The Eastern Region recorded the highest increase in real estate prices at 6.9 percent, followed by Najran at 3.5 percent
Saudi Arabia’s real estate price index posted an annual decrease of 1.6 percent in the first quarter of 2026, according to the latest data by the General Authority for Statistics (GASTAT).
The decline was led by the residential sector, which saw a 3.6 percent annual decline in prices. Meanwhile, commercial sector prices recorded positive annual growth of 3.4 percent.
Commercial sector prices rise 3.4 percent in Q1 2026
Real estate prices in Saudi Arabia’s residential sector declined in Q1 2026 compared to the same quarter of the previous year. The sector recorded a decrease of 3.6 percent, driven by a decline in residential land prices by 3.9 percent, apartment prices by 1.1 percent and villa prices by 6.1 percent, while the prices of residential floors increased by 0.6 percent.
In contrast, prices in the commercial sector increased in Q1 2026 compared to the same quarter of the previous year. The commercial sector, which carries a weight of 25.4 percent in the index, recorded an increase of 3.4 percent, driven by the increase in commercial plot prices by 3.6 percent and building prices by 2.6 percent. Meanwhile, the prices of galleries and shops decreased by 3.5 percent.
In the same context, the agricultural sector maintained the pace of annual growth, as the prices of the agricultural sector increased by 11.8 percent, affected by the increase in agricultural land prices by 11.8 percent.
Residential sector posts 0.5 percent quarterly increase
On a quarterly basis, Saudi Arabia’s real estate price index recorded a 0.2 percent decline. The index was affected by the decline in the prices of the commercial sector by 2.3 percent, driven by a decrease in the prices of commercial land by 2.4 percent, the prices of buildings by 1.3 percent and the prices of galleries and shops by 2.9 percent.
On the other hand, the prices of the residential sector increased by 0.5 percent, affected by the increase in the prices of residential lands by 1.7 percent, the prices of apartments by 1.6 percent and the prices of residential floors by 1.0 percent. while the prices of villas decreased by 6.2 percent.
The report also revealed that the prices of real estate in the agricultural sector increased by 3.1 percent compared to the fourth quarter of 2025, driven by the increase in the prices of agricultural lands by 3.1 percent.
Read: Dubai’s rental market hits $8.8 billion in Q1 2026, shows strong stability
Eastern Region records highest price increase in Q1
Regarding the impact of administrative regions on the annual change in the real estate price index, which decreased by 1.6 percent across Saudi Arabia during Q1 of 2026, the Riyadh region witnessed a decrease in real estate prices by 4.4 percent, while the Makkah region witnessed a decrease in real estate prices by 0.7 percent.
Meanwhile, the regions of Al-Baha, Hail, the Northern Borders and AlQassem recorded the highest rates of decline in prices at 9.2 percent, 8 percent, 6.6 percent and 5.1 percent, respectively.
The Eastern Region recorded the highest increase in real estate prices at 6.9 percent, followed by Najran at 3.5 percent, then Tabuk and Asir at 1.5 percent and 1.1 percent, respectively.
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