GASTAT report: Saudi real estate prices rose 0.7% in Q3

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Saudi Arabia’s real estate price index increased by 0.7 percent in the third quarter compared to the same period in the previous year, primarily due to rising residential property values, according to official data from the General Authority for Statistics (GASTAT).

In the residential sector, real estate prices saw a 1.1 percent annual increase, with land plot costs rising by 1.2 percent. This increase in residential property values had a significant impact on the overall index.

However, prices for buildings and villas declined by 0.9 percent and 3.8 percent, respectively, during the third quarter. House prices also fell by 0.1 percent, while apartment prices remained relatively stable.

In the commercial and agricultural sectors, property rates decreased by 0.1 percent and 0.3 percent, respectively, which limited the overall rise in the index. The index grew by 0.2 percent in the third quarter compared to the previous three months, mainly driven by a 0.4 percent increase in residential sector prices. Prices for villas decreased by 0.3 percent quarter-on-quarter, while apartment prices fell by 0.1 percent.

Residential building prices remained stable, with no significant relative change. Agricultural property prices did not change during this period.

The commercial sector also experienced a minor decline, with prices falling by 0.1 percent, primarily due to a proportional decrease in commercial land rates.

In August, Saudi Arabia introduced a real estate market initiative to improve property transactions, including ownership transfers, purchases, sales, and mortgages. As part of the initiative, the government is launching a real estate stock exchange to streamline real estate transactions in collaboration with the Ministry of Municipal, Rural Affairs, and Housing, as well as the Saudi Central Bank.

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