A report by General Real Estate Authority for the month of May revealed a significant decline in the value of real estate transactions, as well as a significant drop in liquidity flowing into sales and purchases, while the rental market showed greater resilience in maintaining its activity levels, supported by rising demand for non-residential properties.

A sharp decline in the value of real estate transactions
was recorded the Saudi real estate market recorded transactions with a total value of approximately 22.6 billion riyals in May 2026, compared to nearly 96.5 billion riyals during the same month last year, representing a year-over-year decline of 77%.
This decline was due to reduced activity in the two main sectors. The value of residential transactions fell to 14.1 billion riyals, down from 38.7 billion riyals in May 2025, while the value of non-residential transactions declined to 8.47 billion riyals, compared to approximately 57.8 billion riyals a year earlier.
Despite this decline, the residential sector maintained its position as the market’s largest contributor, accounting for approximately 63% of the total value of real estate transactions, compared to 37% for the non-residential sector.

Volatile Performance During the First Five Months
The data showed that the value of real estate transactions has fluctuated since the beginning of the year. After reaching 28.5 billion riyals in January, it fell to 24 billion riyals in February, then to 19.4 billion riyals in March, before rising to 29.3 billion riyals in April, only to decline again to 22.6 billion riyals in May.

A notable decline in the number of transactions
The decline was not limited to the value of transactions; it also extended to the number of real estate transactions completed. The total number of transactions in May reached approximately 18,900, compared to more than 28,400 transactions during the same period last year, representing a 33% decrease.
The residential sector saw approximately 17,000 transactions, compared to more than 25,600 a year ago, while the number of non-residential transactions fell to about 1,900, compared to 2,800 in May 2025.

Land Accounts for the Largest Share of Residential Transactions
Despite the overall decline in residential activity, land continued to top the list of the most traded assets, with the value of related transactions reaching approximately 7.5 billion riyals, representing more than half of the total value of residential transactions.
Residential apartments ranked second with a value of nearly 2.7 billion riyals, followed by villas at 2.1 billion riyals. All types of residential real estate also recorded a decline in transaction values compared to last year, with the sharpest decline seen in villas, which lost about three-quarters of their transaction value, while the values of apartment and land transactions declined at a relatively slower pace.

Decline Across Various Residential Real Estate Categories
In terms of the number of transactions, land also led the residential market with approximately 9,700 transactions; however, this figure was significantly lower than last year’s levels.
The number of apartment transactions also fell to less than 4,000, while the number of villa transactions declined to about 1,600. The declines affected most property types, with the exception of the "other real estate" category, which recorded slight growth.

Riyadh, Mecca, and the Eastern Province Account for Most of the Market Activity
Real estate activity is concentrated in a limited number of major regions, with the Riyadh region alone accounting for nearly half the value of real estate transactions recorded in May, totaling more than 11 billion riyals.
The Makkah region ranked second with a value of nearly 4.9 billion riyals, followed by the Eastern Province with approximately 3.4 billion riyals.
Collectively, these three regions accounted for approximately 86% of the total liquidity circulating in the Saudi real estate market during the month.
In terms of the number of transactions, Riyadh also topped the list with more than 5,300 transactions, followed by Makkah with about 4,000 transactions, and then the Eastern Province with more than 3,000 transactions.

The rental sector remains active
Unlike the sales market, the rental market showed relative stability in transaction value, with the value of rental transactions in May reaching approximately 6.12 billion riyals, compared to 6.17 billion riyals during the same month of the previous year.
This stability came despite a sharp decline in the value of residential rental transactions, which fell to less than 1 billion riyals after exceeding 3.4 billion riyals a year ago.
In contrast, non-residential lease transactions saw a strong surge, rising to more than 5.1 billion riyals and accounting for approximately 84% of the total value of the rental market, which helped offset the decline recorded in the residential sector.

Growth in the Number of Rental Transactions and Leases
In terms of activity, the number of rental transactions rose to more than 367,000 in May, recording year-over-year growth of 13%. The number of lease agreements signed also rose to approximately 300,000, compared to fewer than 271,000 during the same period last year.
The growth encompassed both the residential and non-residential sectors, with the number of residential leases exceeding 239,000, while the number of non-residential leases reached more than 61,000.

Riyadh Leads the Rental Market
Riyadh continued to lead the rental market in terms of value and number of transactions, recording rental transactions worth 2.5 billion riyals, representing more than 40% of the total market, followed by Makkah with 1.46 billion riyals, and then the Eastern Province with approximately 1 billion riyals.
Riyadh also accounted for the largest number of rental transactions, with more than 118,000, followed by Makkah with about 91,000, and then the Eastern Province with approximately 60,000.