The construction and real estate sectors in Saudi Arabia maintained their annual growth during the second quarter of 2026, after their combined value rose to 171.72 billion riyals, compared to 162.2 billion riyals in the corresponding quarter of 2025, an increase of approximately 5.91 TP3T and a value of 9.52 billion riyals, according to data from the General Authority for Statistics .
Despite this growth, the combined contribution of the two activities to GDP declined slightly to 13.59% during the second quarter of 2026, compared to 13.79% in the same period last year, reflecting the difference in the growth rate of the two activities compared to the growth of GDP as a whole.
The increase in the combined value was driven by the growth of real estate activities by 7.09% on an annual basis, reaching a value of 77.19 billion riyals, along with the rise in construction activity by 4.89% to 94.52 billion riyals.
13.59 % contribution to GDP
Construction activity accounted for 7.48% of Saudi Arabia’s GDP during the second quarter of 2026, while real estate activities contributed 6.11%, bringing the combined contribution of the two activities to 13.59%.
This ratio declined from 13.81% in the first quarter of 2026, and was also lower than the second quarter of 2025 level of 13.79%.
Considering the evolution of the contribution since the beginning of the data period, the combined share of the two activities was 13.23% in the first quarter of 2024, before decreasing to 12.62% in the second quarter, then rising to 13.5% in the third quarter and 13.95% in the fourth quarter of the same year.
In the first quarter of 2025, the combined contribution reached 13.96%, then 13.79% in the second quarter, and 14.16% in the third quarter, before recording the highest level during the period at 14.71% in the fourth quarter, with a contribution of 8.58% for construction and building and 6.13% for real estate activities.
As of the beginning of 2026, the contribution of the two activities was 13.81% in the first quarter, before declining to 13.59% in the second quarter.
94.5 billion riyals for construction and building
The added value of the construction activity rose to 94.524 billion riyals during the second quarter of 2026, compared to 90.117 billion riyals in the second quarter of 2025, with an annual growth of 4.89%.
On a quarterly basis, the value of the activity decreased by 0.93%, compared to 95.411 billion riyals in the first quarter of 2026.
Data from previous quarters reveals continued annual growth in the sector, although the rates varied from quarter to quarter. In the first quarter of 2024, added value reached SAR 87.237 billion, representing a quarterly decrease of SAR 3.341 TP3T and an annual growth of SAR 4.771 TP3T.
In the second quarter of 2024, the value declined to SAR 85.219 billion, a quarterly decrease of SAR 2.311 TP3T, while it increased year-on-year by SAR 7.221 TP3T. It then rose in the third quarter to SAR 92.177 billion, with quarterly growth of SAR 8.161 TP3T and year-on-year growth of SAR 8.091 TP3T.
In the fourth quarter of 2024, the value reached SAR 97.983 billion, representing a quarterly increase of SAR 6.31 TP3T and an annual growth of SAR 8.571 TP3T. At the beginning of 2025, the value declined in the first quarter to SAR 92.029 billion, a quarterly decrease of SAR 6.081 TP3T, but with annual growth of SAR 5.491 TP3T. In the second quarter, activity reached SAR 90.117 billion, a quarterly decrease of SAR 2.081 TP3T and annual growth of SAR 5.751 TP3T.
In the third quarter, the value rose to 95.709 billion riyals, with a quarterly growth of 6.21% and an annual growth of 3.83%, before reaching 103.843 billion riyals in the fourth quarter, with a quarterly increase of 8.5% and an annual growth of 5.98%.
In the first quarter of 2026, the value added for construction and building amounted to 95.411 billion riyals, a quarterly decrease of 8.12%, with an annual growth of 3.67%, before recording 94.524 billion riyals in the second quarter, with an annual growth of 4.89% and a quarterly decrease of 0.93%.
These data indicate that construction activity maintained annual growth across all quarters covered, with annual growth rates since the beginning of 2024 ranging between 3.67% and 8.57%.
Real estate outperforms in growth rate
Real estate activities recorded an annual growth of 7.09% during the second quarter of 2026, exceeding the growth rate of construction activity, with the added value rising to SAR 77.191 billion, compared to SAR 72.083 billion in the second quarter of 2025.
On a quarterly basis, the value of real estate activities decreased by 4.34%, compared to 80.689 billion riyals in the first quarter of 2026.
Real estate activities recorded a value added of SAR 66.712 billion in the first quarter of 2024, representing a quarterly growth of SAR 10.721 TP3T and an annual growth of SAR 11.821 TP3T. In the second quarter, the value declined to SAR 64.574 billion, a quarterly decrease of SAR 3.21 TP3T, while the annual growth was SAR 10.221 TP3T.
Then it rose in the third quarter to 65.241 billion riyals, with a quarterly increase of 1.03% and an annual growth of 14%, before reaching 67.6 billion riyals in the fourth quarter, with a quarterly growth of 3.62% and an annual growth of 12.19%.
In the first quarter of 2025, the value added of real estate activities rose to SAR 75.298 billion, with quarterly growth of SAR 11.391 TP3T and annual growth of SAR 12.871 TP3T. It then declined in the second quarter to SAR 72.083 billion, a quarterly decrease of SAR 4.271 TP3T, with annual growth of SAR 11.631 TP3T.
In the third quarter, the value reached 72.986 billion riyals, with a quarterly increase of 1.25% and an annual growth of 11.87%. Then it rose in the fourth quarter to 74.132 billion riyals, with a quarterly growth of 1.57% and an annual growth of 9.66%.
At the beginning of 2026, real estate activities recorded 80.689 billion riyals in the first quarter, with a quarterly increase of 8.85% and annual growth of 7.16%, before declining to 77.191 billion riyals in the second quarter, with a quarterly decrease of 4.34%, while annual growth continued at 7.09%.
The value of the two activities is 171.7 billion riyals.
The quarterly comparison shows that the combined value of construction, building and real estate activities rose from SAR 153.949 billion in the first quarter of 2024 to SAR 149.793 billion in the second quarter, then climbed to SAR 157.418 billion in the third quarter and SAR 165.583 billion in the fourth quarter.
In 2025, the combined value reached 167.327 billion riyals in the first quarter, then declined to 162.2 billion riyals in the second quarter, before rising to 168.695 billion riyals in the third quarter and 177.975 billion riyals in the fourth quarter.
At the start of 2026, the combined value of the two activities reached SAR 176.1 billion in the first quarter, before declining to SAR 171.715 billion in the second quarter. Despite the quarterly decrease, the value recorded in the second quarter of 2026 remains higher than that of the same quarter of the previous year, when it reached SAR 162.2 billion, registering an annualized growth of approximately 5.91 TP3T.
Value growth versus declining share : The second quarter 2026 data reflects a clear paradox between the growth in value added of the two sectors and their declining share of GDP. The combined value rose to SAR 171.72 billion, driven by year-on-year growth in real estate (7.091 TP3T) and construction (4.891 TP3T).
In contrast, the combined contribution of the two activities fell to 13.59% of GDP, compared to 13.79% in the second quarter of 2025, and 13.81% in the first quarter of 2026. This ratio remains higher than 13%, but it came below the record level recorded in the fourth quarter of 2025 at 14.71%.
