RIYADH: According to official data, Saudi Arabia’s real estate price index increased 1.7% in the second quarter of 2024 compared to the same period the previous year, primarily due to rising costs in the residential sector.
The General Authority for Statistics reports that in the second quarter, housing prices rose by 2.8 percent year over year, primarily due to a 2.8 percent increase in land plot costs.
Saudi Arabia’s economic diversification is contingent upon the growth of the residential sector as the country transitions into a hub for business and tourism. One of the Middle East’s fastest-growing industries is real estate in the Kingdom. According to the Real Estate General Authority, its market volume is expected to grow at an estimated compound annual growth rate of 8%, reaching $69.51 billion in 2024 and $101.62 billion by 2029.
However, GASTAT reported that the prices of commercial real estate fell by 0.4 percent year over year in the second quarter due to a 0.4 percent decline in the cost of commercial land plots. According to the report, there was no discernible change in the prices of commercial buildings and commercial centres during the second quarter of this year. Instead, prices stabilised.
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