The total value of residential villa sales in Saudi Arabia declined during the first nine months of 2026, despite the number of transactions remaining close to the previous year's levels. According to monthly reports issued by the General Authority for Real Estate , villa sales reached approximately SAR 23.60 billion during the period from January to September 2026, compared to SAR 38.41 billion during the same period in 2025, representing a market loss of approximately SAR 14.80 billion and an annual decrease of SAR 38.541 billion.
But performance was not consistent throughout the year; the first quarter saw a sharp decline, before the pace of decline gradually slowed during the following two quarters, reaching a performance closer to last year's levels in the third quarter.
Third quarter brings villa sales closer to last year's levels
Sales of residential villas in 2026 started poorly, with a value of approximately 6.76 billion riyals during the first quarter, compared to 14.81 billion riyals in the same quarter of 2025, a decrease of 54.36%.
In the second quarter, sales recorded a limited improvement in terms of quarterly value, reaching 7.65 billion riyals, but remained below its level a year earlier, when it reached about 14.10 billion riyals, which is equivalent to an annual decline of 45.78%.
As for the third quarter, it showed signs of improved performance, as the value of sales rose to about 9.20 billion riyals, compared to 9.50 billion riyals during the same period of the previous year, with an annual decrease that did not exceed 3.14%, which is the lowest among the first three quarters.
On a quarterly basis, sales in the third quarter increased by approximately 20.31 TP3T compared to the second quarter, marking the highest quarterly level since the beginning of the year. This reflects a narrowing of the gap with last year's levels, after sales fell by more than half in the first quarter.
The number of transactions remains stable despite the decline in trading value.
Despite the significant decrease in the overall value of sales, the number of villa sales transactions did not experience a similar decline. The total number of transactions executed during the first nine months of 2026 reached approximately 16,334, compared to 16,607 transactions during the same period last year, representing a slight decrease of 1.64%, or a difference of 273 transactions.
The largest decline in the number of deals occurred during the first quarter, which saw 3,976 transactions compared to 6,543 in the same quarter of 2025, representing a year-on-year decrease of 39,231 TP3T. The trend reversed in the second quarter, with the number of deals rising to 5,763, compared to 4,535 a year earlier, reflecting growth of 27,081 TP3T.
The upward trend continued during the third quarter, with 6,595 trades executed, compared to 5,529 in the same period of 2025, representing a year-on-year increase of 19,281 TP3T. The number of trades also rose by 14,410 TP3T compared to the second quarter, marking the highest quarterly level in the first three quarters of the year.
This discrepancy is highlighted by the decline in sales value by approximately 39% and the decrease in the number of transactions by less than 2%, which means that the number of sales transactions remained close to its previous level, despite the decrease in the total value of traded properties.
Average value of villa transactions declines
The stability in the number of deals coincided with a decrease in the average deal value during the first three quarters of 2026, compared to the same periods of the previous year.
In the first quarter, the average value of a villa transaction was approximately 1.52 million riyals, compared to approximately 2 million riyals in the first quarter of 2025, a decrease of 24.11%.
During the second quarter, the average decreased to about 1.35 million riyals, compared to 1.82 million riyals in the same period last year, registering a decrease of 25.66%.
In the third quarter, the average transaction value continued its decline to approximately 1.33 million riyals, compared to 1.66 million riyals a year earlier, representing an annual decrease of 19.76%.
Thus, the average transaction value decreased from about 1.52 million riyals at the beginning of the year to 1.33 million riyals in the third quarter, while the number of transactions executed during the same period increased.
However, a decline in the average does not necessarily mean a decrease in the prices of similar villas by the same proportion; this indicator is affected by the mix of properties sold, including differences in location, size, specifications and values from one transaction to another.
Larger spaces are featured in third-quarter deals
In another indication of the changing characteristics of villas in circulation, the average size of a villa sold increased during the second and third quarters of 2026, according to data from the General Authority for Real Estate.
The average area recorded in the first quarter was 421 square meters, compared to 430 square meters in the corresponding period of 2025, a decrease of 2.09%.
In the second quarter, the average increased to 448 square meters, compared to about 412 square meters a year earlier, achieving an annual increase of 8.74%.
As for the third quarter, it recorded the highest average area among the three quarters, at 460 square meters, compared to 405 square meters in the same period of the previous year, with a growth rate of 13.58%.
This means that villas sold during the third quarter were larger on average compared to their counterparts traded a year earlier, coinciding with a decrease in the average transaction value of approximately 20%.
However, combining the two indicators alone is not enough to judge the direction of prices per square meter; this requires comparing properties that are similar in location, size and specifications, taking into account the different mix of transactions carried out during each period.
Activity recovered in the third quarter
The data for the first nine months of 2026 reflects two different trends for the residential villa market in Saudi Arabia: a sharp decline in the total value of sales, compared to a limited decline in the number of transactions, with a clear improvement in quarterly indicators during the third quarter.
Quarterly sales value rose to SAR 9.20 billion, and the number of transactions increased to 6,595, while the year-on-year decrease in sales value narrowed to SAR 3.141 TP3T. Simultaneously, the number of transactions increased by 19.281 TP3T, and the average size of villas sold rose by 13.581 TP3T, despite the average transaction value decreasing by 19.761 TP3T.
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