Real estate prices in Saudi Arabia continued their downward trend for the second consecutive quarter, with the first quarter of 2026 recording an acceleration in the pace of decline, mainly driven by weak performance in the residential sector, which constitutes the largest component of the index.

According to data issued today by the General Authority for Statistics, this decline is due to the faster drop in residential sector prices, which fell by 3.6% during the first quarter compared to 2.2% in the previous quarter, as a result of a similar decrease in residential land prices, which are considered the most influential factor in market movements. The decline in villa prices also widened to 6.1%, marking the largest drop since the first quarter of 2022, the period when the index methodology was updated.

Riyadh, Saudi Arabia (AFP)

At the geographical level, Riyadh stood out as the most affected region, with the pace of decline accelerating to 4.4% compared to 3% in the previous quarter. In contrast, Makkah recorded its first-ever decline of 0.7%, despite the period coinciding with Ramadan and the Umrah season, which reflects a shift in market direction.

In Al Madinah, prices fell by 5%, while the pace of contraction slowed compared to previous periods. In Al Qassim, the decline accelerated from 2.7% to 5.1%. On the other hand, the Eastern Province continued to record positive performance, with prices growing by 6.9%, the highest level since the second quarter of 2022.