the rises, and Hail is the most declining.

Al-Jouf recorded the highest increase of 10.4% in Q2 compared to the same period in 2025, while Hail had the largest decline of 10.1%, while prices rose 4.2% in Riyadh at the fastest pace since Q1 2025.

How have real estate prices moved since the balance decisions?

Real estate prices have risen by 1.3% since the issuance of the real estate balance decisions (Q2 2026 compared to Q1 2025), coinciding with stability in residential while commercial and agricultural rose.

The stability of residential real estate prices came with an increase in residential land on one hand, against a decline in the remaining components: villas, apartments, and floors.

Varied movements in regional real estate since the balance decisions

During the last 5 quarters (since the issuance of government decisions), prices declined in 7 out of 13 regions in Saudi Arabia, some with declines approaching 11%.

By administrative regions, Al-Jouf region was the highest with an increase of 10.4%, followed by the Eastern Region and Makkah. In contrast, Hail was the most declining at 11%, then Al-Baha and Madinah. Meanwhile, prices rose 0.9% in the capital Riyadh.

Mon, 20 2026

Government decisions aim to balance the real estate market

The price declines come after government directives to balance the market last March, with a set of measures aimed at addressing the rise in real estate prices in the capital.

Among the measures is lifting the suspension on lands north of Riyadh with a total area exceeding 80 square kilometers, as part of a plan to provide up to 40,000 plots annually for citizens over 5 years, at a price not exceeding 1,500 riyals per square meter, to increase housing supply and reduce price pressures.

The measures also included amending the white land fees to reach 10% annually instead of the previous 2.5%, including vacant properties for the first time, with the aim of moving supply, encouraging development, and reducing investors' retention of unused land. The fees apply to lands and buildings exceeding 5,000 square meters.

Financial Analysis Unit