A recent report by JLL revealed that Riyadh recorded the largest decline in the volume of residential transactions, after the number of real estate transactions fell to more than 8,600 transactions during the first quarter of this year, an annual decline of 54.4%. Jeddah also witnessed a clear decline in activity, with the number of transactions falling to about 3,800 transactions, a decrease of 51.8% compared to the same period last year.
As for the Eastern Province, Dammam recorded about 1,400 residential transactions during the first quarter, a yearly decrease of 18.6%, while Khobar recorded 702 transactions, down by 22.5%.
The residential market is transforming
The report indicated that <a href="https://amlak.The residential sector in the Kingdom is currently undergoing a transformation, with prices starting to move in line with actual demand levels rather than speculative-driven hikes, with performance varying between cities and real estate sectors.
In Riyadh, villa prices continued to record limited increases of 2.6% year-on-year, while apartment prices came under clear pressure after falling by 10.8%, reflecting a change in buyers" attitudes and purchasing power.
On the other hand, Jeddah showed a more positive performance, with apartment prices rising by 4% compared to last year, and villa prices rising by 3.8%, supported by continued demand and improved activity levels in some neighborhoods and residential projects.
Price pressures in Dammam and Khobar
In contrast, price pressures continued in Dammam and Khobar, as the market continued to face challenges related to slowing demand and reduced activity in the residential sectors of apartments and villas.
Despite slowing sales, the report emphasized that the rental market in Riyadh and Jeddah continues to witness moderate growth, supported by continued strong demand and limited vacant units, which has contributed to maintaining relatively stable rental levels.
Rental prices in both Riyadh and Jeddah are still growing moderately, supported by continued strong demand and limited vacancy, which has contributed to maintaining relatively stable rental levels.
On the supply side, the total inventory of residential units in Riyadh reached 2.19 million units during the first quarter of 2026, with 20.7 thousand new units expected to be added by the end of this year.
In Jeddah, the residential inventory reached 1.24 million units, with 15.In Dammam, the residential market inventory reached about 740,000 units, with 7.9 thousand new units expected to be added during the coming period, as part of the continued expansion plans for residential projects in the Eastern Province.
Dammam's residential market inventory reached about 740,000 units, with 7.9 thousand new units expected to be added during the coming period.
