Saudi Real Estate Transactions Plunge 51.5% to $21.9 Billion as Regulatory Shift Reshapes Market
Updated
Updated · Arab News · Jul 6
Saudi Real Estate Transactions Plunge 51.5% to $21.9 Billion as Regulatory Shift Reshapes Market
2 articles · Updated · Arab News · Jul 6
Summary
$21.9 billion in Saudi real estate transactions changed hands in H1 2026, down from $45.1 billion a year earlier, while deal count fell 26.4% to 161,900.
Parcel-based registration and the transfer of key areas including Riyadh to the Real Estate Registry system coincided with the slowdown, while analysts also cited the US-Iran war as a major drag on trading.
Prices fell far less than volumes: the average price per square meter slipped 11.4% to SR1,965, suggesting fewer high-value deals rather than a broad market price collapse.
Analysts said investors are reassessing holdings and shifting some assets into non-traded status, with liquidity becoming more selective and favoring quality assets.
H2 2026 is expected to improve gradually, led by residential projects tied to real demand and by logistics and industrial property, though a quick return to past record transaction levels is unlikely.
How is Saudi Arabia's logistics real estate sector booming amid a wider market slowdown?
Is Saudi Arabia’s property slump a strategic “rebalancing” or a crisis driven by regional war?
With new laws allowing foreign ownership, is now the perfect time to invest in Saudi property?
H1 2026 Saudi Real Estate: Transactions Down, Prices Hold, and Vision 2030 Reforms Reshape Market
Overview
In the first half of 2026, Saudi Arabia's real estate market faced a sharp slowdown, with residential transactions plunging due to persistent affordability pressures and growing geopolitical uncertainty from a recent regional conflict. This conflict made buyers more hesitant, while some households delayed purchases in hopes of lower prices. Despite the drop in activity, property prices remained resilient and did not collapse, showing the market's underlying strength. The slowdown began even before the conflict, but these combined factors deepened the impact, highlighting a cautious but stable market environment during this period.