The non-residential real estate market in Saudi Arabia witnessed a significant contraction during the first nine months of 2026, with the value of sales declining at a faster pace than the number of transactions, while the third quarter recorded a relative improvement compared to the first half of the year, according to data from the General Authority for Real Estate .
Sales of non-residential real estate amounted to approximately 91.11 billion riyals during the period from January to September 2026, compared to 172.50 billion riyals in the corresponding period of 2025, with a declared decrease of 47.18%, and a difference of more than 81 billion riyals.
The data reveals the market's performance varied between quarters; the second quarter saw the steepest annual decline in sales value, before trading rose during the third quarter to its highest quarterly level since the beginning of the year, coinciding with a reduction in the annual decline rate.
Sales rise to 35 billion riyals
Sales of non-residential real estate partially recovered during the third quarter of 2026, reaching approximately SAR 35.05 billion, compared to SAR 28.37 billion in the second quarter and SAR 27.69 billion in the first quarter. Despite this improvement, sales remained below the level recorded a year earlier, at SAR 41.19 billion in the third quarter of 2025, representing a year-on-year decrease of 14.921 TP3T, according to the data.
The first quarter saw sales of approximately SAR 27.69 billion, compared to SAR 55.54 billion during the same period last year, a decrease of 50.141 TP3T. The gap widened in the second quarter, when sales fell from SAR 75.76 billion to SAR 28.37 billion, a decrease of 62.561 TP3T.
Comparing the second and third quarters of 2026, sales value increased by approximately 6.68 billion riyals, while the annual rate of decline narrowed to its lowest level during the three quarters, reflecting an improvement in trading value during the end of the period.
The market loses about 6,000 deals
The number of non-residential property sales transactions declined in parallel with their value, totaling 19,169 transactions during the first nine months of 2026, compared to 25,106 transactions during the same period of the previous year, a decrease of 23,651 TP3T, or 5,937 transactions. The first quarter saw 5,978 transactions, compared to 10,421 transactions during the corresponding quarter of 2025, a year-on-year decrease of 42,641 TP3T. In the second quarter, the number of transactions approached its level of the previous year, reaching 6,607 transactions compared to 6,850 transactions, a slight decrease of 3,551 TP3T.
The third quarter saw 6,584 transactions, compared to 7,835 in the same period last year, a decrease of 15.97%. On a quarterly basis, the number declined slightly by 0.35% compared to the second quarter, indicating a relative stability in the volume of activity during the second half of the year.
The discrepancy between the 47.18% decrease in sales value and the 23.65% decrease in the number of transactions shows that the contraction in total value was more severe than the decrease in the number of transactions executed.
Average transaction value decline
The average value of a non-residential property sale transaction declined during the first three quarters of 2026, with the annual rate of decline widening from quarter to quarter.
The average transaction value reached approximately SAR 2.58 million in the first quarter, compared to SAR 2.70 million during the same period in 2025, a decrease of 4.17%. In the second quarter, the average declined to SAR 2.09 million, compared to approximately SAR 2.51 million a year earlier, registering a decrease of 16.77%.
The index continued its decline during the third quarter, reaching approximately SAR 1.98 million, compared to SAR 2.56 million in the same quarter of the previous year, a decrease of 22.81%. These figures indicate that the average transaction value decreased by about SAR 600,000 between the first and third quarters of 2026, coinciding with a continued decline in total sales. However, this decrease does not necessarily reflect a similar drop in the prices of comparable properties, as the average is affected by the different types of properties, their locations, sizes, and the nature of the transactions.
Decline in sold areas
Contrary to the trend of average transaction value, the average area of non-residential real estate traded rose in the first quarter, before declining during the following two quarters, according to data from the General Authority for Real Estate.
The average area reached approximately 31,688 square meters in the first quarter of 2026, compared to 25,459 square meters during the same period last year, representing an increase of 24.47%. In the second quarter, the average was 29,127 square meters, compared to 29,006 square meters in the corresponding quarter of 2025, a slight increase of 0.42%. However, the trend reversed in the third quarter, with the average area decreasing to approximately 27,751 square meters, compared to 31,023 square meters a year earlier, a decline of 10.55%.
Thus, the average area traded declined between the first and third quarters of 2026, after reaching its highest level at the beginning of the year. Both the average area and the average transaction value decreased in the third quarter, reflecting a change in the characteristics of the properties involved in transactions, though this alone is insufficient to determine the direction of market prices.
Improved trading does not end the annual decline.
The results for the first nine months of 2026 reflect continued pressure on the non-residential real estate market, with sales value, number of transactions and average transaction value all declining compared to the same period last year.
In contrast, the third quarter showed an improvement in trading value compared to the previous two quarters, with sales rising to 35.05 billion riyals, while the annual rate of decline decreased to 14.92%, after exceeding 62% in the second quarter, according to the data received.
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