Saudi Arabia Real Estate Prices Rise As Residential Demand Stays Strong

(MENAFN- Khaleej Times) Saudi Arabia's real estate market continued to post annual growth in the third quarter of 2026, with residential demand helping push property prices higher even as developers accelerated investment plans in Riyadh.

The Kingdom's real estate price index rose 1.2% year-on-year to 105.1 points in the third quarter, according to data from the General Authority for Statistics (GASTAT). The gain came despite a 1.2% decline compared with the previous quarter, highlighting a moderation in market momentum after earlier increases.

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Residential real estate, which accounts for nearly three-quarters of the index weighting, remained the key driver. Residential property prices increased 2.3% from a year earlier, supported by a 4.9% rise in residential land plot prices.

Against that backdrop, developer Reportage Saudi Arabia announced investments totalling 1.1 billion Saudi riyals in Riyadh as it expands its residential portfolio in the capital.

The company said it is advancing construction and development activity across its projects, with a particular focus on the Najd communities in Riyadh's Al Arid district.

“Saudi Arabia is not simply keeping pace with the future; it is shaping it,” said Eslam Hammam, chief executive of Reportage Properties Group in Saudi Arabia.“Our 1.1 billion riyal investment in Riyadh reflects our unwavering confidence in the strength of the Saudi economy and the long-term potential of its real estate sector.”

Reportage said its development model is focused on creating integrated residential communities that combine privacy, functional design and lifestyle amenities. The developer said the approach aligns with Saudi Vision 2030 and the Royal Commission for Riyadh City's plans to expand green spaces, diversify housing options and improve quality of life across the capital. The company also stressed that maintaining construction progress and meeting customer commitments remain central to its long-term strategy in the Kingdom.

Chairman Ayed Al-Juaid said the company's focus remains on delivering projects rather than announcing them.“The true strength of a real estate company is not measured by the number of projects it announces, but by its ability to transform promises into tangible achievements on the ground,” he said.

The latest investments signal continued developer confidence in Riyadh's housing market, even as quarterly data points to a cooling pace of price growth.

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