According to the General Authority for Statistics (GASTAT), the growth in the residential sector was the primary driver of the 2.6% increase in Saudi Arabia’s real estate price index in the third quarter of 2024 when compared to the same period the previous year.
According to GASTAT, residential real estate prices increased 1.6% in the third quarter. In contrast, costs in the agricultural sector increased by 8.7%, while commercial sector property expenses increased by 6.4%.
According to Saudi financial news portal Argaam.com, Saudi Arabia’s Vision 2030 places a strong emphasis on the development of the real estate industry with the goal of making the nation a major international center for business and tourism by the end of the decade.
According to the Real Estate General Authority, the Saudi Arabian real estate market is expected to grow at a compound annual growth rate of 8%, reaching a volume of $69.51 billion (Dh255 billion) in 2024 and $101.62 billion (Dh373 billion) by 2029.
In the third quarter, land prices in the commercial real estate sector increased 6.3% year over year.
While costs for galleries and stores decreased by 1.1%, the price of commercial buildings increased by 8.6% from the same period in 2023.
While the Mecca region and Eastern Province saw year-over-year decreases of 1.3% and 8.3%, respectively, the Hail region and Northern region saw annual increases of 5% and 1.7%.