The Saudi real estate outlook for 2026 is gaining strength as residential activity improves across major markets. Transaction volumes increased from the first quarter, apartment values recorded annual growth across Riyadh, Jeddah and Dammam Metro, and stronger activity was recorded in several parts of the Kingdom.
Growth has developed at different speeds across cities and property types. Riyadh recorded a strong quarterly rebound in transactions, while Dammam delivered annual growth in both transaction volumes and values. Residential land activity has also increased as regulatory changes encourage more undeveloped land to enter the development cycle.
These indicators support a positive Saudi property market outlook for the remainder of 2026, particularly in areas where transaction activity, apartment demand and new development remain strong.
Saudi Real Estate Outlook 2026 Shows a Recovery in Transactions
Residential activity improved during the second quarter of 2026.
A total of 45,740 residential transactions were recorded across Saudi Arabia in Q2. This represented a 9% increase from Q1, while transaction value increased 6% quarter-on-quarter to SAR 41.9 billion.
According to Knight Frank’s Q2 2026 Saudi residential market update, the quarterly increase followed a much weaker start to the year.
Annual comparisons remain softer, with Q2 transaction volumes still below the same quarter of 2025. The quarter-on-quarter recovery still provides a useful sign that purchasing activity improved from the first-quarter level.
Apartment Prices Support the Saudi Property Market Outlook
Apartment values continued to increase across Riyadh, Jeddah and Dammam Metro.
Riyadh recorded the strongest annual increase, with apartment values rising 3.1% year on year in Q2 2026. Dammam Metro followed with 2.8% growth, while Jeddah apartment values increased 1.2%.
This gives apartment buyers a stronger set of price signals than those seen across some other residential property types.
Property type remains important. Villa values declined during the same period across all three markets, while apartment values stayed positive.
The wider trend is covered in Bayut-KSA’s guide to Saudi property prices in 2026.
Riyadh Strengthens the Saudi Real Estate Outlook
Riyadh recorded 10,667 residential transactions in Q2 2026, representing a 23% increase from Q1. Transaction value also increased 8% quarter-on-quarter to SAR 14.3 billion.
The quarterly rebound followed a slower start to the year and brought more activity back into the capital’s residential market.
Apartment values also reached approximately SAR 6,369 per square metre, following annual growth of 3.1%.
Riyadh continues to benefit from employment growth, major development programmes and a large pipeline of residential projects. Affordability and the pace of new supply will remain important for future performance.
Dammam Emerges as a Stronger Residential Market
Dammam Metro produced some of the strongest residential transaction figures among the major Saudi markets.
Residential transaction volumes increased 21% year on year to 3,896 deals, while transaction value rose 20% to SAR 4.9 billion during Q2 2026. Apartment values also increased 2.8%.
The combination of higher volumes, higher values and apartment price growth gives Dammam a strong set of market indicators.
Dammam’s performance adds another positive signal to the Saudi real estate outlook 2026, particularly as growth is being supported by both transaction activity and apartment values.
Bayut-KSA’s best cities to invest in Saudi Arabia comparison provides a wider look at Riyadh, Jeddah and Dammam.
Jeddah Records Higher Residential Transaction Value
Jeddah recorded 6,669 residential transactions in Q2 2026, while transaction value increased 31% year on year to SAR 10.3 billion.
Apartment values also increased 1.2% during the same period.
Higher transaction value alongside broadly stable volumes shows that larger-value deals played a bigger role in market activity during the quarter.
Riyadh, Jeddah and Dammam are contributing to market momentum in different ways. Riyadh has recorded a quarterly rebound, Jeddah has attracted higher transaction value, and Dammam has delivered stronger annual transaction growth.
Residential Land Supports Future Saudi Property Growth
Residential land accounted for a substantial share of Saudi real estate activity in Q2 2026.
A total of 23,110 residential land transactions were recorded during the quarter. These represented 50.5% of residential transactions and had a combined value of SAR 21.7 billion.
Changes to Saudi Arabia’s White Land Tax framework are also increasing pressure for qualifying undeveloped plots to be developed, sold or moved into partnerships with developers.
This can support future residential supply by bringing more land into productive use.
Housing Supply Strengthens the Long-Term Saudi Real Estate Outlook
New housing supply is expected to expand through the end of the decade.
Riyadh’s residential stock is forecast to increase from approximately 2.81 million units in 2026 to 3.30 million by 2030. Jeddah is expected to reach approximately 1.47 million units, while Dammam Metro is forecast to reach around 986,000 units.
New residential supply will play an important role in the Saudi real estate outlook for 2026, especially as Riyadh, Jeddah and Dammam continue to expand.
Delivery will still depend on construction costs, project timing and buyer affordability. Projects aligned with household demand and realistic price points are likely to be positioned more strongly.
Market Transparency Is Improving
Saudi real estate investors now have access to a deeper set of official market indicators.
The REGA Real Estate Indicators platform provides transaction, price and rental data across Saudi cities and property types.
Residential price indicators are updated quarterly, while rental indicators provide additional information on apartments, villas and other property categories.
Greater access to official market data improves the ability of buyers and investors to compare locations, property types and price trends before committing capital.
What Could Shape the Saudi Real Estate Outlook for the Rest of 2026?
Transaction momentum will show whether the Q2 recovery continues through the second half of the year.
- Apartment prices will remain important because annual growth has already been recorded across Riyadh, Jeddah and Dammam Metro.
- Land development will also matter as White Land Tax reforms encourage more undeveloped plots to move into the development cycle.
- Affordability will continue to influence buyer demand, particularly in Riyadh after several years of strong price growth.
- Investors should compare neighbourhoods and property types rather than relying on one national market average.
Bayut-KSA’s Investor Hub can support this comparison with zone-level data on rental yield, capital gain, average rent and indicative property values.
Saudi Real Estate Outlook for the Rest of 2026
The Saudi real estate outlook for 2026 remains supported by recovering transaction activity, apartment price growth, stronger land development and expanding residential supply.
Riyadh recorded a strong quarterly rebound in transactions. Dammam delivered annual growth in both transaction volumes and values, while Jeddah recorded a substantial increase in residential transaction value.
Land activity is also supporting future development, and a large housing pipeline continues to take shape across the Kingdom’s main cities.
Market performance will continue to vary by city, property type and price point. Stronger investment decisions will therefore depend on actual transaction activity, affordability, supply and rental demand.
Frequently Asked Questions
Is the Saudi real estate market growing in 2026?
Several indicators improved during the year. Residential transaction volumes increased 9% quarter-on-quarter in Q2, while apartment values recorded annual growth across Riyadh, Jeddah and Dammam Metro.
Which Saudi city recorded the strongest transaction growth?
Dammam Metro recorded a 21% year-on-year increase in residential transaction volumes during Q2 2026. Transaction value also increased by 20%.
Are property prices rising in Riyadh?
Riyadh apartment values increased 3.1% year on year in Q2 2026. Performance still varies by property type, with villa values recording weaker results during the same period.
Is Jeddah real estate growing?
Jeddah residential transaction value increased 31% year on year to SAR 10.3 billion in Q2 2026, while apartment values rose 1.2%.
Why are Saudi land transactions increasing?
Changes to the White Land Tax framework are encouraging qualifying undeveloped land to be developed, sold or brought forward through partnerships with developers.
Where can investors compare Saudi real estate markets?
REGA provides official transaction and price indicators, while Bayut-KSA’s Investor Hub provides investment-zone comparisons including indicative rental yields, capital gains and property values.
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