The residential land market in Saudi Arabia entered the first eight months of 2026 with a clear decline in the value of transactions and the number of deals, coinciding with the average transaction value falling to its lowest level during the period, while the traded areas remained close to their previous levels.
Data from the General Authority for Real Estate shows that the value of residential land purchase transactions reached SAR 64.04 billion during the period from January to August 2026, compared to SAR 112.53 billion during the same period in 2025, a decrease of SAR 43.091 billion. At the same time, the number of transactions declined from 127,289 to 86,431, a decrease of SAR 32.11 billion.
In August specifically, the average value of a residential land purchase transaction decreased to about 525.8 thousand riyals, compared to 593.4 thousand riyals in the same month of last year, a decrease of 11.39%, thus recording the lowest average during the first eight months of 2026.
This decrease does not come in parallel with a similar change in the size of the traded land; the average land area in August was 546 square meters, compared to 552 square meters in August 2025, a limited decrease of only 1.09%.
Trading value decreased by 48.5 billion riyals
The residential land market saw a decline in transaction value during seven of the first eight months of 2026, with only June recording an increase compared to the same month of the previous year. The year began with transactions totaling SAR 9.17 billion in January, compared to SAR 18.24 billion in January 2025, a decrease of 49.731 TP3T. In February, transaction value fell to SAR 7.61 billion, compared to SAR 20.06 billion, a decrease of 62.061 TP3T.
March recorded the largest annual decrease in the value of deals during the period, after trades amounted to 5.87 billion riyals, compared to 24.3 billion riyals a year earlier, a sharp decline of 75.84%.
In April, the decline slowed, with transactions totaling SAR 9 billion compared to SAR 9.79 billion, a decrease of SAR 8.071 TP3T. Transactions then fell further in May to SAR 7.47 billion from SAR 11.63 billion, a decrease of SAR 35.771 TP3T. June was the only month to record growth, with residential land purchase transactions rising to SAR 7.29 billion, compared to SAR 6.98 billion in June 2025, an increase of SAR 4.441 TP3T.
Trading volumes declined again in July, registering SAR 9.82 billion compared to SAR 11.58 billion, a decrease of 15.21 TP3T. In August, the value of transactions reached SAR 7.81 billion compared to SAR 9.95 billion in the same month of the previous year, a decrease of 21.511 TP3T.
Thus, the value of residential land purchase transactions during the first eight months of 2026 amounted to approximately 64.04 billion riyals, compared to 112.53 billion riyals during the corresponding period of 2025, recording a decrease of 43.09%, equivalent to approximately 48.49 billion riyals.
The number of trades drops by 32% to 86.4 thousand trades
The decline in the value of transactions was not separate from the movement in the number of deals, as the total number of residential land purchase deals decreased to 86,431 thousand deals during the first eight months of 2026, compared to 127,289 thousand deals in the same period last year, a decrease of 32.1%.
January 2026 saw approximately 11,747 transactions compared to 20,549 in January 2025, a decrease of 42,831 TP3T. In February, the number declined to 10,574 transactions compared to 21,210, a decrease of 50,151 TP3T.
In March, the number of transactions reached 7,720 compared to 19,008, a decrease of 59,39%, the largest monthly decrease during the period.
In April, the number of transactions reached 11,608, compared to 13,220 in the previous month, a decrease of 12,191 TP3T. In May, the number of transactions fell to 9,720, compared to 14,831, a decrease of 34,461 TP3T.
June bucked the trend, with the number of transactions rising to 11,175, compared to 9,674 in June 2025, an increase of 15,521 TP3T. In July, however, the number of transactions fell to 12,234 from 15,279, a decrease of 19,931 TP3T. August also saw a decrease, with 11,653 transactions compared to 13,518 in August 2025, a drop of 13,810 TP3T.
Average transaction value continues to decline
Data from the General Authority for Real Estate showed that the average value of residential land purchase transactions declined year-on-year in seven out of eight months, registering an increase only in February. The average transaction value in January was SAR 654,179, compared to SAR 862,005 in January 2025, a decrease of SAR 24.111. In February, the average rose slightly to SAR 653,213, compared to SAR 641,123, an increase of SAR 1.891.
