Dubai: Saudi Arabia's real estate price index increased by 2.6 per cent in the third quarter of 2024 compared to the same period last year, driven by growth in the residential sector, according to General Authority for Statistics (GASTAT).
GASTAT reported a 1.6 per cent year-on-year rise in residential real estate prices during the third quarter. In contrast, property expenses in the commercial sector rose by 6.4 per cent, while agricultural sector costs increased by 8.7 per cent.
Developing the real estate sector is a key focus of Saudi Arabia's Vision 2030, aiming to position the country as a global hub for tourism and business by the end of the decade, as reported by Saudi financial news portal Argaam.com.
The Real Estate General Authority projects that Saudi Arabia's property market will reach a volume of $69.51 billion (Dh255 billion) in 2024 and $101.62 billion (Dh373 billion) by 2029, with a projected compound annual growth rate of 8 per cent.
In the commercial real estate sector, land prices saw a year-on-year increase of 6.3 per cent in the third quarter.
Commercial building prices rose by 8.6 per cent compared to the same period in 2023, although expenses for galleries and shops fell by 1.1 per cent.
The Hail region and Northern region experienced annual increases of 5 per cent and 1.7 per cent, respectively, while the Mecca region and Eastern Province saw year-on-year declines of 1.3 per cent and 8.3 per cent.
