{"id":104484,"date":"2026-01-22T00:00:00","date_gmt":"2026-01-22T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2026\/01\/22\/real-estate-price-index-declines-for-the-first-time-in-five-years\/"},"modified":"2026-01-22T00:00:00","modified_gmt":"2026-01-22T00:00:00","slug":"real-estate-price-index-declines-for-the-first-time-in-five-years","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2026\/01\/22\/real-estate-price-index-declines-for-the-first-time-in-five-years\/","title":{"rendered":"Real Estate Price Index declines for the first time in five years"},"content":{"rendered":"

Happy THURSDAY, friends.<\/strong> We\u2019re sliding into the weekend with a packed issue, starting with the lowdown on the National Ins. Sector Strategy, which received Cabinet\u2019s blessing earlier this week. <\/p>\n

We also have news of the Public Investment Fund moving forward with its first sukuk <\/strong>issuance of 2026<\/strong>, as well as the latest investment in Humain and what it means for the landscape in Saudi Arabia. <\/p>\n

SIGN OF THE TIMES?<\/strong> The Real Estate Price Index declined \u2014 albeit marginally \u2014 for the first time in five years in 4Q 2025, with the index recording a 0.7% y-o-y decrease during the quarter, according to the latest report (pdf)<\/a> from the General Authority of Statistics. This may be an early signal that aggressive real estate reforms<\/a> by the government last year are paying off.<\/p>\n

The drivers:<\/strong> Although prices in the commercial (up 3.6% y-o-y) and agricultural (up 4.3% y-o-y) sectors continued to grow, the residential sector \u2014 which carries the largest weight in the index \u2014 dipped 2.2% y-o-y. All residential segments dropped, with land prices falling by 2.4%, apartments by 2.5%, villas by 1.3%, and full-floor units by 0.2%.<\/p>\n

Regionally, Hail saw the steepest decline<\/strong> at 8.9% y-o-y, followed by Northern Borders (down 6.8%) and Madinah (down 6.1%), with Riyadh posting a 3% y-o-y decrease. However, some regions reversed the trend and recorded price increases, including the Eastern province, which jumped 4% y-o-y, Makkah (up 2.5%), Tabuk and Jazan (both up 1.1%), and Al Jawf (up 0.4%).<\/p>\n

In memoriam<\/p>\n

The Royal Court announced yesterday the passing of former <\/strong>Prince Faisal bin Turki bin Abdullah<\/strong> Al Saud bin Faisal Al Saud<\/strong>, state news agency SPA<\/a> reported. The funeral prayer will be held at the Grand Mosque in Makkah today after Maghrib. <\/p>\n

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WEATHER<\/strong>- <\/strong>Regions across the Kingdom are seeing temperatures in the single digits, with parts of the Northern Borders region recording below-zero temperatures with frost blanketing the area. Meanwhile, medium to heavy showers are expected across the Kingdom over the weekend.<\/p>\n