The average declined again in March, registering 579,076 thousand riyals compared to 609,146 thousand riyals, a decrease of 4.94%. In April, it reached 598,975 thousand riyals compared to 629,224 thousand riyals, a decrease of 4.81%.
The average transaction value in May decreased to SAR 573,555 thousand from SAR 635,436 thousand, a drop of 9.74%. In June, the average was SAR 585,020 thousand compared to SAR 616,746 thousand, a decrease of 5.14%. In July, the average fell to SAR 559,697 thousand from SAR 604,161 thousand, a decrease of 7.36%. Finally, in August, it reached SAR 525,793 thousand, compared to SAR 593,389 thousand in August 2025, a decrease of 11.39%.
The August average of approximately 526,000 riyals represents the lowest monthly level during the first eight months of 2026, reflecting the continued downward trend in the value of a single transaction, despite the varying rates of decline from month to month.
Spaces move within a narrow range
In contrast, average land areas purchased did not experience sharp changes, fluctuating between 536 and 558 square meters during the first eight months of 2026. The average land area in January was 551 square meters, compared to 561 square meters in January 2025, a decrease of 1.781 TP3T. In February, the average was 544 square meters, compared to 561 square meters, a decrease of 3.031 TP3T.
In March, the average area rose to 554 square meters from 538 square meters, a growth of 2.97%. It then declined in April to 536 square meters from 558 square meters, a decrease of 3.94%. May saw an average area of 540 square meters compared to 545 square meters, a decrease of 0.92%, while in June the average was 537 square meters compared to 544 square meters, a decrease of 1.29%.
In July, the average plot size increased to 558 square meters from 550 square meters, a rise of 1.451 TP3T. In August, the average plot size fell to 546 square meters from 552 square meters in August 2025, a decrease of 1.091 TP3T. A comparison between August 2026 and the previous year reveals a clear discrepancy between value and plot size; while the average transaction value decreased by 11.391 TP3T, the average plot size decreased by only 1.091 TP3T. This indicates that the decrease in plot size alone does not explain the decline in the average transaction value.
Land purchase financing drops to 2.39 billion riyals
The weakness in the residential land market coincided with a decrease in new bank financing directed to individuals for the purpose of purchasing land, according to data from the Saudi Central Bank.
Total new financing during the period from January to July 2026 reached approximately SAR 2.388 billion, compared to SAR 3.017 billion during the same period in 2025, a decrease of SAR 20.851 billion. Financing in January amounted to SAR 411 million, compared to SAR 475 million in the same month of the previous year, a decrease of SAR 13.471 billion. In February, it reached SAR 330 million, compared to SAR 436 million, a decrease of SAR 24.311 billion.
In March, financing decreased to SAR 280 million compared to SAR 415 million, a drop of 32.531 TP3T. It then rose in April to SAR 356 million from SAR 304 million, an increase of 17.111 TP3T, making April the only month to record year-on-year growth during the period. Financing declined again in May, reaching SAR 335 million compared to SAR 534 million, a decrease of 37.271 TP3T. In June, it fell to SAR 341 million from SAR 482 million, a decrease of 29.251 TP3T.
In July, new financing amounted to 335 million riyals, compared to 371 million riyals in July 2025, a decrease of 9.7%.
Value declined faster than the number of transactions decreased.
Data from the first eight months of 2026 provides a comprehensive picture of the residential land market, where the value of transactions decreased by 43.09%, while the number of transactions decreased by a smaller percentage of 32.1%, coinciding with a decline in the average transaction value in most months of the year.
Meanwhile, the average areas of traded land remained relatively stable, with a decrease of no more than 1.09% in August, compared to a decrease of 11.39% in the average transaction value.
The picture is completed with a decrease in new bank financing directed to individuals for the purchase of residential land by 20.85% during the first seven months of the year.
