After years of rapid rises that pushed land and residential unit prices to record levels, the real estate market in the Saudi capital Riyadh is witnessing a remarkable transformation with the entry into force of government regulatory measures, which was clearly reflected in the price levels and volume of transactions during the first quarter of 2026.<DataMinistry of Justice showed that the average prices of residential properties in Riyadh decreased by about 17% during the first quarter of this year, in conjunction with a significant decrease in real estate activity compared to the same period in 2025.
The average price per square meter decreased
According to the data, the average price per square meter traded in real estate deals decreased to about 2218 riyals during the first quarter of 2026, compared to about 2676 riyals per square meter during the same period last year, reflecting a clear decline in the pace of prices after the wave of strong increases witnessed in the capital in recent years.
>The value of residential real estate transactions in Riyadh also recorded a sharp decline, after it fell to about 3.7 billion riyals during the first quarter of 2026, compared to about 20.9 billion riyals in the same period of 2025, in an indication of the slowdown in buying and selling within the market.
The decline extended to the number of real estate transactions, which decreased to only 2597 transactions during the first three months of this year, compared to 14578 transactions during the corresponding period last year. The number of traded properties also declined to 2724 compared to 15590 in the first quarter of 2025, reflecting a widespread decline in the volume of real estate activity in the capital.
The traded areas also recorded a significant decline, reaching about 1.68 million square meters during the first quarter of 2026, compared to about 7.84 million square meters during the same period last year, indicating a decline in transactions in terms of value, size and areas.
Regulatory measures and decisions
This decline follows a series of regulatory measures taken by the state since the beginning of 2025 to rebalance the real estate market in Riyadh, after the significant increases in land prices and rents over the past years.
Crown Prince Mohammed bin Salman, may God protect him, issued during Ramadan before last a package of regulatory decisions related to the real estate market, based on studies prepared by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs on the conditions of the real estate sector in the capital. Regulatory measures were taken within a period not exceeding 90 days to control the relationship between landlords and tenants, in order to achieve balance between the various parties in the real estate market.
In the framework of enhancing oversight and transparency, the General Real Estate Authority and the Royal Commission for Riyadh City were tasked with monitoring and controlling real estate prices in Riyadh and submitting periodic reports on market developments.
The decline comes in the wake of a series of regulatory measures taken by the state since the beginning of 2025 aimed at rebalancing the real estate market in Riyadh.
The decisions included lifting the suspension of real estate transactions from selling, buying, dividing, splitting, issuing building permits and approving plans for areas exceeding 81.48 square kilometers north of Riyadh, distributed in four main areas, to increase the supply and reduce price pressures.The directives also included the Royal Commission for Riyadh City to provide between 10,000 and 40,000 residential plots annually over a period of five years, at prices not exceeding 1,500 riyals per square meter, according to specific controls to ensure that they reach the beneficiaries.
The measures also included amending the white land fees system within a period not exceeding 60 days, to contribute to enhancing the real estate supply and reducing the retention of undeveloped land.
The decisions also included taking regulatory measures within 90 days to control the relationship between landlords and tenants, to achieve balance between various parties in the real estate market.
