Is now a good time to buy a property in Saudi Arabia? (January 2026)

Authored by the expert who managed and guided the team behind the Saudi Arabia Property Pack

Everything you need to know before buying real estate is included in our Saudi Arabia Property Pack

Is it smart to buy now in Saudi Arabia, or should I wait as of 2026?

Do real estate prices look too high in Saudi Arabia as of 2026?

As of early 2026, the official Saudi Arabia Real Estate Price Index shows nationwide prices are only about 1.3% higher than a year ago, which suggests the market is not wildly overpriced at the national level.

However, when you look at Riyadh specifically, the picture changes because Cavendish Maxwell reports apartment prices jumped 10.5% and villa prices surged 12.4% in the year to mid-2025, which is a much hotter market.

On the other hand, Jeddah looks much calmer with apartment prices up just 1.8% and villas up only 2.5%, so whether prices look stretched in Saudi Arabia really depends on which city you're considering.

You can also read our latest update regarding the housing prices in Saudi Arabia.

Does a property price drop look likely in Saudi Arabia as of 2026?

As of early 2026, the likelihood of a sharp nationwide property price drop in Saudi Arabia is low because the market is not in an overheated state at the national level.

We estimate a plausible range of minus 5% to plus 8% for Saudi Arabia property prices over the next 12 months, with most scenarios landing closer to flat or modest gains rather than a crash.

The single macro factor that could most increase the odds of a price drop would be a significant tightening of mortgage credit or a sharp rise in interest rates that would squeeze affordability further in cities like Riyadh.

Fortunately, this scenario appears unlikely in the near term because Saudi Arabia's financial system remains stable and the central bank (SAMA) has been supportive of housing finance growth as part of Vision 2030 goals.

Finally, please note that we cover the price trends for next year in our pack about the property market in Saudi Arabia.

Could property prices jump again in Saudi Arabia as of 2026?

As of early 2026, there is a medium-to-high likelihood of another price surge in specific segments of the Saudi Arabia property market, especially in Riyadh's most sought-after neighborhoods.

We estimate that prices in hot Riyadh districts could rise another 8% to 15% over the next 12 months if demand continues to outpace supply, while calmer markets like Jeddah might see more modest gains of 2% to 5%.

The single biggest demand-side trigger that could drive prices higher is continued migration to Riyadh as the city attracts more jobs and corporate relocations under Vision 2030's economic diversification push.

Please also note that we regularly publish and update real estate price forecasts for Saudi Arabia here.

Are we in a buyer or a seller market in Saudi Arabia as of 2026?

As of early 2026, Saudi Arabia's property market is mixed overall, leaning toward balanced nationally but tilting seller-friendly in Riyadh and balanced-to-buyer-friendly in Jeddah and other regions.

Saudi Arabia doesn't publish a single months-of-inventory figure like Western markets, but Riyadh's transaction data shows values rising much faster than volumes, which typically indicates tight supply and gives sellers more leverage when negotiating.

Price reduction data is also limited in Saudi Arabia, but the fact that Jeddah saw villa rents actually decline while Riyadh rents surged suggests sellers in Jeddah have less pricing power compared to those in the capital.

Are homes overpriced, or fairly priced in Saudi Arabia as of 2026?

Are homes overpriced versus rents or versus incomes in Saudi Arabia as of 2026?

As of early 2026, homes in Saudi Arabia look fairly priced at the national level but stretched in Riyadh's hottest districts, where prices have outpaced what typical household incomes can comfortably support.

Looking at price-to-rent ratios, Riyadh's double-digit rent growth actually supports current prices because yields look reasonable for investors, but the recent five-year rent freeze policy may cap future rental upside and change that math going forward.

On price-to-income, the median Saudi household earns about SAR 164,000 per year, which means a comfortable purchase range is roughly SAR 820,000 to SAR 1.15 million, and many Riyadh villas now exceed that threshold significantly.

Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Saudi Arabia.

Are home prices above the long-term average in Saudi Arabia as of 2026?

As of early 2026, it's difficult to compare current Saudi Arabia property prices to a true long-term average because the official REPI uses 2023 as its base year and the newer methodology only started in late 2024.

What we can say is that the recent 12-month price change of around 1.3% nationally is much slower than the rapid gains seen in 2022 and 2023, suggesting the market has cooled to a more sustainable pace rather than accelerating away from fundamentals.

