According to official data, more than 350 million square meters of real estate were traded, compared to only 218 million square meters in July of the previous year 2024, an increase of nearly 60% in the total value of transactions. <According to official data, more than 350 million square meters of real estate was traded last July, compared to only 218 million square meters in July of the previous year 2024, an increase of nearly 60% in total traded areas. However, the most prominent paradox was the decrease in the total value of transactions from SAR 40 billion in July 2024 to only SAR 25 billion in July 2025, reflecting a decrease of 37.5% in the total value, despite the doubling of the size of the areas.
The market is changing. What's happening?"
The drop in the value of one meter traded by more than 60% reflects the market's trend towards new, lower-cost real estate categories, possibly located in the outskirts of cities or in emerging areas, rather than the central areas that traditionally command the highest market values.
This shift seems to be taking place.
This shift is not transitory or temporary, but has deeper implications:
1.
1. Back to basics: 2.
2. Reduced speculation: 3.
3. Increase in real residential demand: The increase in areas indicates a real demand for ownership or development, especially by young people and families looking for suitable and affordable housing solutions, in line with the objectives of national housing programs.
This data cannot be read without reference to changes in real estate policies and the government's growing interest in providing diverse housing alternatives at affordable prices for different segments of society.
Part of this change may be related to the expansion of new housing projects in areas such as Greater Riyadh, Makkah, Sharqiya, and the outskirts of economic cities, which provide ample land at low prices, increasing the volume of traded spaces, but at prices not comparable to those in central areas. These data cannot be read without reference to changes in real estate policies and the government's increasing interest in providing diverse housing alternatives at affordable prices for different segments of society.
Real estate specialists consider that what is happening today may be a natural reflection of the evolution of the market and the maturity of its consumers, in addition to being a result of the economic effects that have rearranged the priorities of many investors and citizens alike. Real estate specialists consider that what is happening today may be a natural reflection of the evolution of the market and the maturity of its consumers.
According to real estate experts, this shift ”signals the beginning of a more balanced phase in the market, where the focus is on real needs instead of seeking quick profits resulting from speculation.“ They emphasize that ”this is a natural evolution of the market and the maturity of consumers, in addition to being a result of the economic effects that have rearranged the priorities of many investors and citizens alike.
"The market's trend towards lower-priced land or units means that demand is becoming more rational, which will help ease the pressure on real estate prices in the long run." Real estate experts emphasize that this shift "signals the beginning of a more balanced phase in the market, where the focus is on real needs rather than quick profits resulting from speculation.
Although the data reflects a clear shift, the big question remains: Is this the beginning of a full-scale repricing phase in the real estate market?
The answer is not entirely clear yet, but current indicators suggest that the market is on its way to getting rid of some of the previous distortions, with the introduction of more transparent systems and the adoption of digital platforms such as the real estate exchange that provide live and realistic data that helps in making more rational buying and investment decisions.
Given this change, the time may be right for buyers who have been waiting for the right opportunity to enter the market, especially in areas where land is plentiful and prices are low.
On the other hand, real estate developers are being asked to reconsider their strategies and focus on products that suit the real needs of the market, especially in the middle and lower middle classes that make up the largest proportion of society.
Consumers are looking for space before location, which could signal expanding demand for land and condominiums in suburban or less expensive areas, amid rising living costs and financing pressures.
The decline in value versus area may reflect a decline in real estate speculation that used to ignite prices in previous years, with the expansion of control and the application of modern regulations aimed at enhancing transparency and directing the market towards real activity.
The increase in areas indicates a real demand for ownership or development, especially by young people and families looking for suitable and affordable housing solutions, in line with the objectives of national housing programs.Between geographic expansion and falling prices
Change may be healthy and needed
The future of the market: Are we witnessing a wholesale repricing?"
Opportunity for buyers and developers
