real estate prices in Saudi Arabia recorded a significant decline during the fourth quarter of 2025, putting an end to the wave of continuous increases since 2022, in a direct reflection of the decline in residential land prices and coinciding with government interventions aimed at calming prices and balancing the market.
Real estate prices in Saudi Arabia recorded a significant decline during the fourth quarter of 2025, putting an end to the wave of continuous increases since 2022.
<According to the General Authority for Statistics, the Kingdom's real estate price index for the fourth quarter of 2025 recorded a decrease of 0.7% during the fourth quarter of 2025 compared to the fourth quarter of 2024, mainly due to the decrease in residential sector prices by 2.2%, driven by the decrease in residential land prices by 2.4%, apartments prices by 2.5%, villas prices by 1.3%, and residential floors prices by 0.2%.
Real estate prices index in the Kingdom recorded a decrease of 0.2%.
On the other hand, the real estate price index in the Kingdom, on a quarterly basis, witnessed a decrease of 0.4% compared to the third quarter of 2025, affected by the decrease in residential sector prices by 0.4%, commercial sector prices by 0.4%, and agricultural sector prices decreased by 0.7%. The real estate price index in the Kingdom witnessed a decrease of 0.4% compared to the third quarter of 2025.
Residential Sector Price Decline
It is noteworthy that the real estate price index is based on real estate transactions data in all administrative regions.
Government measures to contain rising rents
This shift in the real estate market comes in conjunction with a package of regulatory measures recently approved by the Saudi government to control the rental market, especially in the city of Riyadh, in light of the significant increases that the capital has witnessed over the past years.
Saudi Crown Prince Mohammed bin Salman, the Saudi Crown Prince and Prime Minister, has directed the implementation of new regulatory measures aimed at stabilizing the rental market and protecting the parties to the contractual relationship.
<These measures included suspending the annual increase in rents for existing or new residential and commercial contracts within the urban area of Riyadh for 5 years, effective September 25. It also included stabilizing the value of rents for vacant properties that were previously leased, according to the last registered contract, while leaving the determination of the rental value for new properties subject to negotiation and agreement between the lessor and the tenant.
These measures included the suspension of the annual increase in rents for existing or new residential and commercial contracts within the urban area of Riyadh for 5 years, effective last September 25. Observers believe that these developments reflect the Saudi real estate market entering a more balanced phase, driven by regulatory measures aimed at curbing speculation and improving the ability to own housing, at a time when these policies are expected to contribute to enhancing sustainability and stability in the medium and long term.
Observers believe that these developments reflect the entry of the Saudi real estate market into a more balanced phase, driven by regulatory measures aimed at curbing speculation and improving the ability to own housing.
