Saudi Gazette report

RIYADH — The General Authority for Statistics (GASTAT) disclosed on Thursday that the real estate price index has shown a 1.7% increase in the second quarter of 2024 compared to the same quarter of the previous year. This rise is attributed to a 2.8% increase in residential real estate prices.

The report indicated that residential land prices rose by 2.8% on an annual basis, making the residential sector the largest contributor to the overall increase in real estate prices in Q2 2024 compared to Q2 2023.

The residential sector recorded a 2.8% increase in Q2 2024, while the prices of residential buildings increased by 0.1%, villas by 0.5%, houses by 1.4%, and apartments by 2.9%.

Conversely, the commercial real estate sector saw a decline of 0.4%, influenced by a 0.4% decrease in commercial land prices and a 0.6% drop in commercial shop prices.

Prices of commercial buildings and shopping centers remained stable with no significant change in Q2 2024.

The agricultural sector, however, experienced a 1.5% increase, driven by a 1.5% rise in agricultural land prices.

The real estate price index is based on recorded data from the Ministry of Justice regarding real estate transactions. This index is a crucial tool for supporting relevant authorities in making economic and statistical decisions related to real estate price movements and future predictions over different periods. The index encompasses three main sectors with various property types: the residential sector (land, building, villa, apartment, house), the commercial sector (land, building, shop, commercial center), and the agricultural sector (agricultural land).