Data from the General Real Estate Authority revealed that the Saudi real estate market recorded transactions worth 28.73 billion riyals in May 2026, driven by sales and leasing activity across various real estate sectors. Sales transactions accounted for the largest share of total transactions, valued at 22.61 billion riyals, while the value of lease contracts reached 6.12 billion riyals.
Despite continued real estate activity, the data showed a sharp decline in the value of sales transactions compared to the same period last year. The value of residential sales fell to 14.14 billion riyals, down from nearly 38.7 billion riyals in May 2025, while the value of non-residential sales dropped to 8.47 billion riyals, compared to 57.8 billion riyals a year ago. As a result, the total value of sales transactions fell to less than a quarter of the level recorded in May of last year.
Average Transaction Values
In terms of prices, the decline in the average transaction value was less severe than the drop in total sales, with the average residential transaction value reaching approximately 716,000 riyals, compared to more than 780,000 riyals a year ago. The average value of a non-residential transaction was approximately 2.11 million riyals, compared to 2.37 million riyals during the same period the previous year, indicating that transactions with relatively high values continued to take place despite the decline in trading volumes.
With regard to the areas of properties traded, residential properties remained at nearly stable levels, with the average area of a traded residential property reaching 413 square meters, compared to 409 square meters a year ago. Non-residential properties, however, saw a notable increase in average traded area, reaching 26,600 square meters, compared to approximately 24,200 square meters in May 2025, reflecting increased activity in larger-scale commercial, industrial, and logistics assets.
Flexibility of the Rental Market
In contrast, the rental market greater resilience compared to the sales market, with the total value of leases stabilizing at 6.12 billion riyals. However, the market composition underwent a clear shift, as the value of residential rents fell to 990 million riyals from 3.4 billion riyals a year ago, while the value of non-residential rents jumped to 5.13 billion riyals compared to 2.78 billion riyals during the same period last year.
The number of lease contracts also continued to show significant growth, with the total number of contracts signed exceeding 367,000 in May 2026, compared to approximately 324,000 a year ago. This increase was driven by a rise in residential leases to more than 263,000, along with growth in non-residential leases to about 104,000, reflecting a broadening tenant base and increased activity in the commercial sector.
