The features of the residential real estate market in Saudi Arabia changed during the first eight months of 2026, with the average value of a purchased residential property declining to about 729,000 riyals, compared to about 773,000 riyals during the same period last year, a decrease of approximately 5.7%, in conjunction with a decline in the average area and number of transactions, and a decrease in the total value of transactions at a greater pace.
Data from the General Authority for Real Estate indicates that the value of residential real estate purchase transactions amounted to approximately 129.16 billion riyals during the period from January to August 2026, compared to 228.64 billion riyals during the corresponding period of 2025, a decrease of 43.51%.
In contrast, the number of transactions did not decline at the same pace, reaching 155,719 transactions during the first eight months of the year, compared to 208,812 transactions in the same period of 2025, a decrease of 25,43%, reflecting a change in the average value of properties that entered the market during the period.
The value of residential transactions is 129.16 billion riyals.
The residential real estate purchase market recorded a clear decline in the total value of transactions during the first eight months of 2026, after it fell to 129.16 billion riyals, compared to 228.64 billion riyals during the same period last year, recording a decrease of 43.51%.
According to monthly data issued by the General Authority for Real Estate , the value of transactions reached SAR 17.52 billion in January 2026, compared to SAR 31.39 billion in January 2025, a decrease of SAR 44.191 TP3T. In February, the value of transactions declined from SAR 33.22 billion to SAR 14.65 billion, a decrease of SAR 55.91 TP3T, while March recorded the largest annual decrease during the period at SAR 67.491 TP3T, with the value of transactions reaching SAR 12.03 billion, compared to SAR 37 billion in the same month of 2025.
In April, the pace of decline was much slower, with the value of transactions reaching SAR 18.07 billion, compared to SAR 18.72 billion, a decrease of SAR 3.47%. Then it fell in May to SAR 14.14 billion, compared to SAR 38.69 billion, registering a decrease of SAR 63.45%.
In June, the value of transactions approached the previous year's levels, reaching SAR 15.03 billion, compared to SAR 15.02 billion, a slight increase of 0.071 TP3T. Trading value rebounded to SAR 19.82 billion in July, but remained below the July 2025 level of SAR 35.04 billion, a decrease of 43.441 TP3T. In August, the value of transactions reached SAR 17.90 billion, compared to SAR 19.56 billion in August of the previous year, a decline of 8.491 TP3T.
155,000 transactions despite the decline in trading volume.
The decline in the number of transactions was not as severe as the decline in their value, as the first eight months of 2026 witnessed the execution of 155,719 residential property purchase transactions, compared to 208,812 transactions in the same period of 2025, a decrease of 25,43%.
The year began with a decline in the number of transactions from 32,417 in January 2025 to 20,026 in January 2026, a decrease of 38,221 TP3T. In February, the number fell from 33,557 to 18,347 transactions, a decrease of 45,331 TP3T.
March saw a larger decline, with the number of deals falling from 29,489 to 14,222, a decrease of 51.77%, before the picture changed in April, when the number of deals rose to 21,597 compared to 21,022, a growth of 2.74%.
The decline continued in May, with the number of deals falling to 17,006 compared to 25,630, a decrease of 33.65%, while June saw an annual increase of 17.66%, with 19,844 deals recorded compared to 16,866 deals.
In July, the number of transactions reached 22,837, compared to 26,340 in the same month last year, a decrease of 13.31 TP3T. August saw 21,840 transactions compared to 23,491, a decrease of 7.031 TP3T, representing a less pronounced decline compared to the beginning of the year.
The average property value drops to 729,000 riyals.
The decline in the total value of transactions, which was greater than the decline in their number, led to a decrease in the average value of residential property purchased during the period. The weighted average reached about 729 thousand riyals during the first eight months of 2026, compared to about 773 thousand riyals during the same period of 2025, a decrease of 5.7%.
The average transaction value was SAR 758,877 in January 2026, compared to SAR 801,331 in January 2025, a decrease of 5.3%. In February, the average decreased from SAR 786,878 to SAR 759,732, a drop of 3.45%. In March, the average transaction value was SAR 741,183, compared to SAR 781,652, a decrease of 5.18%, while in April it was SAR 756,468, compared to SAR 781,614, a decrease of 3.22%.
The decline accelerated in May, when the average fell to SAR 716,470, compared to SAR 780,597, a decrease of 8.22%. In June, it reached SAR 706,282, down from SAR 762,779, a decrease of 7.41%.
In July, the decline was more limited, with the average transaction value falling to SAR 715,004 from SAR 728,528, a decrease of 1.86%. August then saw the lowest average for the eight months at SAR 686,324, compared to SAR 745,857 in August 2025, a decrease of 7.98%.
The average area drops to 412 square meters.
The change in the market was not limited to the value of the properties purchased, as the average area of the residential property decreased to about 412 square meters during the first eight months of 2026, compared to about 423 square meters during the same period of 2025, a decrease of approximately 2.6%.
The average area was 423 square meters in January 2026, compared to 426 square meters in January 2025, a decrease of 0.7%. In February, the average decreased from 427 to 411 square meters, a decrease of 3.75%.
In March, the average area was 408 square meters, compared to 432 square meters, a decrease of 5.56%, while April recorded the largest decline during the period at 8.45%, with the average dropping from 438 to 401 square meters.
On the other hand, the average area increased in May to 413 square meters, compared to 409 square meters, with a growth of 0.98%, and it also increased in June to 412 square meters compared to 409 square meters, with a growth of 0.73%.
In July, the average size was 419 square meters compared to 422 square meters, a decrease of 0.71%, while in August it was 408 square meters compared to 413 square meters, a decrease of 1.21%. These figures show that the decline in residential property value was greater than the decrease in average size, meaning that the change in transaction value is not solely related to the purchase of smaller properties, especially given the varying trends in size from month to month.
Supply enters the market equation. This shift in the value and averages of transactions coincides with measures aimed at increasing the real estate supply and achieving greater balance between supply and demand in the Saudi market, including white land fees and the real estate balance program in Riyadh.
The Real Estate Balance Program aims to provide between 10,000 and 40,000 planned residential plots annually in Riyadh, at prices not exceeding 1,500 riyals per square meter, with the goal of increasing supply, reducing the gap between supply and demand, and supporting the stability of the real estate market in the capital.
Data from the first eight months of 2026 shows a multi-dimensional shift in the residential real estate market; while the total value of transactions decreased by 43,51%, the decline in the number of transactions was less severe at 25,43%, and the average property value decreased by about 5.7%, in conjunction with a decrease in the average area by about 2.6%.
Thus, the change in the market is not only reflected in the volume of transactions, but also extends to the nature of the properties being purchased, their average value and size, with a clear variation in performance trends from month to month during 2026.
