Saudi Arabia's property prices declined 0.7% year-on-year in the fourth quarter of 2025, marking the first annual drop in four years since data became available from the General Authority for Statistics, it reported on January 20.

Prices fell for the second consecutive quarter on a quarterly basis following government decisions aimed at balancing the property market.

Property prices in Riyadh continued their quarterly decline for the third consecutive quarter, falling 0.9% in the fourth quarter. The decline followed government measures for property market balance in the capital issued at the end of March. Riyadh prices rose 3% year-on-year, the first annual increase in four years, according to statistics authority data.

The annual decline nationwide resulted from falling residential property prices, which hold the largest weight in the index at 72.2%, dropping 2.2% in the second consecutive quarterly decline. Land prices fell for the second straight quarter, with land accounting for nearly half the index. Villa, flat and floor prices all declined at varying rates.

Commercial property recorded its slowest growth rate in three quarters at 3.6%, whilst agricultural land prices slowed by 11 percentage points to 4.3%, though this had minimal impact on the index given its marginal weighting of under 2%.

Prices declined in 10 of Saudi Arabia's 13 regions over the past three quarters since the government measures were issued, with some areas experiencing declines approaching 12%.

The Eastern Province recorded the highest price increase at 6.8%, followed by Tabuk and Makkah. Northern Borders region saw the steepest decline at 11.8%, followed by Hail and Madinah.

The price declines follow government directives in March to balance the property market through measures addressing rising property prices in the capital.

Measures included lifting development freezes on land north of Riyadh covering over 80 square kilometres, as part of plans to provide up to 40,000 plots annually to citizens over five years at prices not exceeding SAR1,500 ($400) per square metre, to increase residential supply and reduce price pressures.

Procedures also included amending white land fees to reach 10% annually instead of 2.5% previously, with vacant properties included for the first time, aiming to activate supply, encourage development and reduce investor retention of unexploited land. Fees apply to land and buildings exceeding 5,000 square metres.

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