The non-residential real estate market in Saudi Arabia during the first eight months of 2026 revealed shifts that go beyond simply comparing total sales, as the value and number of transactions declined on an annual basis, coinciding with an increase in the average area sold in most months of the year, reflecting a change in the composition of real estate activity and a variation in the size and quality of transactions carried out.
Sales of non-residential real estate, which includes commercial and agricultural properties, amounted to approximately 78.28 billion riyals from January to the end of August 2026, through 17,089 transactions, compared to 157.31 billion riyals through 22,704 transactions during the same period in 2025, according to the monthly reports issued by the General Authority for Real Estate .
50 % decline in sales value
The value of non-residential real estate sales recorded a decrease of 50.24% during the first eight months of 2026 compared to the same period of the previous year, a difference of approximately 79.03 billion riyals.
However, this comparison was greatly affected by the exceptional rise that the market witnessed in some months of 2025, most notably May, which recorded sales of 57.8 billion riyals, representing about 36.7% of the total value of sales during the first eight months of last year.
Looking at the monthly sales trend, the value reached SAR 10.96 billion in January 2026, compared to SAR 15.55 billion in January 2025, a decrease of 29.521 TP3T. In February, it declined from SAR 21.82 billion to SAR 9.39 billion, a decrease of 56.971 TP3T, while in March it fell from SAR 18.18 billion to SAR 7.34 billion, a decrease of 59.631 TP3T.
April saw a reversal in trend, with sales value rising to SAR 11.24 billion compared to SAR 10.98 billion in April 2025, representing growth of 2.371 TP3T. In May, sales declined from SAR 57.8 billion to SAR 8.47 billion, a decrease of 85.351 TP3T.
In June, the market returned to year-on-year growth, with sales rising to SAR 8.65 billion compared to SAR 6.97 billion, an increase of 24.11 TP3T. Sales then reached SAR 15.72 billion in July, compared to SAR 16.88 billion in the same month of 2025, a decrease of 6.871 TP3T, before falling to SAR 6.51 billion in August compared to SAR 9.13 billion, a decrease of 28.71 TP3T.
July recorded the highest monthly value for non-residential real estate sales during 2026, at 15.72 billion riyals, followed by April at 11.24 billion riyals, and then January at 10.96 billion riyals.
The number of transactions is declining by less than the value of sales.
The decline in the number of transactions was less severe than the decline in the total value, with the number of non-residential property sales transactions reaching 17,089 during the first eight months of 2026, compared to 22,704 transactions during the same period of 2025, a decrease of 24,73%.
The number of transactions in January was 2,346, compared to 3,623 in the same month of 2025, a decrease of 35,251 TP3T. In February, the number reached 2,132 transactions, compared to 3,688, a decrease of 42,191 TP3T, while in March it fell to 1,500 transactions, compared to 3,110, a decrease of 51,771 TP3T.
In April, activity showed a marked improvement, with the number of deals rising to 2,539 compared to 2,297 in April 2025, a growth of 10,54%, the highest monthly number of deals during the first eight months of 2026.
In May, there were 1,938 transactions compared to 2,787 in the same month last year, a decrease of 30,461 TP3T. In June, the number of transactions rose to 2,130 compared to 1,766, an increase of 20,611 TP3T.
July recorded 2,314 deals compared to 3,154 deals in July 2025, a decrease of 26.63%, while the number of deals in August reached 2,190 deals compared to 2,279 deals, a limited decrease of 3.91%, which is the lowest among the months that recorded an annual decrease during the period.
Average deal reveals clear changes
Data on average transaction value reveals clear changes in the nature of the activity, as the average value of non-residential property sold during the first eight months of 2026 ranged between 1.89 million and 2.67 million riyals.
January saw the highest average for the year at SAR 2.67 million, up 4.591 TP3T from January 2025, when it stood at SAR 2.55 million. In February, the average was SAR 2.47 million, compared to SAR 2.97 million, a decrease of 16.831 TP3T.
In March, the average deal reached 2.62 million riyals compared to 2.57 million riyals, an increase of 1.79%, while in April the average declined to 2.27 million riyals compared to 2.85 million riyals, a decrease of 20.15%.
May saw an average of SAR 2.11 million, compared to SAR 2.37 million in the same month last year, a decrease of 10.951 TP3T. In June, the average was SAR 1.89 million, compared to SAR 2.32 million, a decrease of 18.581 TP3T.
As for July, the average transaction value reached 2.03 million riyals compared to 2.96 million riyals in July 2025, a decrease of 31.48%, while in August it reached 2.07 million riyals compared to 2.46 million riyals, a decrease of 15.95%.
These movements reflect a difference in the composition of deals from month to month, especially since the non-residential real estate market includes diverse segments of commercial and agricultural properties, and the value of the deal is affected by the type of property, its location and size.
Property sizes increase in 6 months
In contrast, the area of properties sold provides a different indicator than the value of sales and the number of transactions, as the average area of non-residential property sold increased year-on-year in 6 out of 8 months during 2026.
January saw an average area of 25,762 square meters, compared to 24,183 square meters in January 2025, an increase of 6,531 TP3T. In February, the average jumped to 42,082 square meters from 25,436 square meters, a growth of 65,441 TP3T, the largest increase recorded during the period.
In March, the average area rose to 27,219 square meters compared to 26,758 square meters, an increase of 1.72%, while in April it reached 29,661 square meters compared to 27,152 square meters, with a growth of 9.24%.
May recorded an average area of 26,601 square meters compared to 24,195 square meters in the same month last year, an increase of 9,94%.
In June, the average fell to 31,119 square meters from 35,671 square meters, a decrease of 12,76%, before rising in July to 31,995 square meters from 30,021 square meters, an increase of 6,58%.
As for August, the average area was 28,908 square meters compared to 31,696 square meters in August 2025, a decrease of 8.8%.
Reading the data for the first eight months shows that the decline in sales value alone does not reflect all the changes that the non-residential real estate market in Saudi Arabia has witnessed, as the total value decreased by 50.24%, while the decline in the number of transactions was less at 24.73%.
Meanwhile, April and June saw a simultaneous year-on-year increase in sales value and the number of transactions, while the average area of properties sold increased in 6 out of 8 months.