In inflation-adjusted terms, prices have likely grown modestly in real terms given Saudi Arabia's relatively low inflation environment, but Riyadh stands out as the clear exception where real price gains have been much stronger.

What local changes could move prices in Saudi Arabia as of 2026?

Are big infrastructure projects coming to Saudi Arabia as of 2026?

As of early 2026, massive infrastructure projects tied to Vision 2030 are actively reshaping Saudi Arabia's property market, with the most significant price impact coming from developments around Riyadh's expansion corridors and mega-projects like the King Abdullah Financial District area.

For Riyadh specifically, the timeline is already well underway with major construction ongoing, and the northern districts like Al Malqa, Al Yasmin, Al Narjis, and Hittin are seeing the strongest demand as they sit closest to new job centers and transportation links.

For the latest updates on the local projects, you can read our property market analysis about Saudi Arabia here.

Are zoning or building rules changing in Saudi Arabia as of 2026?

The most important zoning and building rule change being implemented in Saudi Arabia is the Ministry of Municipal and Rural Affairs' updated requirements for residential building construction, which aim to unify regulations and align them with the Saudi Building Code.

As of early 2026, these rule changes are expected to have a modest upward effect on prices because stricter compliance requirements can slow supply delivery and increase construction costs, especially for developers who need to adjust their processes.

The areas most affected by these regulatory changes are fast-growing urban zones in Riyadh, Jeddah, and the Eastern Province where the bulk of new residential development is concentrated and where developers must now meet updated standards.

Are foreign-buyer or mortgage rules changing in Saudi Arabia as of 2026?

As of early 2026, foreign-buyer rules in Saudi Arabia have just undergone a major liberalization with the updated Law of Real Estate Ownership by Non-Saudis now in effect, which opens the market to more international buyers and could support prices in prime areas over time.

The most significant foreign-buyer change is that non-Saudis can now own property for residential and investment purposes in most areas, though restrictions still apply to Makkah and Medina where ownership rules remain stricter.

On the mortgage side, Saudi Arabia has been expanding housing finance availability as part of Vision 2030 targets, and SAMA continues to monitor lending conditions to keep the market stable without major new restrictions expected in the near term.

You can also read our latest update about mortgage and interest rates in Saudi Arabia.

Will it be easy to find tenants in Saudi Arabia as of 2026?

Is the renter pool growing faster than new supply in Saudi Arabia as of 2026?

As of early 2026, renter demand in Saudi Arabia's major cities, especially Riyadh, appears to be growing faster than new rental supply can keep up, which is why rents have been rising sharply.

The clearest signal of strong renter demand is the concentration of population and job growth in Riyadh, where corporate relocations and Vision 2030 projects are drawing workers who need housing faster than developers can build it.

On the supply side, the government has launched nearly 26,000 off-plan housing units in the first half of 2025 alone, but these units take time to complete and don't always land in the neighborhoods where renters most want to live.

Are days-on-market for rentals falling in Saudi Arabia as of 2026?

As of early 2026, Saudi Arabia doesn't publish an official days-on-market metric for rentals, but the double-digit rent growth in Riyadh strongly suggests that well-priced units in good locations are getting snapped up quickly.

The gap between best areas and weaker areas is significant: rentals in prime Riyadh neighborhoods like Al Malqa, Hittin, and Al Yasmin likely lease within days, while units in less desirable locations or those priced above market can sit much longer.

One key reason days-on-market falls in Saudi Arabia is the formalization of the rental market through the Ejar system, which has reduced phantom listings and made the market more efficient for quality properties.

Are vacancies dropping in the best areas of Saudi Arabia as of 2026?

As of early 2026, vacancy rates in Riyadh's best-performing rental neighborhoods like Al Malqa, Hittin, Al Yasmin, and Al Nakheel appear to be very tight based on strong rent growth and government intervention on affordability.

These prime Riyadh areas likely have vacancy rates well below the overall market average, while Jeddah neighborhoods like Al Zahraa, Al Rawdah, and Al Shati show more balanced conditions with villa rents even declining in some cases.

A practical sign that Riyadh's best areas are tightening first is that the Saudi government introduced a five-year rent freeze specifically for Riyadh, which typically only happens when affordability pressure and tight vacancy become politically visible.

By the way, we've written a blog article detailing what are the current rent levels in Saudi Arabia.

Am I buying into a tightening market in Saudi Arabia as of 2026?

Is for-sale inventory shrinking in Saudi Arabia as of 2026?

