Real estate prices fall further, easing 1.6% in 1Q 2026

The Real Estate Price Index extended its decline into 1Q 2026, falling 1.6% y-o-y, according to the latest report (pdf) from the General Authority for Statistics. This follows a 0.7% y-o-y decline in the previous quarter — the first annual drop in five years.

The capital is finally cooling down: Riyadh’s 4.4% price dip signals that the government’s real estate reforms aimed at resolving the affordability problem — such as the White Land Tax and rent freezes — are starting to reduce the property premium.

Regionally, Al Baha recorded the steepest decline in real estate prices, down 9.2% y-o-y, followed by Hail (down 8.0%), the Northern Borders (down 6.6%), and Al Qassem (down 5.1%). Makkah edged down 0.7%. Some regions, however, moved against the broader trend, led by the Eastern Region, which rose 6.9% y-o-y, followed by Najran (up 3.5%), Tabuk (up 1.5%), and Aseer (up 1.1%).

By the sector: The residential sector accounted for the bulk of the downturn, where prices fell 3.6% y-o-y during the quarter. Within the segment, villa prices recorded the steepest drop at 6.1%, followed by land prices (down 3.9%) and apartments (down 1.1%). Floor prices, however, moved slightly higher, edging up 0.6%.

Commercial and agricultural sectors bucked the trend: The commercial sector rose 3.4% y-o-y, supported by a 3.6% increase in commercial land prices and a 2.6% rise in building prices, although showroom prices fell 3.5%. Agricultural property also maintained strong momentum, climbing 11.8% y-o-y in 1Q 2026.

On a quarterly basis, the index slipped 0.2%, driven by a 2.3% drop in commercial property prices, reflecting declines across land, buildings, and retail units. Residential prices, however, rose 0.5%, supported by gains in land, apartments, and floors, even as villa prices fell 6.2%.