Real estate prices in Saudi Arabia’s residential sector saw a 2.8 percent rise during the second quarter of 2024, raising the overall real estate price index by 1.7 percent. The General Authority for Statistics (GASTAT) also reported a 1.5 percent increase in the agricultural sector’s real estate prices and a 0.4 percent decline in commercial real estate prices.
Land plot prices propel growth
The GASTAT attributes the rise in Saudi Arabia’s residential real estate prices to the 2.8 percent increase in the prices of land plots. It also revealed that apartment prices increased by 2.9 percent. Meanwhile, prices of residential buildings decreased by 0.1 percent, villa prices declined by 0.5 percent, and house prices by 1.4 percent.
On the other hand, commercial real estate prices declined by 0.4 percent due to the decline in commercial land plot prices. In addition, commercial exhibition prices dropped 0.6 percent, while the prices of commercial buildings and commercial centers remained stable.
Quarter-on-quarter, Saudi Arabia’s general real estate price index increased by 1.1 percent due to a 1.6 percent rise in residential prices and a stabilization in the commercial sector. On the other hand, agricultural sector prices increased by 1.6 percent, as a result of the increase in agricultural land prices.
Sector to reach $2.27 trillion in 2024
Saudi Arabia has a large and growing population, with a high demand for housing and commercial properties. In addition, the government has implemented several reforms and policies to attract foreign investment in the real estate sector, in line with Vision 2030. These include easing restrictions on foreign ownership of property and introducing new regulations to streamline the investment process.
Therefore, the real estate market in Saudi Arabia is expected to reach a value of $2.27 trillion in 2024, with the residential segment holding the largest share, projected to reach a market volume of $1.61 trillion this year, according to data from Statista.
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