Riyadh Property Market: Days on Market Climb as Sellers Offer Bigger Incentives

The average Riyadh home now spends 43 days on the market, up nearly 18% from a year ago, while sellers are trimming listed prices to encourage hesitant buyers in several key districts.

For real estate agents and property developers, these figures matter. Mortgage rates remain elevated—hovering at 6.4% for new home loans, according to Saudi Home Finance—and a recent influx of off-plan apartment releases is intensifying competition among vendors. As the Saudi summer heats up, so does the urgency for sellers to move stock, especially as buyers’ negotiating power grows during a traditionally slower season.

Al Olaya’s Listings Linger

The city centre’s Al Olaya neighborhood, long a magnet for both Saudi professionals and expat executives, now sees flats sitting unsold for an average of 49 days, compared to just 36 at this time last year, according to data from Riyadh Listings Watch. Meanwhile, in suburban Al Malaz, three-bedroom villas are typically advertised for more than 56 days before a deal closes—nearly double the 30-day average in 2024. Local agent Reda Properties confirmed that in both areas, vendors are routinely discounting asking prices by 4–7% to spark buyer action. At Roshn’s Sedra masterplanned community on the capital’s northern outskirts, developers have responded with furniture allowances and mortgage payment holidays valid through September.

For buyers, this has translated to sharp deals: the median resale apartment in Al Olaya changed hands for SAR 1.41 million last month, down from SAR 1.53 million in July 2025. Al Malaz villa prices have slipped to a median SAR 2.38 million, with some sellers accepting offers as low as SAR 2.2 million to close quickly, according to transactional data compiled by Ejar.

Data Shows Widening Discounts

The latest Riyadh Chamber of Commerce property survey confirms what agents see on the ground: average vendor discounting—the percentage by which homes sell below their initial list price—has crept up to 5.8% citywide from 4.1% a year earlier. Higher mortgage costs, a wave of new completions in King Abdullah Financial District, and delays to some government-backed buyer support schemes have all played a part. JLL’s Q2 2026 Riyadh Market Snapshot notes an especially sharp uptick in unsold inventory in king Fahd Road and Digital City precincts, both of which saw days-on-market surge past 60 days for premium flats this quarter.

With Eid Al-Adha just past and attention turning to the autumn buying season, most agents expect deeper discounts will persist until borrowing costs ease or activity ramps up after the summer lull. Buyers are advised to act swiftly on well-priced stock in high-demand streets such as Tahlia Street and Prince Mohammed bin Abdulaziz Road, where supply remains tight even amid broader softness. For vendors, experts recommend transparent pricing and creative incentives over further delays. As Riyadh’s landscape shifts, timing and flexibility are fast becoming sellers’ best tools in a lengthening market.