According to the issued data by the General Authority for Statistics (GASTAT), it explained that Saudi Arabia’s real estate price index declined by 0.7% year-on-year in Q4 of 2025.
Based on 2023 as the base year, the index eased to 103.48 points in the fourth quarter 2025, compared with 104.18 points a year earlier. Also, the decline was largely due to weaker performance in the residential sector, the index’s most heavily weighted component.
On the other hand, the authority noted that a revised index methodology was introduced in Q3 2024 in collaboration with the Real Estate General Authority (REGA), the Ministry of Justice and the Saudi Central Bank (SAMA) with 2023 adopted as the base year.
The real estate index tracks performance across three main segments:
- The residential sector, including all types of the residential units and lands.
- The commercial sector, comprising commercial lands, buildings, shops and malls
- The agricultural sector that includes the agricultural land.
GASTAT reported that the residential segment declined 2.2% year on year in Q4 2025, reflecting slower price momentum. The decrease was driven by a 2.4% fall in residential land prices and a 2.5% drop in apartment prices.
In contrast, the commercial sector, which accounts for 25.4% of the index’s weighting, posted a 3.6% annual increase, supported by a 3.5% year-on-year rise in commercial land prices as of Q4 2025.
Meanwhile, the agricultural sector recorded the strongest performance, climbing 4.35 year on year to 109.44 points during the same quarter. In addition, regionally, real estate prices rose most in the Eastern Province, which posted a 0.4% year-on-year increase, followed by Makkah at 2.5% with Tabuk and Jazan each seeing prices climb 1.1%.
Here is the index that explains the index price by region:
Reasons for Saudi Real Estate Price Index Decrease
There are multiple reasons of the index decrease in Saudi Arabia, here are the most prominent ones:
- Government market-balancing policies.
- Decline in residential property prices.
- Slower demand and increased supply.
- High interest rates and financing conditions.
- Slower real estate transaction activity
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