Saudi Arabia’s real estate prices rose 1.2% year-on-year in the third quarter of 2026, despite a decline from the previous quarter. Higher residential and agricultural property prices supported annual growth, while commercial real estate continued to weaken.
The General Authority for Statistics (GASTAT) reported the figures in its latest Real Estate Price Index, which tracks property price movements across the Kingdom.
Residential Property Prices Show Mixed Trends
Residential property prices increased by 2.3% compared with the third quarter of 2025. Residential land prices recorded the strongest growth within the sector, rising 4.9%.
Apartment prices increased by 1.7%, while residential floor units gained 0.8%. However, villa prices moved in the opposite direction, falling 7.7% year-on-year.
On a quarterly basis, residential property prices declined by 1.5%. Residential land prices dropped 2.1%, apartment prices fell 0.5%, and villa prices decreased 0.4%.
Residential floor unit prices bucked the trend, rising 1% from the previous quarter.
Commercial Property Prices Continue to Fall
Commercial real estate prices declined by 2% annually in the third quarter. Commercial land prices fell 2.1%, while building prices dropped 1.4%.
Prices for showrooms and retail shops also decreased by 0.9% compared with the same period last year.
The sector recorded a smaller quarterly decline of 0.3%. This indicates that commercial property prices remained under pressure, although the latest quarterly drop was less pronounced than the annual fall.
Agricultural Properties Record Annual Growth
Agricultural property prices increased by 3.9% year-on-year, driven by higher agricultural land prices.
The sector also posted a modest quarterly gain of 0.2%, making it one of the few areas to record growth between the second and third quarters.
Northern Borders Leads Regional Gains
Regional data showed significant differences across Saudi Arabia.
The Northern Borders region recorded the strongest annual increase, with property prices rising 12%. Riyadh followed with growth of 4.6%, while Madinah recorded a smaller increase of 0.3%.
In contrast, Asir experienced the steepest annual decline at 4.3%. Prices also fell by 3.8% in Hail, 3.7% in the Eastern Province and 2.8% in Al-Jouf.
Updated Methodology Improves Price Measurement
GASTAT said its Real Estate Price Index uses actual property transaction data to measure market movements.
The authority has also updated its methodology in cooperation with the Real Estate General Authority, Ministry of Justice and Saudi Central Bank. The revised approach incorporates geospatial artificial intelligence and satellite imagery to improve property classification and data quality.
The latest figures show that annual growth continues in Saudi Arabia’s property market, but performance varies across sectors and regions. The overall quarterly decline highlights the importance of examining individual property categories rather than relying on the national index alone.
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