After an exceptional month in trading volume, the Riyadh real estate market returned to lower levels in terms of transaction value and average transaction value during August 2026. Data from the first eight months of the year reveals a market that moves at a varying pace from month to month, while regulatory measures continue to increase the housing supply and support the balance between supply and demand.
According to real estate transaction data issued by the General Authority for Real Estate , the average value of a property sold in Riyadh during August was about 1.41 million riyals, compared to 2.04 million riyals in July, a decrease of 31.19%, which is equivalent to about 637 thousand riyals in the average value of a single transaction.
August reflects a sharp change in the trading trend.
August saw the lowest average transaction value since the beginning of the year, following a series of fluctuating movements in previous months. The average transaction value started in January at approximately 1.95 million riyals, then rose in February to 2.08 million riyals, its highest monthly level during the period.
As the second quarter began, the average fell to SAR 1.97 million in March, then to around SAR 1.64 million in April, before recovering some of its gains in May to SAR 2.05 million. In June, the average dropped again to around SAR 1.48 million, then jumped in July to SAR 2.04 million, before falling sharply in August to SAR 1.41 million.
Thus, the average transaction value in August was about 540,000 riyals lower than in January, a decrease of 27.75%, while the average transaction value over the first eight months was about 1.82 million riyals.
Sales in August reached 9.3 billion riyals.
The decline in the average transaction value was not the only indicator of the slowdown in activity in August, as the total value of real estate sales transactions in Riyadh fell to about 9.32 billion riyals, compared to 15.68 billion riyals in July, a monthly decrease of 40.58%.
July had recorded the highest monthly sales value since the beginning of the year, with real estate transactions amounting to 15.68 billion riyals through 7,670 deals, while the number decreased in August to 6,623 deals, with a total value of 9.32 billion riyals.
Thus, the number of real estate transactions decreased by approximately 1,047 deals in one month, representing a drop of 13.651 TP3T. The simultaneous decrease in the number of transactions and the decline in the average transaction value indicates that the overall drop in sales value in August was not solely due to a decrease in transaction volume, but was also accompanied by a change in the average value of the properties included in the transactions.
From January to August, the total value of real estate transactions in Riyadh reached approximately SAR 88.14 billion, through 48,512 deals, with an average monthly sales value of around SAR 11.02 billion. January saw 6,006 transactions worth SAR 11.69 billion, while February witnessed 5,388 transactions worth SAR 11.19 billion. In March, the number of transactions reached 4,773, valued at SAR 9.38 billion, before activity surged in April to 7,238 transactions worth SAR 11.85 billion.
In May, transactions reached 5,377 deals worth SAR 11 billion, followed by June, which saw 5,437 deals worth SAR 8.04 billion – the lowest monthly sales value during the period. Activity then surged in July to 7,670 deals worth SAR 15.68 billion, before declining in August.
Land and supply at the heart of market transformations
This performance coincides with the continuation of measures aimed at readjusting the relationship between supply and demand in the Riyadh real estate market, most notably the Real Estate Balance Program overseen by the Royal Commission for Riyadh City.
The program aims to provide between 10,000 and 40,000 planned and developed residential plots annually for five years, at prices not exceeding 1,500 riyals per square meter, thus providing eligible citizens with additional ownership options and supporting an increase in the supply of residential land.
White land fees have also entered the implementation phase in Riyadh, with invoices starting in January 2026, as part of measures aimed at stimulating the development of unexploited land and increasing supply within the urban area.
These measures put the market on a path aimed at expanding the supply base, whether through new residential land or by pushing undeveloped land into the development cycle, which may alleviate pressure on prices while increasing the options available to buyers.
