Riyadh Property Sellers Cut Prices as Homes Linger Longer on the Market

Vendors in Riyadh’s most sought-after suburbs are slashing asking prices as the average home now sits on the market for 76 days citywide—a marked increase from just 49 days this time last year, latest figures from Alsakan Data Observatory show.

This trend of longer listing times could reshape expectations for both buyers and sellers. After a blistering boom in late 2024 and early 2025, the capital’s real estate sector now faces a cooler market, with buyers growing more selective amidst tightening credit and an uptick in new apartment completions. For those looking to sell in established neighbourhoods like Al Narjis or the villa-lined blocks of Al Yasmin, adjusting pricing strategies has become crucial.

Sellers Facing Pressure in Northern Districts

Al Narjis, just east of King Salman Road, saw a 19% rise in average listing time since January. According to Riyadh-based brokerage Bayut, properties in the family-friendly enclave are now selling for SAR 6,300 per square metre, down from SAR 6,700 at the first quarter’s peak. At nearby The Boulevard Riyadh, several units in mid-rise developments have seen price reductions of over 7% year-to-date, especially those that lingered past the three-month mark without serious offers.

"There’s more room for negotiation than we’ve seen in years," said one city centre agent, pointing to a glut of unsold apartments in Al Sahafa and Malqa. Developers in new projects off Anas bin Malik Road are offering incentives such as waiver of service fees for the first year or furniture packages, as they compete for a shrinking pool of buy-ready clients. Some long-time residents of luxury compounds in Al Hamra report waiting more than four months before receiving a serious inquiry at their original list price.

Discounting Gathers Pace as Market Adjusts

According to data released this week by the Ministry of Municipal, Rural Affairs and Housing, citywide vendor discounting averaged 5.4% below original listing prices in June—up from 3.1% at mid-2025. In some oversupplied pockets—particularly north of Imam Saud bin Faisal Street—buyers have successfully negotiated discounts as high as 9%. Market sources say a combination of rising utility and maintenance costs, along with expectations of further interest rate hikes by SAMA, is keeping buyers cautious.

Registered transactions in key precincts such as An Nada have dropped by 13% year-on-year, even as new units are completed at pace, particularly near King Abdullah Financial District. The sharpest slowdowns remain concentrated in the high-end segment, where large, family-sized villas priced above SAR 4.5 million can now take over five months to shift. By contrast, compact two-bedroom apartments near Princess Nourah bint Abdulrahman University are still moving briskly, helped along by discounted mortgage rates for young professionals under the Sakani initiative.

What Sellers Should Expect in the Next Quarter

With more than 4,200 new title deeds registered in June alone, market participants do not foresee a swift reversal of the longer selling timelines. Agents advise that realistic pricing is essential if vendors are to attract qualified buyers during the warm summer months, especially as families delay moves to avoid the school holiday disruption. For buyers, increased choice and growing leverage at the negotiating table make this an opportune moment—particularly in districts where the supply pipeline remains robust.

Sector analysts say vendors should expect the citywide time-on-market to hover above the 70-day mark through the remainder of 2026, unless borrowing costs unexpectedly fall or inbound migration surges. Until then, price flexibility, home staging, and bundled incentives will remain key for sellers attempting to beat the averages in a changing Riyadh market.