Saudi Arabia construction and real estate markets show divergent price trends

Data from the General Authority for Statistics reveals divergent trends in Saudi Arabia's construction and real estate markets for 2026. In the construction sector, electrical cables and wires saw significant annual price increases exceeding 20%. Specifically, the 50mm national electrical cable rose by 27.12% to 110.70 SAR per meter. Rebar prices also faced upward pressure, with most sizes increasing by over 17%, such as the 12mm national rebar which rose 21.57% to 3,129.78 SAR per ton.

In the real estate sector, the general price index rose by 1.3% year-on-year in the second quarter of 2026. However, the market showed significant variation by category: villa prices decreased by 9.7%, while residential land prices increased by 6.3%. The commercial sector saw a 3.2% decline, and the agricultural sector experienced an 11.3% increase. While villa prices have trended downward, the rising cost of residential land continues to influence the overall cost of new housing developments.