Saudi property prices increased 1.2% year on year in Q3 2026, but the national figure hides substantial differences between property types and regions.
Residential property prices rose 2.3%, supported by a 4.9% increase in residential land and a 1.7% rise in apartment prices. Villa prices moved in the opposite direction, falling 7.7% from Q3 2025. The General Authority for Statistics uses 2023 as the base year for the Real Estate Price Index.
Regional performance was equally varied. Northern Borders recorded the strongest annual increase at 12%, followed by Riyadh at 4.6%. Prices declined in several other regions, including the Eastern Province and Asir.
The Q3 figures show why buyers and investors need to look beyond a single national property-price number.
What Happened to Saudi Property Prices in Q3 2026?
Saudi Arabia’s Real Estate Price Index reached 105.1 points in Q3 2026, compared with 103.9 in the same quarter of 2025. This produced annual growth of 1.2%.
Residential property carries the largest weight in the index at 72.7%, so its 2.3% increase had a significant effect on the national result.
Residential performance broke down as follows:
- Residential land prices increased 4.9%
- Apartment prices increased 1.7%
- Residential floor prices increased 0.8%
- Villa prices declined 7.7%
The figures point to stronger pricing in land and apartments than in villas.
This distinction also builds on the pattern seen earlier in 2026. In Q2, apartment values were rising in Riyadh, Jeddah and Dammam Metro while villa values declined across all three markets. Bayut-KSA’s Saudi real estate outlook 2026 provides the wider transaction and supply context behind that trend.
Residential Land Recorded the Strongest Growth
Residential land produced the largest annual increase among the main residential property types at 4.9%.
Land prices matter because they feed directly into the economics of future development. Higher acquisition costs can affect the price developers need to achieve on completed apartments and villas.
Saudi Arabia is simultaneously introducing measures aimed at increasing the amount of developable land reaching the market. Development-processing reforms, White Land Fees and programmes designed to activate undeveloped plots can expand supply over time.
The latest Etmam figures show this process already moving forward. Thousands of development requests have been processed during 2026, while more than 8 million sq m of land is being assessed through services designed to resolve development obstacles.
Read Bayut-KSA’s analysis of Saudi housing supply in 2026 for more on how the development pipeline is changing.
Apartment Prices Continued to Rise
Apartment prices increased 1.7% year on year.
That result is relevant for both owner-occupiers and investors because apartments generally offer a lower entry price than villas and form an important part of rental supply in the Kingdom’s larger cities.
Q2 data had already shown apartment value growth of 3.1% in Riyadh, 1.2% in Jeddah and 2.8% in Dammam Metro.
Investors should still compare price growth with rental income. A market with rising apartment prices does not automatically provide the highest return if purchase prices are increasing faster than rents.
Bayut-KSA’s comparison of Saudi rental yields in Riyadh and Jeddah can help investors assess income alongside acquisition costs.
Why Did Villa Prices Fall?
Villa prices declined 7.7% nationally compared with Q3 2025.
The national figure should not be interpreted as a 7.7% fall in every neighbourhood. GASTAT’s index measures transaction-price movements across the wider market, while individual communities can perform differently depending on location, age, plot size and local demand.
Affordability is one factor worth watching. Villas usually require larger mortgages and higher upfront capital than apartments, making demand more sensitive to financing conditions and household purchasing power.
The gap between apartment and villa performance reinforces the need to evaluate property type separately rather than treating Saudi residential real estate as one market.
For a broader explanation, see Bayut-KSA’s guide on whether Saudi property prices are falling in 2026.
Where Did Property Prices Rise the Most?
Regional performance varied sharply in Q3.
Northern Borders recorded the strongest annual increase at 12%. Riyadh followed at 4.6%, while Madinah recorded modest growth of 0.3%.
Several other regions recorded annual declines.
| Region | Index | YoY Change |
|---|---|---|
| Northern Borders | 105.2 | +12.0% |
| Riyadh | 116.0 | +4.6% |
| Madinah | 91.9 | +0.3% |
| Eastern Province | 94.0 | -3.7% |
| Hail | 90.1 | -3.8% |
| Asir | 82.8 | -4.3% |
Riyadh Remained One of the Strongest Major Markets
Riyadh’s overall property-price index increased 4.6% year on year, making it the second-strongest administrative region after Northern Borders.
