Real estate prices in Saudi Arabia declined in the fourth quarter of 2025 – Statistics Report
The General Authority for Statistics in Saudi Arabia announced on Tuesday the results of its Real Estate Price Index bulletin for the fourth quarter of 2025. Official data revealed that the general real estate price index recorded an annual decrease of 0.7% compared to the same period in 2024, reflecting a corrective movement in the Saudi real estate market in line with increased supply and a diversification of housing options.
Details of the decline in the residential sector
The statistical bulletin explained that the main driver of this decline was a 2.2% drop in residential sector prices. Looking at the specifics of this sector, residential land prices saw a significant decrease of 2.4%, the most substantial factor given land's weight in the overall index. Apartment prices also fell by 2.5%, villa prices by 1.3%, while residential floor prices experienced a slight decrease of 0.2%.
Quarterly performance and other sectors
On a quarterly basis, the index showed a 0.4% decrease compared to the third quarter of 2025. This decline was not limited to the residential sector; it extended to the commercial sector, where properties also saw a 0.4% drop, in addition to a 0.7% decrease in agricultural prices. These figures reflect a relative slowdown in real estate speculation and a trend toward price stability.
Advanced methodology based on artificial intelligence
This report is distinguished by its high accuracy, as the General Authority for Statistics relies on actual real estate transaction data from all administrative regions of the Kingdom to calculate the real estate price index. The Authority employs an updated methodology based on geographic artificial intelligence models, linking data from multiple sources, which directly contributes to enhancing transparency and improving the quality of data provided to both investors and citizens.
Economic context and the impact of Vision 2030
This price decrease aligns with the government's ongoing efforts within the framework of Vision 2030, which aims to increase homeownership rates among citizens. Major projects launched by the Ministry of Municipal and Rural Affairs and Housing, along with projects by leading real estate developers such as Roshen Group, have contributed to a significant and diverse supply of properties in the market. This increased supply naturally helps to curb inflation in property prices and makes them more accessible to a wider segment of the population.
Reflections of price decreases
This decline is a positive indicator for those seeking housing, as it boosts citizens' purchasing power and reduces the gap between income and property prices. Furthermore, price corrections in the commercial sector could stimulate the business environment by lowering operating costs for startups and small businesses, thus supporting non-oil economic growth in the Kingdom.
