Recent data released by Real Estate Exchange highlights a new phase in the land market in Riyadh, after land prices recorded significant declines in a number of neighborhoods—an indicator reflecting a market realignment and a shift in the balance of supply and demand.
Northern Riyadh: A Price Correction Following a Rally
In the northern neighborhoods of the capital—which had been among the most active areas in recent years—clear declines in the price per square meter have emerged, indicating that the market has entered a phase of price correction. The price per square meter in the Al-Qayrawan neighborhood has fallen to around 7,500 riyals, down from over 11,000 riyals, while in the Al-Malqa neighborhood, it has dropped to 7,500 riyals from 12,000 riyals previously.
The Al-Yasmin neighborhood also recorded an average price of 6,500 riyals per square meter, down from 10,000 riyals, while the price in the Al-Narges neighborhood reached 5,500 riyals after having been around 8,000 riyals. and the Al-Aard neighborhood saw a decline to 4,500 riyals per square meter compared to 7,500 riyals in previous periods.
Downtown Riyadh... Limited but Significant Declines
Downtown Riyadh was not immune to these trends, as indicators showed that the price per square meter in the Al-Olaya neighborhood fell to around 6,500 riyals, down from nearly 10,000 riyals, a development that may reignite investor interest in some central locations that have experienced relative stagnation in recent times.
South and West Riyadh… Opportunities at Lower Prices
In the southern and western parts of the city, the declines were more pronounced, enhancing the appeal of these areas for those seeking opportunities at lower prices. The Namar neighborhood recorded a price of 1,100 riyals per square meter, down from 1,700 riyals previously, while prices in the Al-Khair neighborhood fell to around 1,200 riyals per square meter, down from 2,500 riyals.
These trends reflect a new reality in Riyadh’s land market, driven by increased supply and shifting demand patterns, as well as investors’ and buyers’ anticipation of future price trends. Observers believe that these price levels may open up new opportunities for both homebuyers and investors looking to enter the market at more balanced price points.
