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Saudi Property Prices Rise 1.2% in Q3 Amid Security Concerns
Confirmed
In Short: Saudi Arabia's real estate prices increased 1.2 percent in the third quarter of 2026, driven by gains in residential land and agricultural property prices.
Saudi Arabia's real estate prices rose 1.2 percent in the third quarter of 2026, according to official data from the General Authority for Statistics (GASTAT). The increase was driven by gains in residential land and agricultural property prices.
Residential land prices saw a 4.9 percent increase, while apartment prices rose 1.7 percent and residential floor units increased by 0.8 percent. However, villa prices declined, falling 0.4 percent, and apartment prices slipped 0.5 percent.
Commercial property prices declined 0.3 percent on a quarterly basis, while agricultural property prices increased 0.2 percent. The overall property price index fell 1.2 percent quarter on quarter, despite rising annually, as residential prices declined 1.5 percent.
The Northern Borders region recorded the strongest annual increase in property prices among Saudi Arabia’s administrative regions, at 12 percent, followed by Riyadh at 4.6 percent and Madinah at 0.3 percent.
The Ministry of Municipalities and Housing said 29 million square meters of land in the Riyadh region had been developed, while another 21 million square meters remained under development as part of efforts linked to the undeveloped land and vacant property fees program.
The homeownership rate reached 66.24 percent at the end of 2025, according to Minister of Municipalities and Housing Majed Al-Hogail, who said villa prices around Jadat Hittin and Al Malqa remained relatively stable, ranging from SR6 million ($1.59 million) to SR10 million.
Despite the economic progress, security concerns remain. King Khalid International Airport in Riyadh was targeted twice on Thursday, with the first attack striking airport facilities and the second hitting a stationary aircraft belonging to national carrier Saudia.
The attacks caused property damage and wounded Saudi citizens and residents of various nationalities, with injuries ranging from minor to critical.
The Saudi-led coalition in Yemen announced on Tuesday night that it had intercepted and destroyed six missiles and three drones in various parts of Saudi Arabia, amid a sharp escalation between Saudi Arabia and the Houthis.
The UN special envoy for Yemen, Hans Grundberg, said the country faces a greater risk of renewed large-scale conflict than at any point since the UN-brokered truce of April 2022.
King Mohammed VI of Morocco condemned the attacks, stating that they were a blatant attack on the feelings of more than one billion and 800 million Muslims across the world and a violation of the principles associated with Islam, including peace, tolerance, the protection of human life, and the sanctity of religious sites.
What this adds
The security situation in Saudi Arabia has escalated, with multiple attacks on critical infrastructure, including King Khalid International Airport, which has affected property prices and investor confidence.
What's confirmed
- On a quarterly basis, commercial property prices declined 0.3 percent, while agricultural property prices increased 0.2 percent.
- Regional differences Northern Borders recorded the strongest annual increase in property prices among Saudi Arabia’s administrative regions, at 12 percent, followed by Riyadh at 4.6 percent and Madinah at 0.3 percent.
- RIYADH -- The Saudi-led coalition in Yemen announced on Tuesday night that it had intercepted and destroyed six missiles and three drones in various parts of Saudi Arabia.
- A Houthi attack on King Khalid International Airport in Riyadh on Saturday killed more than a dozen people and injured over 300, according to Saudi authorities.
What's still developing
- The increase comes as Saudi Arabia continues to promote homeownership and expand housing supply under its Vision 2030 economic diversification program, while affordability and financing conditions remain key factors shaping demand.
- The attacks also caused property damage, the authority said. 02 Oct 2026 - Vol 05 | Issue 40 GACA said emergency teams and relevant agencies responded immediately under established emergency procedures.
- In a subsequent statement, Al-Malki said that debris from the interception of the missile targeting Dhahran fell in a residential area, adding that the relevant authorities were handling the incident on site.
- The developments came amid a sharp escalation between Saudi Arabia and the Houthis, with the Houthis intensifying missile and drone attacks on Saudi Arabia and Saudi forces stepping up strikes on Houthi-held areas in Yemen.
- Health minister Qasim Buhaibeh said in a post on X that “shelling by the terrorist Houthi militia today, Friday, targeting residential neighborhoods and displacement camps in the city of Marib, has resulted -- according to an initial toll -- in the deaths of two civilians and injuries of varying severity to 14 others”.
- Debris from an intercepted Houthi ballistic missile injured an Arab resident and caused limited damage to a house and vehicle in Riyadh on Wednesday, Saudi Civil Defense said, in a new attack on the Saudi capital.
- The latest interception comes after Saudi air defenses destroyed two Houthi cruise missiles over Riyadh late on Tuesday, with debris injuring four people and damaging around 15 residential homes, according to Civil Defense.
- Saudi Civil Defense issued an early warning for the country's eastern province earlier on Tuesday, then issued another for Riyadh shortly after the Dhahran interceptions.
- “These despicable attacks and desperate attempts to undermine the security, stability and prosperity of the proud Saudi people do not represent only an attack on brotherly Saudi Arabia, its people, and those performing Umrah there,” King Mohammed VI said.
- Saudi Arabia has headed a military coalition backing Yemen’s internationally recognized government since 2015, fighting against the Houthis, who seized control of the capital, Sanaa, and other parts of the country in 2014.