GASTAT: Saudi Arabia’s real estate price index surges by 2.6 percent in third quarter
Date
10/28/2024 9:38:59 AM
(MENAFN) In the third quarter of 2024, Saudi Arabia's real estate price index saw a notable increase of 2.6 percent compared to the same period last year, as reported by the General Authority for Statistics (GASTAT). This growth can be attributed primarily to rising expenses in the residential sector, which recorded a year-on-year price increase of 1.6 percent. Additionally, the commercial and agricultural sectors also experienced significant price hikes, with property expenses rising by 6.4 percent and 8.7 percent, respectively.
The development of the real estate sector is a fundamental aspect of Saudi Arabia's Vision 2030 initiative, which aims to position the Kingdom as a global hub for tourism and business by the end of the decade. The Real Estate General Authority has projected that Saudi Arabia's property market, recognized as one of the fastest-growing sectors in the Middle East, will reach a market volume of USD69.51 billion in 2024, with expectations to grow to USD101.62 billion by 2029. This growth is anticipated to occur at a compound annual growth rate of 8 percent.
GASTAT provided insights into the dynamics of the residential real estate market, noting that prices varied within the sector in the third quarter of 2024 when compared to the same quarter of the previous year. The residential sector's overall increase of 1.6 percent is particularly significant, as it represents 72.6 percent of the index. The increase was predominantly driven by a 1.6 percent rise in the prices of residential land plots, which carry a weighting of 45.7 percent in the overall index.
This trend in rising real estate prices reflects broader economic developments in Saudi Arabia, signaling increased demand and investment in the property market. As the Kingdom continues to implement its Vision 2030 goals, the growth in real estate prices underscores the importance of this sector in driving economic diversification and enhancing the Kingdom's appeal as an investment destination.
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