The real estate price index in Saudi Arabia witnessed a slowdown in the pace of real estate inflation annualized during the third quarter of 2025, with the annual rate of change reaching 1.3% compared to 3.2% in the second quarter of the same year.
The real estate price index in Saudi Arabia witnessed a slowdown in the pace of real estate inflation annualized during the third quarter of 2025.
Real estate inflation in Saudi Arabia
This slowdown came due to the decline in the performance of the residential sector, which represents the largest relative weight in the index, as its annual rate of change decreased from 0.4% in the second quarter to (-0.9%) in the third quarter, although other sectors continued to record remarkable increases, led by the commercial sector, which witnessed an increase of 6.8%.
According to the data of the Saudi Real Estate Inflation Index.
<According to data from the Saudi General Authority for Statistics (SGS), the real estate price index recorded a decrease of 1.1% quarter-on-quarter during the third quarter of 2025 compared to the previous quarter.
The index was affected by a 1.1% decline in residential sector prices as a result of the decline in residential land prices by 0.8%, apartments by 1.1%, and villas by 2.5%, while residential floors prices rose by 0.6%.
The index was affected by a 1.1% decline in residential sector prices. The commercial sector witnessed a decrease of 1.6% due to the decline of commercial land prices by 1.8% and exhibition prices by 0.5%, while building prices increased by 1.0%. In contrast, agricultural sector real estate prices increased by 7.3% compared to the second quarter of the year, driven by increasing prices of agricultural land plots.
On the other hand, agricultural sector real estate prices increased by 7.3% compared to the second quarter of the year. In the commercial sector, prices increased by 6.8% compared to the third quarter of the previous year, as commercial land prices increased by 7.2%, buildings by 3.3%, and galleries by 1.1%, while the residential sector witnessed a decrease of 0.9% due to the decline in residential land and apartment prices.
With regard to the commercial sector, prices recorded a rise of 6.8% compared to the third quarter of the previous year, driven by a decrease in the prices of residential land and apartments. <On a regional level, the Riyadh region witnessed a slowdown in price growth to 1.0% compared to 3.6% in the second quarter. The Eastern Province recorded the highest price increase at 6.1%, followed by Najran at 3.7%, Tabuk at 3.4%, and Mecca at 1.9%, while Hail, Northern Borders, and Madinah recorded the highest rates of decline in real estate prices at 7.3%, 7.7%, and 8.0%, respectively.
At the regional level, Riyadh saw a slowdown in price growth to 1.0% from 3.6% in Q2.
