Riyadh city
Saudi Arabia’s residential real estate market recorded a sharp slowdown in activity during the first quarter of 2026, according to Knight Frank. 
The consultancy said transaction volumes fell 50% year-on-year (YoY) to 29,490 deals, while transaction values declined 57% to SAR 22 billion.
The slowdown was most pronounced in Riyadh, where transaction volumes and values dropped 82% compared with the same period a year earlier. Weaker activity was also recorded in Jeddah, the Dammam Metropolitan Area, Makkah and Madinah.
Knight Frank attributed the performance to mounting housing affordability pressures and weaker mortgage demand, while negative sentiment stemming from the regional conflict also weighed on demand.
Despite subdued transaction activity, residential prices continued to increase across most major markets.
Apartment prices in Riyadh rose 6.3% year-on-year in Q1 2026, while villa prices increased 4.9%. Apartment prices also advanced 2% in Jeddah and 2.3% in the Dammam Metropolitan Area.
Knight Frank said the gains reflected price resilience during January and February before the impact of the regional conflict intensified, adding that the full effect of these developments has yet to be reflected in aggregate transaction data.
Key Residential Market Indicators in Q1 2026
Indicator
Q1 2026
YoY Change
Residential transactions
29,490 deals
(50%)
Residential transaction value
SAR 22 bln
(57%)
Riyadh transaction volumes and values
—
(82%)
Riyadh apartment prices
—
+6.3%
Riyadh villa prices
—
+4.9%
Jeddah apartment prices
—
+2.0%
Dammam Metropolitan Area apartment prices
—
+2.3%
Knight Frank said the National Housing Co. remains the primary driver of residential supply growth in the Kingdom through the development and delivery of integrated housing communities across multiple regions.
Residential Stock Forecast
Region
2025
2030E
Riyadh
2.7 mln units
More than 3.3 mln units
Jeddah
—
1.47 mln units
Dammam Metropolitan Area
—
Nearly 1 mln units
Riyadh office market remains resilient
Meanwhile, the Kingdom’s office market continued to show strong fundamentals during Q1 2026, particularly in Riyadh.
Key Riyadh Office Market Indicators
Indicator
Q1 2026
YoY Change
Grade A office rents
SAR 2,770/sqm
+2.5%
Occupancy rate
97%
—
Knight Frank attributed the strength to sustained occupier demand amid a limited supply of high-quality institutional office space.
Office supply set for expansion
Knight Frank expects the office market to enter a new phase over the coming years as major office developments currently under construction are delivered.
Riyadh office stock
Year
Area
2025
Around 6 mln sqm
2032E
More than 10.6 mln sqm
According to Knight Frank, the expansion will provide tenants with greater choice while supporting the Kingdom’s long-term economic growth objectives.
Riyadh city
Saudi Arabia’s residential real estate market recorded a sharp slowdown in activity during the first quarter of 2026, according to Knight Frank.
The consultancy said transaction volumes fell 50% year-on-year (YoY) to 29,490 deals, while transaction values declined 57% to SAR 22 billion.
The slowdown was most pronounced in Riyadh, where transaction volumes and values dropped 82% compared with the same period a year earlier. Weaker activity was also recorded in Jeddah, the Dammam Metropolitan Area, Makkah and Madinah.
Knight Frank attributed the performance to mounting housing affordability pressures and weaker mortgage demand, while negative sentiment stemming from the regional conflict also weighed on demand.
Despite subdued transaction activity, residential prices continued to increase across most major markets.
Apartment prices in Riyadh rose 6.3% year-on-year in Q1 2026, while villa prices increased 4.9%. Apartment prices also advanced 2% in Jeddah and 2.3% in the Dammam Metropolitan Area.
Knight Frank said the gains reflected price resilience during January and February before the impact of the regional conflict intensified, adding that the full effect of these developments has yet to be reflected in aggregate transaction data.
Key Residential Market Indicators in Q1 2026
Indicator
Q1 2026
YoY Change
Residential transactions
29,490 deals
(50%)
Residential transaction value
SAR 22 bln
(57%)
Riyadh transaction volumes and values
—
(82%)
Riyadh apartment prices
—
+6.3%
Riyadh villa prices
—
+4.9%
Jeddah apartment prices
—
+2.0%
Dammam Metropolitan Area apartment prices
—
+2.3%
Knight Frank said the National Housing Co. remains the primary driver of residential supply growth in the Kingdom through the development and delivery of integrated housing communities across multiple regions.
Residential Stock Forecast
Region
2025
2030E
Riyadh
2.7 mln units
More than 3.3 mln units
Jeddah
—
1.47 mln units
Dammam Metropolitan Area
—
Nearly 1 mln units
Riyadh office market remains resilient
Meanwhile, the Kingdom’s office market continued to show strong fundamentals during Q1 2026, particularly in Riyadh.
Key Riyadh Office Market Indicators
Indicator
Q1 2026
YoY Change
Grade A office rents
SAR 2,770/sqm
+2.5%
Occupancy rate
97%
—
Knight Frank attributed the strength to sustained occupier demand amid a limited supply of high-quality institutional office space.
Office supply set for expansion
Knight Frank expects the office market to enter a new phase over the coming years as major office developments currently under construction are delivered.
Riyadh office stock
Year
Area
2025
Around 6 mln sqm
2032E
More than 10.6 mln sqm
According to Knight Frank, the expansion will provide tenants with greater choice while supporting the Kingdom’s long-term economic growth objectives.
