The General Authority for Statistics (GASTAT) reports that due to the 1.1% increase in residential property prices, the real estate price index grew by 0.8% in the second quarter of 2023 compared to the second quarter of 2022.
According to GASTAT’s Real Estate Price Index report for Q2 2023, the price growth of residential plots (1.2%) on a yearly basis in Q2 2023 was the primary factor driving up real estate prices in the residential sector. The survey also indicated a 1.0% increase in apartment prices, a 0.9% decline in building costs, a 5.0% decline in villa prices, and a 0.1% decline in house prices.
The research states that commercial real estate prices climbed by 0.2% as a result of a 0.2% increase in the cost of commercial land parcels. In the second quarter of 2023, the cost of commercial exhibition spaces fell by 1.1%, while the cost of commercial centers and buildings remained stable.
According to the research, the 0.3% decline in the price of agricultural land is what caused the 0.3% decline in the agricultural sector.
A statistical technique for determining the relative change in real estate prices in Saudi Arabia is the Real Estate Price Index. The Ministry of Justice, which serves as the only official source of information and data on the real estate industry in Saudi Arabia, has a dataset of real estate transactions that is the basis for this study.
This dataset is the result of the ministry’s computerized documentation and registration operations. Real estate transactions involve a number of elements, including price, location, industry, and kind.
As a result, GASTAT determines the index on a quarterly basis for each administrative region of Saudi Arabia based on the sector and type of real estate.