The latest Savills research finds that Riyadh’s residential market has maintained positive momentum during the first half of 2026, underlined by economic expansion, population growth, and continued demand from both end-users and international businesses.
Residential transaction volumes increased year-on-year and recovered strongly during Q2. The strong performance reflects Riyadh’s continued evolution supported by Vision 2030 initiatives and regulatory reforms.
“Riyadh continues to demonstrate the breadth of its real estate growth story. The recovery in residential activity reflects resilient end-user demand, while the strength of the Grade A office market shows the continued confidence of businesses establishing and expanding their presence in the capital.
“As new supply is delivered and market accessibility improves, Riyadh is well positioned to sustain its momentum over the medium term.”
Harry Goodson-Wickes, Head of KSA & Northern Gulf, Savills Middle East
Approximately 6,944 residential transactions were completed in H1 2026, compared with 6,620 in H1 2025, representing a 4.9% increase. Activity strengthened in Q2, with 4,095 transactions recorded, up from 2,849 in Q1 and the highest quarterly level over the five quarters from Q2 2025 to Q2 2026.
Residential transaction values totalled SAR 11.25bn during H1, down 20.7% from SAR 14.18bn a year earlier. However, values rose from SAR 4.81bn in Q1 to SAR 6.44bn in Q2, signalling improving market confidence following subdued conditions in late 2025.
Savills notes that the combination of higher transaction volumes and lower aggregate values reflected activity being concentrated within affordable and mid-market homes and a more balanced pricing environment following the strong appreciation recorded in recent years.
Properties priced below SAR 2m accounted for approximately 76% of H1 transactions, compared with 74% a year earlier. The SAR 500,000 to SAR 1m segment remained the largest, increasing its share from 30% to 32%. Demand also shifted gradually towards larger homes – the share of 200 to 299 sqm properties increased from 16% to 23% – while 300 sqm to 399 sqm homes rose from 17% to 19%.
“The second-quarter recovery in residential transactions is an encouraging sign of underlying market resilience. Buyers remain focused on affordability and value, but we are also seeing demand become more evenly distributed across different property sizes. Riyadh’s economic growth, expanding population and improving accessibility for international purchasers should continue to support long-term demand.”
Andrew Cummings, Head of Residential Agency, Savills Middle East
During Q2, Saudi Arabia introduced executive regulations governing foreign ownership of real estate and launched a digital property ownership platform. Savills expects the reforms to improve transparency, broaden the long-term buyer and investor base and reinforce confidence across the real estate market.
The Kingdom’s rent stabilisation framework is also providing greater pricing transparency and cost certainty for residential tenants and commercial occupiers.
Riyadh’s residential momentum is expected to remain supported by continued population growth, employment creation, and the ongoing implementation of Vision 2030. Oxford Economics forecasts Riyadh’s economy to grow by 8.4% in 2026.
While residential price growth is likely to moderate from the exceptional levels recorded in recent year, the office pipeline is expected to gradually improve availability and Savills anticipates that healthy end-user demand, sustained occupier requirements, and continued infrastructure investment will underpin resilient market performance over the medium term.
