Saudi Arabia real estate market shifts toward digital models amid price declines

The Saudi Arabian real estate market is undergoing a significant digital transformation, characterized by the adoption of artificial intelligence and smart platforms. New marketing models have emerged, including dynamic pricing where property values decrease every second for a set period to create competition and urgency among buyers. Industry experts note that approximately 70% of the property purchasing journey in the Kingdom now begins on mobile devices, shifting the competitive focus toward digital experience and transparency.

Concurrently, recent market data shows a sharp decline in transaction metrics. The average selling price dropped by 28% compared to the previous week, with total transactions totaling 3,428 valued at over 2 billion riyals. Regional performance varied: Jeddah led in transaction value with 464 deals worth approximately 610 million riyals, while Makkah recorded 137 transactions. In Madinah, the average price per meter saw a significant decrease compared to the prior week. The lack of recorded transactions for Riyadh is attributed to the transfer of documentation for most capital neighborhoods to the real estate registry.