RIYADH: Saudi Arabia’s property sector maintained its growth trajectory in the fourth quarter of 2024, with the Kingdom’s real estate price index increasing by 3.6 percent year on year, official data showed.
According to the General Authority for Statistics, the growth was primarily driven by the residential real estate sector, which recorded a 3.1 percent rise compared to the same period in 2023.
The Real Estate Price Index, a key statistical tool, measures changes in property prices in Saudi Arabia based on transaction data across the Kingdom.
Developing the real estate sector is a core objective of Vision 2030, which aims to position Saudi Arabia as a global hub for tourism and business.
According to the Real Estate General Authority, the Kingdom’s property market is projected to reach $69.51 billion in 2024 and $101.62 billion by 2029, with a compound annual growth rate of 8 percent.
“Data indicates that real estate prices in the residential sector experienced varying increases in the fourth quarter of 2024 compared to the same quarter of the previous year. The residential sector recorded an overall increase of 3.1 percent, with a weighting of 72.6 percent in the index.,” said GASTAT.
The rise was largely attributed to a 2.5 percent increase in residential land plot prices, which account for 45.7 percent of the index. Apartment prices rose by 2.9 percent, while villa prices saw a sharper uptick of 6.5 percent.
However, prices for residential floors registered a slight decline of 0.7 percent year on year in the fourth quarter of 2024.
The commercial real estate sector experienced a 5 percent year-on-year price increase, primarily driven by a 5.2 percent rise in commercial land plot prices. Building prices also grew by 5.1 percent, while prices for galleries and shops declined by 1.7 percent.
Property prices rose by 2.8 percent during the quarter compared to the same period in 2023 in the agricultural sector.
Regional price trends
In the Riyadh region, real estate prices rose by 10.2 percent in the fourth quarter of 2024 compared to the same period in 2023, while property expenses in Najran and Tabuk increased by 4.6 percent and 1.1 percent, respectively, during the same period.
Real estate prices in Makkah declined by 0.6 percent, and property expenses in the Eastern Province dropped by 4.6 percent.
GASTAT also reported that property prices in Al -aha and Asir experienced significant declines of 16.7 percent and 7.3 percent in the fourth quarter compared to the same period in 2023.
Quarterly comparison
Compared to the third quarter of 2024, the real estate price index increased by 1.6 percent in the fourth quarter, influenced by a rise in the expenses of the residential sector which went up by 1 percent.
Prices for residential land plots increased by 0.9 percent quarter on quarter, while apartments and villas saw price hikes of 0.5 percent and 2.4 percent, respectively.
In the commercial sector, prices grew by 2.7 percent quarter on quarter. Agricultural property prices fell by 9.8 percent, with a corresponding drop in agricultural land prices.
