Saudi Gazette report
RIYADH — The real estate inflation rate in Saudi Arabia slowed to 1.3 percent in the third quarter of 2025, compared to the same period in 2019. This was driven by a decline in the performance of the residential sector, which fell by 0.9 percent in the third quarter, compared to a growth rate of 0.4 percent in the previous quarter, according to a report issued on Monday by the General Authority for Statistics (GASTAT).

In contrast, other real estate sectors continued to record significant increases, led by the commercial sector, which rose by 6.8 percent in the third quarter compared to the same quarter of 2024. This was driven by a 7.2 percent increase in commercial plot prices, a 3.3 percent increase in building prices, and a 1.1 percent increase in showroom prices.

Regarding the details of the residential sector, the Real Estate Price Index report of GASTAT for the third quarter showed a 0.9 percent decline in land prices and a 1.7 percent decline in apartment prices. Meanwhile, villa prices rose by 0.2 percent and residential floor prices by 0.3 percent.

The report showed a 1.1 percent decline in the real estate price index during the third quarter, compared to a 3.2 percent decline in the second quarter of 2025. This decline was driven by a 1.1 percent fall in residential sector prices, due to a 0.8 percent decrease in land prices, a 1.1 percent decline in apartment prices, and a 2.5 percent decrease in villa prices. Meanwhile, residential floor prices rose by 0.6 percent.

In the same context, real estate sector prices recorded a fall of 1.6 percent on a quarterly basis, impacted by a 1.8 percent drop in commercial land prices and a 0.5 percent fall in showroom prices. Meanwhile, building prices rose by 1 percent.

Real estate in the agricultural sector increased by 7.3 percent compared to the second quarter of 2025, supported by a 7.3 percent rise in agricultural land prices. Regarding the distribution of real estate inflation across regions, growth slowed to 1 percent in the Riyadh region. The Eastern Province recorded the highest increase in real estate prices, at 6.1 percent, followed by Najran at 3.7 percent, Tabuk at 3.4 percent, and Makkah at 1.9 percent.

In contrast, Hail, the Northern Borders, and Madinah regions experienced the highest declines, at 7.3 percent, 7.7 percent and 8 percent respectively.