Saudi Arabia’s Real Estate Price Index (REPI) increased 1.3 percent year on year in the second quarter of 2026, supported by higher residential and agricultural property prices, according to the General Authority for Statistics (GASTAT). The gains outweighed continued weakness in the commercial real estate segment, reflecting mixed trends across the Kingdom’s property market.
Residential real estate prices climbed 2.6 percent annually, while agricultural property prices posted the strongest increase among all sectors, rising 11.3 percent. In contrast, commercial real estate prices declined 3.2 percent over the same period.
The rise in residential Saudi Home Priceswas largely driven by land values. Residential plot prices surged 6.3 percent compared with the second quarter of 2025, while apartment prices rose 1.1 percent and residential floor prices edged up 0.4 percent. Villa prices, however, fell 9.7 percent, indicating uneven demand across different housing categories.
Quarterly growth remains strong
On a quarterly basis, the Real Estate Price Index increased 3 percent in the second quarter compared with the previous three months.
Residential prices rose 3.7 percent quarter on quarter, led by a 6.1 percent increase in residential land prices. Apartment prices also advanced 0.9 percent, while villa and residential floor prices declined 2.1 percent and 1.1 percent, respectively.
GASTAT said the index is compiled using real estate transaction data and an updated methodology aimed at improving market accuracy. The authority noted that it uses a geospatial artificial intelligence model to process different types of property transactions by integrating multiple data sources with satellite imagery.
Commercial sector remains under pressure
Despite the overall improvement in the Saudi Home Prices index, the commercial real estate sector continued to weigh on annual performance. Commercial plot prices fell 3.5 percent year on year, while building prices slipped 0.6 percent. However, prices for exhibitions and shops increased 0.4 percent.
On a quarterly basis, commercial Saudi Home Prices rose 1 percent, supported by higher commercial land values and a 3.8 percent increase in exhibitions and shop prices, although building prices edged down 0.3 percent.
Agricultural real estate maintained its strong momentum, recording an 11.3 percent annual increase and a 1.3 percent quarterly rise, driven by higher agricultural land prices.
Regional and Gulf market trends
Property Saudi Home Prices movements varied across Saudi Arabia. Al-Jawf recorded the highest annual increase at 10.4 percent, followed by the Northern Borders (4.6 percent) and Riyadh (4.2 percent), while Makkah posted a modest 0.4 percent rise. Hail registered the sharpest decline at 10.1 percent, with Qassim, Madinah, Al-Baha and several other regions also reporting lower prices.
Across the Gulf, residential markets continued to diverge. The UAE recorded strong, though moderating, price growth during the first quarter of 2026, while Qatar’s residential property market remained broadly stable.
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