The capital also recorded relatively strong residential activity earlier in the year. Q2 saw 10,670 residential transactions, up 23% from Q1, while apartment values increased 3.1% year on year.
Supply measures will become increasingly important as the city expands. New residential development, land activation and the Real Estate Balance Programme could increase buyer choice over the coming years.
Investors comparing Riyadh with other major markets can use Bayut-KSA’s best city to invest in Saudi Arabia guide.
What Does the Eastern Province Decline Mean?
The Eastern Province recorded a 3.7% annual decline in the overall property-price index.
That figure contrasts with some of the transaction data seen earlier in the year. Dammam Metro recorded 3,900 residential transactions in Q2, up 21% year on year, while transaction value increased 20% to SAR 4.9 billion. Apartment values also rose 2.8%.
Price indices and transaction activity measure different parts of the market. A region can record stronger sales activity while its broader property-price index falls because the mix of properties, locations and sectors being transacted changes.
For investors, this creates another reason to look at the city and property type rather than relying solely on the regional index.
Property Prices Fell Quarter on Quarter
The annual increase also needs to be viewed alongside the short-term movement.
Saudi Arabia’s overall Real Estate Price Index declined 1.2% from Q2 to Q3 2026. The residential prices fell 1.5% quarter-on-quarter. Residential land declined 2.1%, apartments slipped 0.5% and villas fell 0.4%. Residential floors increased 1%.
This means the Q3 picture contains two simultaneous trends.
Prices remained higher than a year earlier, while the market softened from the previous quarter.
That does not invalidate the annual growth figure. It shows that price momentum moderated during Q3.
Commercial Property Prices Also Declined
The residential market provided the main support to the national index.
Commercial property prices fell 2% year on year in Q3. Commercial land declined 2.1%, commercial building prices fell 1.4%, and exhibition and shop prices declined 0.9%. Agricultural property moved in the opposite direction, rising 3.9%.
The divergence shows that Saudi real estate performance currently depends heavily on sector exposure.
A residential apartment investor, commercial landowner and agricultural land investor can therefore experience very different market conditions during the same quarter.
What Should Buyers Watch After Q3?
The Q3 data provides a useful pricing benchmark, but buyers should combine it with several other indicators before making a decision.
Watch:
- Transaction volumes in the target city
- Apartment and villa performance separately
- New housing supply
- Mortgage affordability
- Rental demand and yields
- Infrastructure around the neighbourhood
- Comparable transaction prices
- New land and development programmes
Property verification should also remain part of the process. Bayut-KSA’s guide on how to verify property before paying explains the checks buyers should make before transferring funds.
What Should Investors Take From Q3 2026?
The 1.2% national increase gives a useful headline, but the more important signals sit underneath it.
Residential land recorded the strongest property-type growth. Apartments remained positive, while villas recorded a substantial annual decline. Riyadh continued to post stronger regional growth, while several other regions moved lower.
Investors therefore need to compare three levels of the market:
- Region
- Property type
- Individual neighbourhood or investment zone
Bayut-KSA’s investment zones guide provides further context for foreign investors comparing locations.
Frequently Asked Questions
How much did Saudi property prices rise in Q3 2026?
Saudi Arabia’s overall Real Estate Price Index increased 1.2% year on year in Q3 2026. Residential property prices increased 2.3%.
Which residential property type recorded the strongest growth?
Residential land recorded the strongest annual increase at 4.9%, followed by apartments at 1.7% and residential floors at 0.8%. Villa prices declined 7.7%.
Where did Saudi property prices rise the most?
Northern Borders recorded the strongest regional increase at 12%, followed by Riyadh at 4.6% and Madinah at 0.3%.
Did property prices fall anywhere in Saudi Arabia?
Yes. Several regions recorded annual declines, including Asir at 4.3%, Hail at 3.8% and the Eastern Province at 3.7%.
Are apartment prices rising in Saudi Arabia?
Apartment prices increased 1.7% nationally compared with Q3 2025. They declined 0.5% compared with the previous quarter.
Are villa prices falling in Saudi Arabia?
The national villa price index declined 7.7% year on year in Q3 2026. Individual villa markets and neighbourhoods can still perform differently from the national average.
Where can investors compare Saudi property markets?
Bayut-KSA’s Investor Hub provides market comparisons using indicators including indicative rental yields, capital gains, average rents and property values.
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