RIYADH — The property price index in Saudi Arabia recorded a decline of 1.6 percent during the first quarter of 2026, compared to the same quarter of the previous year. This was mainly driven by a 3.6 percent drop in the residential sector, as well as a drop in the prices of land, apartments, and villas. According to the Q1 2026 Real Estate Price Index, published on Monday by the General Authority for Statistics (GASTAT), there was a 3.6 percent decrease in residential sector prices, while commercial property prices recorded positive growth of 3.4 percent year-on-year. The report attributed the 3.6 percent decline in residential property prices to a 3.9 percent drop in residential land prices, a 1.1 percent decrease in apartment prices, and a 6.1 percent fall in villa prices, while residential floor prices rose by 0.6 percent. Conversely, commercial property prices rose by 3.4 percent year-on-year in the first quarter of the current year, driven by a 3.6 percent increase in commercial land prices and a 2.6 percent rise in building prices, while showroom and retail shop prices fell by 3.5 percent. The report also showed that the agricultural sector maintained its annual growth rate, with agricultural prices rising by 11.8 percent, influenced by an 11.8 percent increase in agricultural land prices. On a quarterly basis, real estate prices declined by 0.2 percent compared to the fourth quarter of 2025, impacted by a 2.3 percent decrease in commercial sector prices. Specifically, commercial land prices fell by 2.4 percent, building prices by 1.3 percent, and prices for showrooms and shops by 2.9 percent. On the other hand, residential sector prices rose by 0.5 percent, driven by increases in residential land prices (1.7 percent), apartment prices (1.6 percent), and residential floor prices (one percent). Villa prices, however, declined by 6.2 percent. Agricultural sector real estate prices also recorded an increase of 3.1 percent during the first quarter of the year, with agricultural land prices rising by 3.1 percent. At the regional level, real estate prices fell by 4.4 percent in the Riyadh region and by 0.7 percent in the Makkah region during the first quarter of 2026 compared to the first quarter of 2025. The regions of Al-Baha, Hail, and Northern Borders experienced the largest price decreases, at 9.2 percent, 8 percent, and 5.1 percent respectively. As for the Eastern Province, it recorded the highest increase in real estate prices in the Kingdom at 6.9 percent, followed by the Najran region at 3.5 percent, while Tabuk and Asir regions at 1.5 percent each.