Riyadh's residential and office property markets maintained positive momentum during the first half of 2026, with residential transaction volumes recovering in the second quarter and demand for Grade A office space remaining strong, according to new research from Savills.
The city's property market continues to benefit from economic growth, population expansion, job creation and demand from both local buyers and international businesses. Vision 2030 initiatives, corporate relocations and regulatory reforms are also supporting Riyadh's development as a major residential and commercial centre.
Residential transactions increase
Around 6,944 residential transactions were recorded in Riyadh during the first half of 2026, up 4.9% from 6,620 transactions during the same period last year.
Activity accelerated significantly during the second quarter, with 4,095 transactions recorded compared with 2,849 in the first quarter. The Q2 figure was the highest quarterly transaction volume recorded during the five quarters from Q2 2025 to Q2 2026.
Despite the increase in transaction volumes, the total value of residential transactions declined 20.7% year-on-year to SAR 11.25 billion during H1 2026, compared with SAR 14.18 billion a year earlier.
However, transaction values increased from SAR 4.81 billion in Q1 to SAR 6.44 billion in Q2, indicating a recovery in market activity following weaker conditions in late 2025.
Savills attributed the difference between transaction volumes and overall values partly to increased activity in affordable and mid-market properties, alongside a more balanced pricing environment after strong price growth in previous years.
Properties priced below SAR 2 million accounted for approximately 76% of transactions during the first half, compared with 74% in H1 2025.
The SAR 500,000 to SAR 1 million price bracket remained the largest segment, increasing its share of transactions from 30% to 32%.
Demand also shifted towards larger homes. Properties measuring between 200 and 299 square metres accounted for 23% of transactions, compared with 16% a year earlier, while the share of homes measuring 300 to 399 square metres increased from 17% to 19%.
Grade A office occupancy remains at 98%
Riyadh's Grade A office market continued to record strong demand during Q2 2026, with occupancy remaining at 98% amid limited availability.
Prime rents in Zone A reached SAR 2,483 per square metre, representing an increase of 2% quarter-on-quarter and 6% year-on-year.
New market entrants accounted for 63% of Savills' completed leasing transactions during the quarter, while relocations made up the remaining 37%.
Foreign businesses generated approximately 90% of total enquiries, with particularly strong interest from companies based in the United States.
Demand was concentrated in offices ranging from 500 to 1,000 square metres, which accounted for 45.5% of enquiries.
The technology, media and telecommunications sector generated the largest share of enquiries at 54.5%, followed by banking, financial services and insurance at 27.3%.
More than 700 global companies had established regional headquarters in Riyadh by early 2026, exceeding the Vision 2030 target of 500.
New office supply expected from late 2026
More than 570,000 square metres of Grade A office space is scheduled to be delivered in Riyadh from late 2026 onwards.
The pipeline includes developments at Diriyah Gate, Prime Business Resort and Prince Mohammed bin Salman Nonprofit City, also known as Misk.
The additional supply is expected to gradually increase the availability of high-quality office space and provide businesses with more options as demand continues to grow.
Regulatory reforms support property market
Saudi Arabia also introduced new measures during Q2 2026 aimed at improving access and transparency within the property market.
Executive regulations governing foreign ownership of real estate were introduced, alongside the launch of a digital property ownership platform.
According to Savills, these reforms could broaden the long-term pool of buyers and investors, improve transparency and strengthen confidence in the real estate market.
The Kingdom's rent stabilisation framework is also providing greater clarity around pricing and costs for residential tenants and commercial occupiers.
Riyadh outlook remains positive
Riyadh's property markets are expected to remain supported by population growth, employment creation, corporate expansion and the continued implementation of Vision 2030 initiatives.
Oxford Economics forecasts the Riyadh economy to grow by 8.4% in 2026.
While residential price growth is expected to moderate from the exceptional levels seen in recent years, and new office developments should gradually ease supply constraints, Savills expects end-user demand, business expansion and continued infrastructure investment to support the market over the medium term.
The combination of recovering residential activity and sustained demand for premium office space indicates that Riyadh's transformation into a regional business and residential hub remains underway.
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