As of early 2026, Saudi Arabia doesn't publish a national active-listings inventory figure, so it's difficult to give a precise year-over-year comparison, but transaction patterns suggest inventory is tight in the most desirable segments.

The best proxy we have is that Riyadh's transaction values have been rising much faster than transaction volumes, which typically means buyers are competing for a limited pool of quality homes and pushing prices up in the process.

The most likely reason inventory feels tight in Riyadh is that demand from relocating professionals and growing families has outpaced the delivery of new move-in-ready homes in popular northern districts.

Are homes selling faster in Saudi Arabia as of 2026?

As of early 2026, Saudi Arabia doesn't have a single national median days-on-market figure, but market signals suggest that well-priced homes in high-demand areas like north Riyadh are selling faster than they were a year ago.

We estimate that the year-over-year change in selling speed is likely faster for quality listings in Riyadh's hot districts, while overpriced homes or those in weaker locations are sitting longer, creating a two-speed market.

Are new listings slowing down in Saudi Arabia as of 2026?

As of early 2026, we don't have reliable year-over-year new listings data for Saudi Arabia's resale market, but the more useful supply signal is new unit deliveries and off-plan launches, which have been substantial.

Seasonally, the Saudi Arabia property market tends to be quieter during Ramadan and summer months, but the current level of new supply entering the market through off-plan sales is not unusually low given MOMAH's active launch program.

Is new construction failing to keep up in Saudi Arabia as of 2026?

As of early 2026, new housing construction in Saudi Arabia is ramping up significantly under Vision 2030 targets, but in Riyadh's most in-demand districts, supply still appears to lag behind the pace of household formation and job-driven migration.

The recent trend shows strong activity with nearly 26,000 off-plan units launched in the first half of 2025 and more completions expected, but this supply doesn't always arrive in the specific neighborhoods where demand is hottest.

The single biggest bottleneck limiting new construction in prime Saudi Arabia locations is land availability and the time required to bring large master-planned communities through planning, infrastructure, and delivery in sought-after corridors.

Will it be easy to sell later in Saudi Arabia as of 2026?

Is resale liquidity strong enough in Saudi Arabia as of 2026?

As of early 2026, resale liquidity in Saudi Arabia is generally solid in major cities like Riyadh and Jeddah where transaction infrastructure is active and demand is supported by jobs and population growth.

While there's no official median days-on-market figure, the strong transaction values reported through Ministry of Justice data suggest that correctly priced apartments, duplexes, and family villas in good locations are finding buyers without excessive delays.

The property characteristic that most improves resale liquidity in Saudi Arabia is location in a high-demand northern Riyadh neighborhood or a family-friendly community with good access to schools, amenities, and employment centers.

Is selling time getting longer in Saudi Arabia as of 2026?

As of early 2026, selling time in Saudi Arabia appears to be getting longer for overpriced properties while remaining quick for well-positioned listings, creating a widening gap between the best and average homes.

We estimate the realistic range for selling time in Saudi Arabia spans from just a few weeks for prime Riyadh family homes priced correctly to several months for properties that are overpriced or in less desirable locations.

One clear reason selling time can lengthen in Saudi Arabia is affordability pressure, because when prices rise faster than incomes (as they have in Riyadh), buyers become more selective and mediocre listings sit longer.

Is it realistic to exit with profit in Saudi Arabia as of 2026?

As of early 2026, the likelihood of selling with a profit in Saudi Arabia is medium to high if you hold for at least three to five years and buy in a structurally strong location, but quick flips are risky given modest national price growth.

We estimate that a minimum holding period of three to five years is typically needed in Saudi Arabia to absorb transaction costs and benefit from price appreciation, especially if you're buying in a market growing at just 1% to 3% nationally.

Total round-trip transaction costs in Saudi Arabia, including real estate fees, transfer taxes, and other charges, typically run around 5% to 7% of the property value, which is roughly SAR 50,000 to SAR 80,000 on a SAR 1 million home (approximately USD 13,000 to USD 21,000 or EUR 12,000 to EUR 19,000).

The single factor that most increases your profit odds in Saudi Arabia is buying in a high-demand Riyadh neighborhood like Al Malqa or Hittin where structural demand from Vision 2030 projects supports long-term price growth.

What sources have we used to write this blog article?

Whether it's in our blog articles or the market analyses included in our property pack about Saudi Arabia, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.

We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.